Labor Law Guy

UAW to Own Chrysler, Uncle Sam Gets GM

Posted in Federal Labor Law, Random Musings by laborlawguy on April 29, 2009

If things stand as they’re now panning out, in no time Chrysler will be owned 55 percent by the United Auto Workers and General Motors will be owned 50 percent by the U.S. government, putting both of the new owners in a labor-front pickle.

How will UAW negotiate with itself when it comes contract time? Will it up wages and benefits, as unions are wont to do, even when it realizes the money isn’t there? This could be a great turning point for the labor movement–it may finally have to come to grips with reality.

On the GM front, how will union-friendly Team Obama treat the UAW after it has control of the automaker? Will it hew to its labor-lovin’, bleedin’ ol’ liberal heart and award massive wage and benefit hikes, knowing that it’s really the taxpayers’ footing the bill?

My gut instinct is that the union will handle this better than the Obamaites, who will want to set an example for the other companies in America of how to treat their workers correctly and with respect, that is, by showering them with ridiculous wages and benefits.

Winners: Chrysler and the UAW, which can grow up together; Losers: GM, Uncle Sam, and all of us taxpayers, the latter of whom will be subjected to a liberal-and-bureaucratic Orwellian nightmare.

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One Response

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  1. laborlawguy said, on May 1, 2009 at 6:44 am

    Actually, what was I thinking? A union is a union is a union, and the UAW would’ve–and might still, depending on what happens in bankruptcy court–looted the coffers of Chrysler and then forced Uncle Sam to pay everyone’s retirement and health benefits, leaving a skeleton in its wake. The deal with GM is even worse. If it goes unchallenged by creditors (it won’t), the government (Obama and his green idiot pals) would control 50 percent and the UAW 39 percent! Can you imagine? The Yugo would look like a luxury car compared to what those two goons would produce. Another skeleton in the making.


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