Intrepidation

UAW strike would cause GM to lose loan

13 posts in this topic

Left Lane News

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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I am in the Steel Workers Union and we don't get paid nearly as much as they do I think its time for a pay cut!

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I am in the Steel Workers Union and we don't get paid nearly as much as they do I think its time for a pay cut!

What do you think they get paid? You aren't going by that $70+ lie that includes the retiree costs, are you? Just curious as there is a lot of misinformation around.

“It sounds like maybe some Republican union-busting language got in there, which would not surprise me.”

Wasn't that how the deal was sold?

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in the end Bush pushed i forward with the authority the Treasury had to use Tarp funds, so no the deal wasn't being sold in those ways as when it was going through Congress as a bill. apparently, the administration still decided to put it in the language of thier own requirements.

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Even the UAW isn't stupid enough to pull a string that says "strike" on it that's tied to the trigger of a gun that's pointed at their own heads. I suppose the one positive outcome of a strike WOULD be the end of the UAW.

I was listening to CSPAN this morning and they had on a speaker who was head of Lockheed Martin at one time and he pointing out an oft cited statistic that we've all heard that the US spends more than almost any other country (we're #3) and our students perform at the lowest end of the testing scales. Hearing it again, made me wonder all over again why this is the case. We generally have a high standard of living, and usually the schools have the resources they need (despite their bitching to the contrary.) I realized the reason is that the teachers are unionized too. I'm not sure why it took me so long to make the connection but it seems fairly obvious to me now - duh.

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I think tt is the other way around. UAW CANNOT strike under the bailout agreement.

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I think tt is the other way around. UAW CANNOT strike under the bailout agreement.

What it really says is "if they do, this is what happens."

Edited by ellives
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What it really says is "if they do, this is what happens."

But if they cannot they how will the possibility happen?

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But if they cannot they how will the possibility happen?

I contract can never say "they can not" because we all know they can. What it *can* say is "if they do, we're going to come down on everyone with a hammer." This is the way the contract is written.

Personally I wouldn't even waste my time even talking to Gettelfinger. His job, role, and organization are so over. The time has finally come to say "this is what you're getting now get back to work and shut up about it or find yourself another job. There are 100 people waiting outside for yours if you don't want it."

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Even the UAW isn't stupid enough to pull a string that says "strike" on it that's tied to the trigger of a gun that's pointed at their own heads. I suppose the one positive outcome of a strike WOULD be the end of the UAW.

I was listening to CSPAN this morning and they had on a speaker who was head of Lockheed Martin at one time and he pointing out an oft cited statistic that we've all heard that the US spends more than almost any other country (we're #3) and our students perform at the lowest end of the testing scales. Hearing it again, made me wonder all over again why this is the case. We generally have a high standard of living, and usually the schools have the resources they need (despite their bitching to the contrary.) I realized the reason is that the teachers are unionized too. I'm not sure why it took me so long to make the connection but it seems fairly obvious to me now - duh.

I think a lot of the youth in the country are a bunch of lazy f*ckheads. I blame the parents.

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What do you think they get paid? You aren't going by that $70+ lie that includes the retiree costs, are you? Just curious as there is a lot of misinformation around.

“It sounds like maybe some Republican union-busting language got in there, which would not surprise me.”

Wasn't that how the deal was sold?

I have no idea what they get paid, but it shouldn't be alot more than we do. We get anywhere from 11.00 to 14.11, and the way I see it they should get paid somewhat more than we do because the cost of living in Michigan is probably more, but there is no call for this crap of 30 or 40 dollars an hour.

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I think a lot of the youth in the country are a bunch of lazy f*ckheads. I blame the parents.

Personally I think the whole country has an attitude of entitlement that is going to be a tough pill to swallow when they're out on the street. They'll all go begging to the government to give them a handout so they can sit at home and bitch about how bad things are. Eventually they'll figure out that all these manufacturing jobs that have been flooding out of the country over the last 20 years carried their "entitlement" right out of the country too. When you're a country that doesn't make anything, there is no wealth being created so you're stuck with nothing but 8 buck an hour Walmart jobs. Try buying a $200k house on that. Oh that's right... all those $200k houses are now worth $100k. Funny about that.

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From Talking with people and knowning family members in the Auto Industry in Michigan wages are as follows:

Line worker 6 months (new contract) 14 an hour caps at 20 no health 401k

Line worker 3 years (old contract) 23 an hour caps at 28 Health care 401k

Line worker 35 years 31 an hour unknown cap full benefits Pension

Skilled trades 12 years 23 an hour unknown cap health care 401k

Skilled trades 29 years 34 an hour unknown cap full benefits pension

Salaried Manager 4 years 38,000 a year no health 401k

Salaried supervisor 34 years 135,000 a year (high up) full benefits pension

These are average. these can kinda maybe support a family quite happily. The middle class. The hard working tax paying society.

Until this next generation of kids can prove me wrong most are idiots.

Seems like the only good ones come from hard working lower and middle class family's that want to better themselves.

Teachers being union is the problem? That's comical and cute! Its mostly lack of respect What happened to the good old days of beating kids with rulers. detentions and timeouts are useless. I can't tell you how many times I have seen disrespectful acts by kids in public. yeah sure in the day i wasn't the best kid but I damn knew i had to respect elders and others property.

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