United Auto Workers President Ron Gettelfinger said yesterday that, although the union will become the majority shareholder in Chrysler when the automaker emerges from bankruptcy, the group does not plan to be a long-term shareholder. Gettelfinger said that if the stock appreciates, the union’s Voluntary Employee Beneficiary Association will sell off its majority stake.
“As soon as the VEBA’s in a position to sell stock, we will sell stock to keep the VEBA going,” Gettelfinger said in a press conference yesterday evening.
Currently, the UAW is set to receive a 55 percent nonvoting share in Chrysler . Fiat would receive 20 percent, the United States Treasury 8 percent and Canadian governments about 2 percent. The UAW will not control Chrysler, despite the majority share.
Gettelfinger said that he and Fiat CEO Sergio Marchionne are on the path towards a good relationship. The UAW will host Italian union leaders soon for plant tours, Gettelfinger said. Gettelfinger was optimistic that Chrysler would emerge from the so-called surgical bankruptcy quickly.
