The United Auto Workers union has made it clear that it is willing to give some concessions in order to secure low-interest bridge loans for the Big Three, but the UAW won’t exactly be giving in for free. In exchange for further concessions, the UAW has expressed that it expects a seat on General Motors’ board.
According to the Detroit Free Press, UAW Local 2404 – out of Charlotte, North Carolina – posted on its web site that “the UAW seeks an equity stake in the company most likely in the form of a seat on the board of directors.”
GM, along with the rest of the Big Three, is seeking up to $34 billion in government bailout loans, which will likely come with plenty of strings attached. It remains unclear if Congress will grant the UAW a seat on GM’s board, but the request isn’t totally unreasonable.
In order to help secure government funding, the UAW has already delayed the automakers’ payments into VEBA – a retiree healthcare trust – and suspended the use of job banks. In addition, the UAW expects more GM job cuts and buyouts next year.
