Equity Stake in GM???

First, I thought it was funny to see the Union president Gettelfinger say, "They need to establish that executive compensation is something that they're willing to curtail" I don't know if GM and UAW can find middle ground without an arbitrator.

However, Gettelfinger indicated part of the proposal my be to give the government equity stakes in GM. That's like being offered part ownership in the Titanic. What are the pro's and con's or part ownership?

http://www.reuters.com/article/privateEquity/idUSN3047799620081130

 

What can the big 3 do? I doubt the labor votes the union out.

I am normally in favor of organized labor but in the case of UAW, I feel their hands are just as dirty as the big 3 executives when it comes to why their industry is failing.

What really concerns me is the big 3 exec's can't make the reforms or adjustments to the company unless UAW agrees. I don't know if you read the story but this paragraph is an example of their work;

Why would you lay someone off if you continue to pay them 90% of their salary?

I really can't think of a pro for the people of this country to take equity stakes in the Big 3. I tried to equate it to Alaska and their dividend checks but that was too big of a gap to bridge.

Are we seeing the day when the Government becomes part owners in America's big business? Was AIG just a start?

 

I can agree if it's a pre-packaged chpt 11 that will ensure the workers employment and the satisfaction of debt so that other industries are not forced to layoff.

I'm not sure if a Judge and lawyers can restructure the company any better then their highly paid CEO's. I keep getting told that is why they get the big bucks. Perhaps this is the time for them to earn it.

 

No matter what happens, it seems clear the union as we know it won't exist a year from now. They call it making concessions but I cal it sweating bullets. I hate to see them go Chpt 11 but the more I read of the unions strong hold I don't know of many alternatives.

Question: After a chapter 11, would the employee's have to vote the union back in?

 

Agreed, UAW would have some touch choices to make. There are more employees on pensions than on production payroll. Can't pay everybody from a limited pot. Either everyone will have to accept a little or a large group will get dropped from the payroll.

 

On this we agree, let the price match the product.

I would also like to see less hassle for warranty work. Japanese back their products where as the big 3 try to convince you there is no problem or that your particular problem isn't covered.