Chrysler/UAW Agreement Gives Union 55 Percent Share of Automaker
Less than a day after the UAW, Chrysler and Fiat agreed upon the terms of a contract that would keep the struggling U.S. automaker afloat, details of the agreement have surfaced in which the union will take a controlling share in Chrysler.
At first it seemed almost too good to be true that all sides had reached an agreement without the need for decreased wages. Instead the agreement stipulated that Chrysler would significantly reduce its participation in the employee retirement program.
The agreement came just days after a similar agreement had been reach between Chrysler Canada and the Canadian Auto Workers union - an agreement that was ratified the same day Chrysler and the UAW put together the current proposal.
Now word has leaked that in exchange for Chrysler's reduced payments to the company's retirement plan, the company had to essentially hand itself over to the union. In total, the UAW will get a 55 percent stake in the planned Chrysler-Fiat partnership, with Fiat initially taking a 20 percent share, with up to 35 percent ownership possible if certain conditions are met.
The agreement now has to go before Chrysler's 26,000 workers, with voting on Wednesday in order to ratify the agreement ahead of the government's end-of-month bankruptcy deadline. If the deal is reached and Fiat signs on, the Federal Treasury will provide Chrysler (or should we say the UAW) with $6 billion to keep the automaker afloat.
Meanwhile, one other major player (which has been incredibly quiet during this ordeal) has agreed to remove itself from the situation. Daimler will shed its 20 percent stake in Chrysler and rethink ever working with a U.S. automaker again.
Chrysler = Them greedy union bosses will just hack up the company and sell it off for their own money. I hear GM might be going to a similar route too.
Might not be as bad as you think, look at it this way, now the people building the cars have a vested interest in actually keeping the company profitable, that could tie in well with a more successful future should Chrysler survive.
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Every union in the world is the problem. There is absolutely no reason for the rates these people earn. And it is the unions fault. The union has run every business it is attached down. There is always a breaking point, and union has found it. I hope they fold and lose everything they got. I just hope the chrslyer and gm don't go with them.
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title is also misleading...
the union doesn't have a 55% stake. their HEALTH CARE FUND has a 55% stake. so basically if chrylser goes tits up their retired peeps will get it the worst. the rest will just be out of jobs (and healthcare. but hey, they can all get new ones of both. )
Every union in the world is the problem. There is absolutely no reason for the rates these people earn. And it is the unions fault. The union has run every business it is attached down. There is always a breaking point, and union has found it. I hope they fold and lose everything they got. I just hope the chrslyer and gm don't go with them.
Yeah, it's all the union's fault, and it's also because autoworkers make to much money. Explain this to me genius, why aren't the Ram trucks that are built in Mexico sold cheaper to the public since they are making much less money per hour. They could cut an autoworkers pay in half, and the price of the automobiles would stay the same. I'm gonna go out on a limb and say you're a republican since your obviously anti-union, and anti-middle class. However, it's seems odd you tell the autoworkers that they make to much money. Sounds pretty socialist to me.
Yeah, it's all the union's fault, and it's also because autoworkers make to much money. Explain this to me genius, why aren't the Ram trucks that are built in Mexico sold cheaper to the public since they are making much less money per hour. They could cut an autoworkers pay in half, and the price of the automobiles would stay the same. I'm gonna go out on a limb and say you're a republican since your obviously anti-union, and anti-middle class. However, it's seems odd you tell the autoworkers that they make to much money. Sounds pretty socialist to me.
a car that has the same sales price and is cheaper to make means that the company makes more profit. profit prevents companies from going bankrupt. i know its a tough concept and i guess you have to be a republican to handle it. what a shame.
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My bet is that the UAW will dump the stock as fast as they can to make some money. Its better to sell it now then to hold on to it and if God forbid Chrysler goes under, so will their holdings by the UAW.
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a car that has the same sales price and is cheaper to make means that the company makes more profit. profit prevents companies from going bankrupt. i know its a tough concept and i guess you have to be a republican to handle it. what a shame.
Like I said in the first place. People are quick to blame the UAW for the mess that the big 3 are in. But like you said "cheaper to make , means more profit" Duh. But it's not the fault of the UAW, and there wage.
Last edited by Brian87gt : 05-19-2009 at 09:58 PM.
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Chrysler/UAW Agreement Gives Union 55 Percent Share of Automaker
Them greedy union bosses will just hack up the company and sell it off for their own money. I hear GM might be going to a similar route too.
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