Federal loan conditions: UAW can't strike against GM
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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Reader Comments (Page 1 of 4)
Erik 3:07PM (1/09/2009)
AWESOME!!!! This is EXACTLY the sort of string we need attached to these loans!!!
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Bryan 3:10PM (1/09/2009)
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.
SOF 4:08PM (1/09/2009)
Uh...don't celebrate yet. Sounds like the deal is still open to negotiation and union approval. Also, there is no mention of prohibiting behaviors like work slow-downs.
esteva03 4:18PM (1/09/2009)
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!!!!!
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Marko 4:44PM (1/09/2009)
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.
JM 5:09PM (1/09/2009)
This is all wrong.
The condition should be the UAW be abolished altogether and each union worker just become regular employees. That way if they're caught being lazy, doing a crappy job, clocking in at 8am, going back home, then coming back to the factory at 5pm to clock-out (yes a UAW worker that I know told me this used to happen sometime back before the auto industry tanked), or just simply complaining and grumbling all the time, then they can get fired. In the same manner, this gives them a strong motivation to try to do a good job or risk getting fired, just like everybody else who aren't unionized.
Hey don't blame me, this bail-out money came from tax-paying people like me. And doing this will produce a stronger and more competitive american auto workforce.
BrianW 5:26PM (1/09/2009)
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.
cFoo 7:58PM (1/09/2009)
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.
Nick 2:16AM (1/10/2009)
And what everyone fails to understand is once that other guy takes office he can change anything he wants.
Yikes 9:55AM (1/12/2009)
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.
jv2k 3:07PM (1/09/2009)
Nice speech bubble.
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Richard 3:07PM (1/09/2009)
Sweet!
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Eric Liberatore 3:08PM (1/09/2009)
That picture is the best one this year.
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Dude 3:09PM (1/09/2009)
So if the UAW strikes, GM goes bankrupt and gets to lose the dead weight that is the UAW?
Strike! Strike! Strike!
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Bryan 3:10PM (1/09/2009)
I like the way you think!
jv2k 3:15PM (1/09/2009)
Yes because the consumers will be lining up to buy cars from a bankrupt company.
jpm100 3:34PM (1/09/2009)
Bankruptcy doesn't get rid of the union. It will take away some of their benefits.
The membership itself and the organization don't go anywhere. Their ability to strike after a bankruptcy would actually be restored.
Jake B 3:34PM (1/09/2009)
Yes but bankruptcy will see the dissolution of the UAW. Basically, the UAW can strike, but they will be kissing their own butts goodbye in the process. GOOD CALL!
Mez Jr 4:01PM (1/09/2009)
Maybe this is a stupid question... but why doesn't GM and the rest of the US auto companies do what the foreign companies do? Refuse to hire unionized workers.
rypt 4:15PM (1/09/2009)
They can't, in Michigan the factories, once unionised, stay that way. They are unable to hire non union labour in that factory, they are unable to close that factory, and they are unable to fire workers... great isnt it?