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post #1 of 12 (permalink) Old 01-13-2009, 09:30 AM Thread Starter

 
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Post UAW could bankrupt GM

According to conditions written into the federal loan agreement that General Motors signed last month, the automaker will be forced to default on the loan should “any labor union or collective bargaining unit shall engage in a strike or other work stoppage.” This stipulation means that if the UAW was to strike, GM would be forced to pay back the loan immediately - forcing GM into bankruptcy.

The United States Treasury set many conditions that would trigger a default, though the terms hadn’t been disclosed until earlier today when GM filed the necessary documents with the Securities and Exchange Commission.

The deal requires the UAW to accept lowered wages by February 17, though many analysts have stated that the incoming Obama administration would have the power to change this stipulation.

Union leaders met with GM officials earlier this week to talk about how the loan agreement’s demands would have to be met. UAW President Ron Gettelfinger stated that the union has no intention to reopen its labor contracts.

The UAW says it will ask its members to vote on concessions before it agrees to them. Official negotiations are set to begin early next week.

The UAW also says it plans to push the Obama administration to modify the terms of the loan after January 20, when the president-elect is sworn into office.

“I can’t see that a strike would serve any benefit right now,” analyst Aaron Bragman of IHS Global Insight told the Detroit News. “It sounds like maybe some Republican union-busting language got in there, which would not surprise me.”



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post #2 of 12 (permalink) Old 01-13-2009, 09:52 AM
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According to conditions written into the federal loan agreement that General Motors signed last month, the automaker will be forced to default on the loan should “any labor union or collective bargaining unit shall engage in a strike or other work stoppage.” This stipulation means that if the UAW was to strike, GM would be forced to pay back the loan immediately - forcing GM into bankruptcy.


The deal requires the UAW to accept lowered wages by February 17, though many analysts have stated that the incoming Obama administration would have the power to change this stipulation.


The UAW also says it plans to push the Obama administration to modify the terms of the loan after January 20, when the president-elect is sworn into office.

“I can’t see that a strike would serve any benefit right now,” analyst Aaron Bragman of IHS Global Insight told the Detroit News. “It sounds like maybe some Republican union-busting language got in there, which would not surprise me.”



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That's the way it should be.

Nobody ever said Union officials were smart.
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post #3 of 12 (permalink) Old 01-13-2009, 03:08 PM
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That's the way it should be.

Nobody ever said Union officials were smart.
I'm just curious, what is the way it should be, your statement is somewhat ambigous.
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post #4 of 12 (permalink) Old 01-13-2009, 06:07 PM
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Unions need to get over themselves. They're gonna bargain themselves right out of a job.
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post #5 of 12 (permalink) Old 01-14-2009, 11:19 PM
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They need to let GM file for Chapter 11. So GM can start from fresh with their contracts with the UAW.
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post #6 of 12 (permalink) Old 01-15-2009, 03:29 AM
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Cool Let's all work for minimum wage and this will solve all.

What's with all of the Unions this and the Unions that.
So it's wrong for the UAW to try to maintain a salary for their employees that's competitive with today's cost of living?

So everyone should just bow down and cut their salary & benefits while the Management and CEO's continue to draw down rediculously bloated salaries and they themselves not take a significant cut?

The employees are the one's who actually operate whatever machinery isn't automated and tend to many other details in the final assembly of the pathetic autos that are produced in this country.

Why should the rank and file give up anything when the big bosses who produce absolutely nothing other than earn the salary of many lower employees combined and travel in private jets and other luxury vehicles and are too good to travel in the same products their company manufactures and sells to the rest of the public, some of us who are actually impressed with the "quality" of say Chrysler. What a friggin joke.

Many blame the Unions for the country's economical woes, but yet less than 28% of the citizens in this entire country are actually unionized.
Everyone else is scraping by and should be happy because the government says so while farming out lots of our work overseas with child labor.

For the underdog I am Union and proud.

Yes there are lots of corrupt Unions that do not a damn thing but take dues money and live off it, but there are some Unions that actually try
to benefit its membership.

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post #7 of 12 (permalink) Old 01-15-2009, 07:15 AM
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With you RailRoader,
I hear the only diff between US built foreign auto workers and US auto workers are the retirement benefits paid to retirees. Toyota, Honda do not have these retirees as they are so new to the market here.

Wages and benefits of both are comparable. Do we really want to cut payments to retirees and put them on state funds because they are now unable to make their payments?? When they worked their career with the promise that the company would pay their retirement and now they are left out due to this new agreement??
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post #8 of 12 (permalink) Old 01-15-2009, 07:48 AM
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This can so easily turn into a heated debate. I'm sure there are a lot of people here that look at it from both sides. Some unions are necessary, I agree, but those that comment on the corporate heads flying around in private jets while employees are scraping by...take a look at the Union heads too!

I said " That's the way it should be " because, GM has been threatening bankruptcy if they don't get this money, the Union is suppose to be protecting the employees, so now the government is giving GM and others this money to ensure the 40,000+ jobs are saved ( for what another year, maybe ) and if the employees turn around and whine about wages or whatever, and strike. I say screw them, hit the streets, send the work to Mexico.
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post #9 of 12 (permalink) Old 01-15-2009, 07:58 AM
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I think the emphasis on reform of the US auto makers should be based on the inferior product they make rather than wages. If I opted to buy other than an American built car it would be based on quality and not cost.
But it is easy to point at wages rather than the harder fix of reforming engineering philosophy and management direction on product selection offerings.
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post #10 of 12 (permalink) Old 01-15-2009, 08:35 AM
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I think the emphasis on reform of the US auto makers should be based on the inferior product they make rather than wages. If I opted to buy other than an American built car it would be based on quality and not cost.
But it is easy to point at wages rather than the harder fix of reforming engineering philosophy and management direction on product selection offerings.
I'm thinking if they built cars to the quality standards of 30 yrs ago, nobody would be able to afford them. It is all about money, environmental issues, and availabilty of the raw material, it's just not financially feasible to build quality anymore. They need people to have to buy a new car every 3-5 years in order to maintain turn-around.
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post #11 of 12 (permalink) Old 01-16-2009, 04:11 PM
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With you RailRoader,
I hear the only diff between US built foreign auto workers and US auto workers are the retirement benefits paid to retirees. Toyota, Honda do not have these retirees as they are so new to the market here.

Wages and benefits of both are comparable. Do we really want to cut payments to retirees and put them on state funds because they are now unable to make their payments?? When they worked their career with the promise that the company would pay their retirement and now they are left out due to this new agreement??
Where did I mention anything about cutting the working class/retirees pensions? My mocking Chrysler and the "American" built auto was about the lack of quality/craftmanship as opposed to Japanese built cars.

It was not my intention to say "Go Buy Foreign", I was just making a point and in case it wasn't noticed.... I own an American (Canadian Built) Car...
The almighty Dodge Intrepid.
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post #12 of 12 (permalink) Old 01-16-2009, 04:19 PM
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Originally Posted by cokey11 View Post
This can so easily turn into a heated debate. I'm sure there are a lot of people here that look at it from both sides. Some unions are necessary, I agree, but those that comment on the corporate heads flying around in private jets while employees are scraping by...take a look at the Union heads too!

I said " That's the way it should be " because, GM has been threatening bankruptcy if they don't get this money, the Union is suppose to be protecting the employees, so now the government is giving GM and others this money to ensure the 40,000+ jobs are saved ( for what another year, maybe ) and if the employees turn around and whine about wages or whatever, and strike. I say screw them, hit the streets, send the work to Mexico.
I mostly agree. lol except the Mexico part.
I just think it fair that if the working guy living paycheck to paycheck has to sacrifice so should the execs to an equal percentage of their salary & benefits. Yes some Union leaders are so corrupt and only look out for themselves instead of their membership, however the financial impact the 1,2 or 3 CEO's have on their company could pay for a large percentage of their workforce. Oh well we live in an imperfect world.

Even though I think Chrysler Corp. is crap I do like my car. I'm confused. lol

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