UAW leaders recommend approval of Chrysler deal

[Bozita]

Source: AP

UAW leaders recommend approval of Chrysler deal
BY DAVID N. GOODMAN AND TOM KRISHER • ASSOCIATED PRESS • APRIL 27, 2009

Factory-level leaders of the United Auto Workers union voted unanimously Monday night to recommend approval of concessions that could give a union-run trust 55% ownership of a restructured Chrysler LLC.

Union President Ron Gettelfinger said the deal will help keep the automaker out of bankruptcy.

A summary of the revised Chrysler-UAW contract says that Italian automaker Fiat Group SpA eventually will own 35% of a restructured Chrysler, with the remaining 10% stake divided between the U.S. government and secured lenders, mostly banks and hedge funds.

The Obama administration required that equity fund at least 50% of Chrysler’s $10.6 billion obligation to a union-run trust that will take over retiree health care costs starting next year, according to the summary.

Read more: http://www.freep.com/article/20090427/BUSINESS01/90427107/UAW+leaders+recommend+approval+of+Chrysler+deal

[sabbat hunter]

1. a union controlled

Chrysler...interesting.

First thing they need to do is hire new engineers who can design a car that is reliable, affordable and economical.

[BeatleBoot]

3. Can we keep the Jeep Engineers

I love my Jeep.

And they hit it out of the park with the Caliber for that niche.

And I love how the 300M echoes the Bentley.

[backscatter712]

6. Car engineering isn't really the problem.

I've driven modern American cars, and they're perfectly fine. The last American car I drove was a Chevy Cobalt, which was brand new last year, and it was decent.

I do highly recommend that GM, Chrysler and Ford invest a huge amount of R&D money into hybrid and electric vehicles - they've got some right now, but the technology needs a lot of development so we can have a better environment. That and shift production from the gas-guzzling Hummers and such to more economical vehicles in the meantime.

[sabbat hunter]

8. however

the engineering is a reason for the reliability issues. The damned things aren't designed properly

[LiberalFighter]

2. Will there be UAW members on the board?

[Canuckistanian]

4. That's a good idea

Who says that shareholders should be the only people who control the fate of Chrysler?

After all, the company was built with the labor of Union members.

Maybe the UAW should offer to buy into Chrysler. It's not like they have many competitors.

[LiberalFighter]

9. Won't they have already had a buy into Chrysler with 55% ownership?

[Psephos]

5. Hope it works out better than employee-owned UAL n/t

[florida08]

7. have a 300 C

that we purchased in '05 that was built in Canada. Great car with no problems. Would be interesting if the CAW and the UAW made a joint effort to own Chrysler and forget the government and banks.

[Winterblues]

10. I suspect with Majority ownership there might be some concessions asked for upper management

as well as lower labor...Why should upper management make in excess of five hundred times what those on the floor make?

[xchrom]

11. recommend -- that would pretty much insure that i buy a chrysler car. nt