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UAW strike would cause GM to lose loan

01/08/2009, 5:49 PM

By Andrew Ganz

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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01/08, 5:56 PM

posted by:

Struggle

Does ‘by the jimmiez’ mean anything to you?

Wow, perhaps Obama can change this much like He wants the delay for DTV.

01/08, 6:14 PM

posted by:

mentir

… Just waiting for the GM troll to make his way in here and try to spin the new Buick into this story…
IT WILL SAAAVEE EVERAYTHING!!111!!! BUICK RUUULZ!!111.

01/08, 6:32 PM

posted by:

Lariat Luxury Locomotive Liner No.3

UAW needs to rid itself of Gettelfinger, et al, as badly as GM needs to rid itself of Wagoner and Lutz. Until such time you will find both their business strategies under the dictionary definition of “clutterf@#k.”

01/08, 7:04 PM

posted by:

AnonymousCoward

“The UAW says it will ask its members to vote on concessions before it agrees to them.”

Voting? It is that voting that got them into the ****hole were they are today.

01/08, 7:22 PM

posted by:

A4

so this should be good for GM, as soon as they strike, bye bye union workers youre all out of a job for good.

01/08, 7:29 PM

posted by:

Need more oil for GM is an idiot

Yeah its funny how need oil for gm never posted here for weeks while gm was in need of the bailout. Now that they got their daddys money hes here shooting his mouth off agian.

01/08, 7:37 PM

posted by:

inline6

Tying the UAW and GM together is essential for the success of the restructuring. This puts the pressure on the unions to make the concessions GM needs them to make.

I can only hope that Obama keeps these conditions as-is through 3/31.

01/08, 7:46 PM

posted by:

DrFill

Sounds like all the leverage the Union needs
Nice!
DrFill

01/08, 8:31 PM

posted by:

beatusmongous

“The UAW says it will ask its members to vote on concessions before it agrees to them.”

You guys want hot dogs, pizza or nachos?

Had to, sorry.

01/08, 8:47 PM

posted by:

desertdriver

Bankruptcy means that GM can get rid of the union, right? So is the UAW playing with fire?

01/08, 9:15 PM

posted by:

ltbullitt

greed…..its the problem all around. No one realizes they need the other. UAW is biting the hand that feeds.

01/08, 9:24 PM

posted by:

hfry

if the UAW strikes… They deserve to Go under.

01/08, 9:27 PM

posted by:

Impulsive

Bravo.

01/08, 9:58 PM

posted by:

tripleonefive

STRIKE !

01/08, 10:02 PM

posted by:

anyclearer

to hell with the union

01/08, 10:07 PM

posted by:

johnnycanuck

Oh please, somebody double dare them.

01/08, 10:36 PM

posted by:

S1L1SC

Haha – this is priceless…

They strike – GM goes bankrupt.
They don’t agree to lower wages – GM goes bankrupt.

01/08, 10:39 PM

posted by:

wideopenthrottle

S1L1SC
Agreed. GM is f_cked by the UAW regardless

01/08, 10:40 PM

posted by:

bimmer_mann_18

screw unions. they take money from your paycheck, ignore complaints, and force you to strike. That’s why my dad’s utility company goes on strike every 5 years for new contracts. Yet, when he puts in a complaint for working 30hrs straight, they do absolutely nothing! They actually had meaning during the industrial era but now, it’s just a way for people to work less and not get in trouble because “we’re with the union.”

01/09, 12:04 AM

posted by:

howsmydriving

Sounds like a high-stake version of the game, “Chicken.”

01/09, 12:36 AM

posted by:

JoeKing

This reminds me of the parable of the Scorpion & the frog….

The scorpion asks if he can ride across the the river on the frog’s back…
The frog says no…”you’ll sting me & I’ll die”
The scorpion says..”I won’t sting you…I’ll drown.”
The frog says..OK… lets go.
Half way across the river…the scorpion stings the frog
The frog asks..why did you sting me…now we are BOTH going to die
The scorpion replys…”Its my NATURE”

Lesson applied here…the UAW when asked to acept pay parity..WILL strike.. its THEIR nature!

01/09, 6:03 AM

posted by:

fan

now this is hilarious… wonder what “need more trolls for gm” has to add about this…
GM is doomed…
(btw, i totally agree to the scorpion and frog story… isnt that from “skin deep” one great movie!)

01/09, 8:32 AM

posted by:

HoosierHero

The blind leading the blind…

01/09, 9:27 AM

posted by:

400horseSS

Its cool that a Union Busting President can set wages for workers, how many of you turds work for a greedy ass bank and dont have to worry about your pay being cut to say, bank workers in Cambodia, 10 more days and his stupid ass is gone.

01/09, 9:31 AM

posted by:

Eudaemonic

wideopenthrottle:
true, but what is the UAW without GM?

01/09, 10:00 AM

posted by:

Z06ified

Now we’ll get to see how stupid the UAW really is. If they even attempt to play hardball, they’ll shoot themselves right in the foot.

Congress did something right for a change with these loan restrictions. It forces the UAW to get reasonable, or be gone. Nice.

01/09, 10:21 AM

posted by:

bigjimid

Congress shot down the loans, remember? It was Mr. Bush who said that he wasn’t going to let them go under yet. But yes, I do agree. And I’m hoping to heck they strike, or do something else totally stupid.

01/09, 10:47 AM

posted by:

yarddog82abn

UAW President Ron Gettelfinger is a Domestic Terrorist…

01/09, 10:53 AM

posted by:

yarddog82abn

WOW, Need more oil, has not posted! but he was on line and must have read this article, he had some thing to say in other article’s around the same time, I guess he knows he’s F-ed on this topic…

01/09, 10:59 AM

posted by:

injunraiv

Seems to me this is union busting, plain and simple. Maybe it’s necessary, but since I don’t agree with bailouts in general, I can’t complain too much about the strings that come with them. But here’s an interesting twist. If GM goes bankrupt because of a strike, exactly HOW are they going to repay the loan?

01/09, 11:00 AM

posted by:

HoosierHero

Ya, where is Need More Loans for GM??

01/09, 1:15 PM

posted by:

rds130

@ injunraiv,

The chances of GM actually making the 3/31 deadline and paying the money back, are very, very small. I think the original point of the 3/31 was to force GM into bankruptcy but do so in a way that they had a feasible, viable plan to restructure. If those restrictions were never set, it’s possible GM, being as stubborn and arrogant as they have proven themselves to be, would not have had that plan in place, but would’ve still taken the money. I’m sure every analyst worth his salt suggested to Congress and the Bush administration bankruptcy is inevitable. At least this time someone is taking a proactive approach to ensure it’s Chapter 11 and not Chapter 7.

01/09, 1:15 PM

posted by:

ricky_b

Need More Oil is too busy trying to make other car brands look like fools. My guess is that we’re all a bit smarter than that.

As for a strike. The UAW could not be that stupid. A strike would immediately lead to a call for bancruptsy or the “car czar” stepping in. A strike any time in the next two years would gaurantee the end of the UAW in the US Auto industry.

01/09, 2:13 PM

posted by:

Zcarsales

The day the UAW strikes, should be the day GM issues a mass hiring for non-unionized work force. Perfect opportunity. KICK THE UAW OUT!

The lower labor costs will provide for a better quality and less expensive car.

01/10, 12:47 AM

posted by:

1c3d0g

Damn UAW! Gettelfinger should be removed A.S.A.P. before he destroys the last bits of the auto industry.

 
 
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