Government takes General Motors loss to protect UAW croniesPosted: December 21, 2013
Remember how the Obama re-election campaign kept crowing that “General Motors is alive and Osama bin Laden is dead”? Well, Osama is still dead, and the government is now selling the last of its GM stock — at a loss to taxpayers of $10 billion. Who has gained? Bloomberg’s James Sherk has the answer: GM’s UAW-represented employees.
Sherk points out that the government agreed to — actually, it engineered — terms quite different from those of ordinary bankruptcies. UAW members, unlike employees of bankrupt airlines, took essentially no haircut, and there was even $1 billion for UAW employees of Delphi, to whom GM had no legal obligation. (Delphi was spun off from GM several years before)
But, hey, the UAW kicked in heavily to the Obama campaign and to Democratic campaigns generally, and so they got paid off, in an episode of what I called “gangster government.” Or in the style of Chicago politics. The later Mayor Daley was supposed to have said, when asked why one of his sons got the insurance contract at Chicago O’Hare International Airport, “If a man can’t help his family, how can it be America?”
So our Chicago-based president helped his funders, at a cost to the government of $10 billion.
- How Autoworkers Became More Equal Than Others (bloomberg.com)
- GM doesn’t have to pay retiree med bills (cnbc.com)
- UAW’s gain is taxpayers’ loss (rep-am.com)
- UAW wants to end two-tier wage system (vindy.com)
- UAW Wants to End Two-Tier Wages in Next Contract (thetruthaboutcars.com)
- UAW seeks to rebuild support among Chrysler workers as Holiefield era wanes (a1limo4windycity.wordpress.com)
- SANTA LIED. Retired GM workers just lost $450 Milllion in benefits, judge rules against United Auto Workers (UAW) (aconservativeedge.wordpress.com)
- GM invests over $1 billion in US plants (wxyz.com)
- UAW wants to eliminate wage system (toledoblade.com)
- Report: Judge says GM doesn’t owe $450M in retiree benefits (autoblog.com)