• Jan 9th 2009 at 3:01PM
  • 51
Now that we've made it through the bailout hearings and the deal between GM and the U.S. Government has been settled (for now), we can start taking a closer look at the details. Oh, here's one: the Feds added one crucial condition to the GM bridge loans, and it was aimed squarely at the unions: no striking.
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]


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  • 51 Comments
      • 6 Years Ago
      Nice speech bubble.
      • 6 Years Ago
      "GM will have until Dec. 29, 2011 to pay back the loan "
      wow, so much for the 'pay it back w/in 10 yrs after graduation'

      does anyone else think this a not going to happen?
      everything I read and hear says it will take years for the car indusrty to recoup....
      how are they going to pay this back?
      • 6 Years Ago
      Awesome!
      • 6 Years Ago
      Yay!!! Now that you are asking taxpayers to bail you out, I will be damned if the UAW suck up $1 million + a day when they throw one of their hissy fits. Bush did something right.
      • 6 Years Ago
      The economy sucks right now. No one wants to be without a job right now. This is the PERFECT time to let the union strike! That way you can fire all union employees for missing work, and then become an at-will employer. They can even hire back ex-union employees. The "willing" will still have their jobs and the union problem is solved. Everybody wins!
      • 6 Years Ago
      Perfect. Now that takes care of some of the danger in GMs workforce. However, I would still let the workers strike and then GM can hire all non-union workers, eliminating that problem entirely.
      • 6 Years Ago
      That will change as soon as Obama takes office, I can assure you of that. Bush cares nothing about the workers of this country, he is one sorry piece of crap.
        • 6 Years Ago
        Sure. Obama is also going to make you taller, better looking, and rich.

        Reality is a bit@h, get ready for some. The dems in congress will surely try to make the bailouts (sorry, "loans") sweeter for the unions. But even obama knows there will be hell to pay if workers are striking while these completely insolvent firms are being propped up by taxpayers.

        GM is going to require years of gov't money to stay afloat. The days of the UAW as we all know it are numbered.

        12% of the working population is not going to get much sympathy from the rest of the working public, especially in a nasty recession.
        • 6 Years Ago
        And Obama is an idiot if he does change these stipulations. If Obama caters to the UAW it creates an unnecessary strata.

        The problem with essentially every social program over the years, is that its not equality to pick one group of people and lift them up over any others based on non-value functions.

        What makes auto workers so special that they can't be fired? Did you see the jobs report today? Why do UAW workers deserve immunity and computer engineers, or bakers don't, huh? Those people have just as much right to work (or not) as the UAW. Especially if there is no demand.

        You can't bail out everyone equally, don't bail out at all. That's just going to continue the resentment that clearly about 70% of Americans have against union workers.

        If your job dries up, you lose it. That's the other half of captialism that works. Because those who work hard and aspire and have good ideas will find a way back into the work force. Entrepreneurship is what made this country great. Lousy social programs is what makes lousy socialist countries lousy.
      • 6 Years Ago
      Sweet!
      • 6 Years Ago
      That must have like sweet music to the ears of GM's mgmt.

      I have a feeling that picture is spot-on llustration of Gettlefinger's face when he heard about it.
      • 6 Years Ago
      What I find funny is that people think this is a limitation on the UAW. Pensions are guaranteed already, and bankruptcy won't kill the union in any way, shape or form.

      All this does is give the union a nuclear and make already tense negotiations maddening.
      • 6 Years Ago
      I am no fan of unions in general, they did a lot of good way back in the early days when they were first needed to stand up for the little guy and no one else would, today they are not as necessary (IMO), so that said:

      First of all, if anything thinks this will mean the end of the UAW, think again. The union has a lot more money, lobby power, and is way more deeply entrenched they you or I know, they are not a giant influential establishment for nothing, and to think any single agreement will be their downfall is understimating their ability to surrvive. Remember, all it takes is the best attorney money can buy, and lots of money, and you can convince a court to rule in your favor, (OJ anyone?)

      Second, to those who say good job GW, good job GM, this could well be invalidated in courts. Just because uncle george and his capital hill clonies all wrote it, and GM signed it, does not automatically make it permenantly the law.(thank goodness for that in some cases of what they have passed in the last 8 years)

      The union will have 10000% the right, the time, and already have the cash, to fight this in court tomorrow if they so choose, and seeing as the courts have sided with labor over management in the past, this may well happen again, and thur striking down any such clause as thou cannot strike.

      Lastly, if you don't remember, the last major union vs. management whereby the combined power of many unions, many dollars, and a very good PR effort in the press crushed its management oponnent was U v. UPS, go back and look over that long '90s war in 1 year whereby they very carefully, very efficiently used the power of many different unions to build strike lines, scare workers into staying away from their jobs, put up a well defined effort in the media, kept the pension control when even some union employees were asking UPS to take it away, and did very little overall for workers at the end of the strike. Yes, the unions won more temp employees short term, but they were all laid off afterthe holidays anyways as everyone knew they would have been, so that battle was a lot more about pensions and money then workers rights.

      When money and life itself are on the line for any organization, union or not, it will fight to the death for survival, so as much as we all dont think they are doing the Auto industry a lot of good these days, dont think this will be a simple cure all policy to overnight hurt such a big and organized 'organization'.
      • 6 Years Ago
      AWESOME!!!! This is EXACTLY the sort of string we need attached to these loans!!!
        • 6 Years Ago
        Agreed. I was a little miffed that Bush seemed to be just GIVING money to the failed companies, but with these strings attached, I'm much more supportive of the deal. At least this will give the companies a chance to make the changes that are needed to return to financial stability. Eliminating the ability of the unions to strike while on the government dime will go a long way in that regard.
        • 6 Years Ago
        yeah it is wrong for people to strike. in my opinion unions only work for the people who dont work. if you are on time and do your job there is nothing to complain. anything that might be wrong to you can be taken care of by the layers and judicial system. this way workers work hard to not get fired and employers try hard to keep them happy so they dont get sued by the individual workers. self controlling system i say. but i am not an economist or a union worker so my word or opinion has not value at all.


        But there is something we can do!!!!!

        VOTE FOR AUTOBLOG AGAIN TODAY!!!!!
        http://2008.weblogawards.org/polls/best-major-blog/
        • 6 Years Ago
        YES!!! Well beyond the negotiations...at least this is going in the right direction. It is BS for Blue Collar Union workers to enjoy "guarantees" that white collar workers do not. Its not like a teacher's union where the funding is capped by governments.

        I'm in "white collar" research and development....we just made a 25% cut in our engineering personnel....where is our "guarantees"? How about those people who work for the Detroit 3 that are "white collar" who got laid off during those cuts?

        When you want a raise or better benefits, you work harder, smarter, or move on to a better opportunity....thats capitalism. You always have options....if you are not capable of working harder, smarter, etc....then those are the cards God dealt you sir.
        • 6 Years Ago
        So is the government going to let the big three import half their cars from cheaper countries like Japan and Korea?
        That's right those countries won't let them!
        Those countries protected their own market.
        You can bash and eliminate Unions all you want but unless the playing field is level, the big three will fail.
        • 6 Years Ago
        haha.....

        I really don't care if the UAW strikes or not. I will not even buy Tacomas, Matrix.....built by UAW labor.

        It is my way of strikiing against the UAW. They may have gotten our tax dollars, but that is the only way UAW built autos will ever see my money.
        • 6 Years Ago
        And what everyone fails to understand is once that other guy takes office he can change anything he wants.
        • 6 Years Ago
        WOW. The Senate is actually not as dumb as I thought. They're more in touch with the country then I've given them credits for. It's a brilliant move.
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