Equity Stake in GM???

[LeBuick]

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

The GM board meeting came on the same day that United Auto Workers president Ron Gettelfinger signaled his union was prepared to offer further concessions in order to win support for the bailout provided management shared in the sacrifice.

"They need to establish that executive compensation is something that they're willing to curtail," Gettelfinger said in an interview on CNN. "They can also give the government an equity stake in the business." [ID:nN30474588]

 

[Revmitchell]

Let it fail.

 

[rbell]

Straight up: If the UAW president is for it, I'm against it.

The UAW is one of many huge problems at GM.

 

[LeBuick]

Straight up: If the UAW president is for it, I'm against it.

The UAW is one of many huge problems at GM.

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;

The union is under pressure to surrender protections that allow laid-off factory workers at the Detroit automakers to collect over 90 percent of their pay by shifting to a jobs bank. The union agreed to restrictions on the program

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?

 

[carpro]

Unions own the democrat party.

Chapter 11 bankruptcy would force reorganization of the company and dissolution of current union contracts in favor of new restructured agreement.

It is no wonder democrats are dead set on spending billions of taxpayer dollars to keep that collective bargaining agreement in effect.

The UAW is pulling the strings. Democrats dance.

 

[Revmitchell]

Unions own the democrat party.

Chapter 11 bankruptcy would force reorganization of the company and dissolution of current union contracts in favor of new restructured agreement.

It is no wonder democrats are dead set on spending billions of taxpayer dollars to keep that collective bargaining agreement in effect.

The UAW is pulling the strings. Democrats dance.

Thats right. The big 3 need to fail to get away from the Union claws.

 

[windcatcher]

Let it fail.

Agreed!
This is the only way to really insure that full restructure/ reorganization can take place to save the companies and restore their production and make profitable again. Any less than failure/ bankruptucy may allow the continuation of parasitic loyalties and expenses habits and wasteful patterns of organization which led to their losses and failure to adapt.

 

[Revmitchell]

Agreed!
This is the only way to really insure that full restructure/ reorganization can take place to save the companies and restore their production and make profitable again. Any less than failure/ bankruptucy may allow the continuation of parasitic loyalties and expenses habits and wasteful patterns of organization which led to their losses and failure to adapt.

This isn about saving GM. It is about saving the Union. Let it fail.

 

[LeBuick]

Agreed!
This is the only way to really insure that full restructure/ reorganization can take place to save the companies and restore their production and make profitable again. Any less than failure/ bankruptucy may allow the continuation of parasitic loyalties and expenses habits and wasteful patterns of organization which led to their losses and failure to adapt.

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.

 

[LeBuick]

This isn about saving GM. It is about saving the Union. Let it fail.

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?

 

[Revmitchell]

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?

I would have to ask my Father, he was a union organizer or years.I don't believe so. But it would make their current contract completely null and void. And any new contract would be based on speculation of future profits which would be meager.

 

[LeBuick]

I would have to ask my Father, he was a union organizer or years.I don't believe so. But it would make their current contract completely null and void. And any new contract would be based on speculation of future profits which would be meager.

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.

 

[Revmitchell]

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.

And they would lose much of their control. Which would be a good thing. It could bring the price of their automobiles down and continue to move the market further.

 

[LeBuick]

And they would lose much of their control. Which would be a good thing. It could bring the price of their automobiles down and continue to move the market further.

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.

 

[Revmitchell]

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.

Probably true. But if the Union loses its excessive benefits package GM might be better able to afford to back its product up.