UAW Pres Warns of Big 3 Chapter 7 Liquidation

CNBC ^ | November 15, 2008

[pleikumud]

United Auto Workers President Ron Gettlefinger said it is critical the Big 3 receive a financial aid package from Congress to avoid one or more of Detroit's auto makers from sliding into a Chapter 7 bankruptcy.

[mamelukesabre]

Scuse me?

Chrysler paid back their “bailout” with interest ahead of the due date. I’d say they’ve earned another “bailout”.

[mouser]

Just google general motors job bank that will lead you to tons of articles about union people paid not to work and not just a few but thousands of them.

That nonproductive cost has to be added to every car and truck they sell.

STUPID

[FrankR]

"move south and if the parasitic union workers want to follow they can and work in right to work states. "

Nahhh, we don't want them down here...they're the types that would just cause trouble.

[ImJustAnotherOkie]

It’s pretty damn hard to feel sorry for any Obama supporter.

[MIT-Elephant]

“What are my rights as the owner of a business? Do the rights of these Unions trump the rights of the Business owner? I never understood why owners didn’t just boot Unions to the curb.”

If I ran a business that was beset by some card-check bogus union organization process, I’d tell them to kiss off and sell my business. The cost of compliance is not worth it for most of these labor/enviro/zoning laws.

[exDem from Miami]

I don’t see a problem with Chapter 11 bankruptcy for the Big 3. It works for the airlines - all the time.

[PapaBear3625]

Chapter 7 Bankruptcy would involve the liquidation of the company, and the acquisition of the assets by some other entity or entities. As the old company would no longer exist, all UAW contracts would go up in smoke, all UAW workers would be instantly unemployed, etc.

I think it would be a fine solution. Ship all the equipment to Tennessee or some other right-to-work state. Or force Michigan to become a "right-to-work" state in order to keep things there.

[CharacterCounts]

GM will never go into Chapter 7 bankruptcy. It just does not work that way. Much more likely, some investment group will purchase GM under a new corporation and immediately file for Chapter 11 protection. This permits them to strip UAW contracts to the bone.

[jimbo123]

[ConservativeMind]

Who is buying their cars now to help those suppliers?

They have already declined if they were tied to the Big 3.

[MIT-Elephant]

This is a good reason to make sure _your_ retirement is _your_ money - and not some promise-pension linked to a company that might collapse before you drop off the earth.

In my field (technology) it’s not a big deal since people change jobs so much, but for more ‘stable’ occupations they might still be on the old model.

[Diego1618]

Why would you keep a company around that produces products that no one wants to buy?

The problem being....of course....they sell enough of their crap each year to crawl into the next.

If the American taxpayer were indeed upset about his tax money being used in this disgraceful manner....and wanted to eliminate these union infected dinosaurs once and for all.... they would buy Toyota, Honda, B.M.W. and other quality vehicles and implode this relic. Maybe what would come out of the ashes would be leaner and meaner.

It's simple folks....don't buy G.M., Ford or Chrysler.

[longtermmemmory]

ok NOW we know he is just posturing.

the UAW is TERRIFIED of chapter 11.

IF GM comes out stonger without the union, then the UAW is toast.

(remember Patco?)

[Brilliant]

There is too much capacity in this industry. Someone has got to bite the big one. It should be Chrysler.

[Lou Budvis]

Let’em burn baby burn. Make those bloated, overpaid UAW drones compete with illegals for jobs at Mickey Ds. Going thru BK will not destroy the American auto industry. It will make it more competitive. Plus, it not as though the need for cars will stop. There will always be a demand, hence the overall industry will survive.

[irishjuggler]

Why would you keep a company around that produces products that no one wants to buy?

Why would you want to keep companies around that are unable to produce products PROFITABLY? Clearly, a lot of people do want to buy GM, Ford and Chrysler products. They all sell hundreds of thousand of vehicles (if not millions, in the case of GM) every year. The problem is the UAW. The union badly diminishes the competitiveness of American automakers in terms of labor costs and also innovation (e.g., certain plants have to be kept open just to placate the union). Let 'em go bankrupt, I say. If the American automakers get the union contracts off their backs, they'll do fine.

[right way right]

I want my PIE!

[plain talk]

Maybe they want another job bank :-)

http://www.detnews.com/2005/autosinsider/0510/17/A01-351179.htm

[John 3_19-21]

The fix is already in.
The big three will get their money whether you or I agree with it or not. Our elected representatives decided a long time ago to take Americas’ prosperity and go global. And when Obi wan gives the unions open voting they will encourage even more companies to move out of the country.

[longtermmemmory]

Just remember the managment capitulated to unions in part to avoid an extended recovery that would have been needed to outlast the unions.

The more the UAW screams no Bankruptcy, the more I think Chapter 11 REORGANIZATION is just the medicine for this ill.