• Oct 1st 2007 at 7:03PM
  • 19
Felix Salmon at Seeking Alpha says the short answer is, yes, but it probably won't.
With the newly draw up contract between the UAW and GM, the automaker will transfer almost $30 billion into a what is basically a health care fund, with another $5 billion to $7 billion added down the road. As Salmon says, that's more than enough to just buy the General outright, essentially turning it into an employee-owned company.

[Source: Seeking Alpha]

It's not a completely original idea, as Salmon points out. The Wall Street Journal brought up the idea back in 2006, but suggested the Union own only a piece of the biggest U.S. car builder. The WSJ said the prospects of part ownership by the UAW would be enormously complicated with tax, legal and managerial problems.

But Salmon thinks full UAW ownership would simplify much of that and end up benefiting both the company and the workers. After all, if workers directly benefit from their performance then surely the quality of their work would improve, and the chance of a union-led strike would be almost nil.

Salmon, though, says the UAW instead should take its newfound cash and invest it wisely, U.S. automotive companies not being one of the better choices.

Though not likely to happen, UAW ownership of GM is one of those intriguing what-ifs that can keep us automotive fans talking for days. So, what do you think? Should the UAW write a check for GM?

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    • 1 Second Ago
      • 8 Years Ago
      It would help Ford and Chrysler out. The UAW will finally realise the amount of money a company needs to remain competitive.
      • 8 Years Ago
      Jeff Johnson,get a life.......as a millwright/welder/crane operator for 37 years, I've moved more equipment in 1 year than you whould in a 1000.....as a UAW tradesman...GM stock has been up-graded to buy by Merrill Lynch and the MACD trend is above the signal line...Look for the stock to be around $55 to $58 by the end of the year....
      • 8 Years Ago
      bloodsuckers need hosts
      • 8 Years Ago
      With GM's current turn-around of quality desirable vehicles it would be a shame to let a Union run a car company into the ground.
      That's if they screwed up.

      Otherwise this would be a very intresting experiment.
      One that I'm sure we'd all follow with the greatest interest.
      • 8 Years Ago
      The inmates running the asylum? No thanks. I like GM and i hope they stick around. That sure won't happen if the UAW is in charge.
      • 8 Years Ago
      Think Harley.
        • 8 Years Ago
        Harley was bought by a group of previous management, not the IAMAW Union. They just had a strike at Harley last Feb.
      • 8 Years Ago
      Im sure UAW love their position right now. This though will be precedent of all other companies not to have UNION in their company, especially if that union is spelled UAW. GM n FORD will fall and those UAW workers will have to look for another company to destroy.
      • 8 Years Ago
      That will be prevented by contract. Who needs another United Airlines?
      • 8 Years Ago
      employee-owned. then they might have to hold themselves accountable.
      the horror! the horror! the horror!
      • 8 Years Ago
      without pointing fingers, it did'nt work at the non-existent Saturn plant.
      • 8 Years Ago
      the UAW buying GM, I wonder if it could be a move to resell GM to another carmaker? Between that and Kerkorian's idea of merging GM with Renault-Nissan last year http://www.autoblog.com/2006/06/30/kerkorian-merge-gm-with-nissan-renault/ I wonder which one is the less evil? (and there this article from mid-September mentionning Ghosn still see some tie-ups with GM in a more long-term http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-19607286.htm )

      Btw, does Harley-Davidson is still runned and directed by his employees?
      • 8 Years Ago
      If UAW owned GM,
      1. Could they afford to fund their own health plan?
      2. Who would they fight with at contract time?
        • 8 Years Ago
        Interesting theory Mike. It would seem that the whole space/time morass would simply dissolve into morphed symbionic replication of of Bizzaroworld. It would be quite something to see the UAW choke up a honker for a change. The real question however, is what car model would be converted to use the flux capaciter?
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