The UAW Will Now Own Chrysler?
This certainly turns the tables on the notion that unions are somehow “anti-business.”
STERLING HEIGHTS, Mich. â€” The United Auto Workers union will own 55% of a restructured Chrysler LLC and its retiree health care trust will get a seat on the board if union members vote to approve contract concessions this week.
Chrysler stock could even be traded publicly again, as there are mechanisms for the UAW to sell shares to fund the health care trust.
Factory-level union leaders voted unanimously Monday night to recommend approval of concessions that union President Ron Gettelfinger said would 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.
Up is down, black is white, dogs and cats living together…
Honestly, I think this could actually turn out rather well because the union obviously has increased interest in making sure the business stays afloat and is profitable.
We shall see…