Federal loan conditions: UAW can't strike against GM
Besides accepting a reduction of wages and benefits for workers to bring them in line with what foreign-owned plant employees receive, the UAW will not be allowed to strike against the General as long as GM is receiving federal loans.
While the U.S. Treasury undoubtedly has a lot of conditions for the $13.4 billion in loans to GM, the details weren't fully disclosed until GM filed the documents with the SEC. Striking is one of the conditions that would cause a default on the loans, allowing the Treasury to recall the loans and force GM into bankruptcy. Yikes. GM will have until Dec. 29, 2011 to pay back the loan and the no-strike clause will remain in effect through September 2011.
[Source: Detroit Free Press]
- Most and least efficient car companies
- Fastest-depreciating cars in the United States
- Find and compare 2017 Models