The UAW’s Voluntary Employees’ Beneficiary Association may have been allotted a majority stake in the new-look Chrysler , but a new report reveals the UAW’s 55 percent stake won’t necessarily translate into a controlling share of Chrysler.
Two inside sources revealed to The Detroit News that the UAW’s 55 percent stake in Chrysler will not grant the union voting rights over the company. Based the type of stock issued to the VEBA retiree fund, the UAW is not automatically entitled to a majority control.
“Equity stake doesn’t translate into voting control,” Harley Shaiken, labor professor at the University of California Berkeley, told The Detroit News.
Although Fiat was only granted a 20 percent stake in Chrysler , its voice will likely be much louder than that of the UAW’s. Moreover, Fiat’s influence will likely grow in the coming years, with the Italian automaker planning to eventually take a 35 percent stake in Chrysler.
