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Rob
05-05-09, 07:25 PM
UAW raises objection to GM restructuring plan

May 5, 2009 - 2:31 pm ET
UPDATED: 5/5/09 5:50 p.m. ET

DETROIT (Reuters) -- The UAW is calling on the U.S. government to reject General Motors' latest restructuring plan, saying it would cut U.S. factory jobs and clear the way for increased imports from plants in Mexico, Korea and China.

The objection by the union, which could own 39 percent of a restructured GM, underscores the deep problems that the No. 1 U.S. automaker faces in satisfying the demands of all of the parties with a stake in its effort to stay out of bankruptcy.

"The UAW urges you to join with us in expressing your opposition to GM's plans to close factories and eliminate jobs in the United States while it is increasing imports from other countries," Alan Reuther, the UAW's chief lobbyist, said in an open letter to U.S. lawmakers dated Monday.

After weeks of consultation with the Obama administration's autos task force, GM announced a new restructuring plan in late April that set aggressive targets for reducing debt, closing plants and eliminating about 21,000 factory jobs.

GM has used the plan as the basis for a debt exchange it has launched in an attempt to slash debt owed to bondholders by at least $24 billion in exchange for offering its bond investors a 10 percent stake in a new company.

A committee representing bondholders has objected to those terms and asked for a majority stake in a new GM instead.

With the two sides so far apart and less than a month remaining until the June 1 deadline for GM to complete a restructuring out of court, many analysts have concluded that the automaker will have to be put into Chapter 11 along with its smaller rival Chrysler LLC.

But in the case of Chrysler, the Obama administration had won agreements from the UAW and banks and lenders representing most of that automaker's secured debt before filing for bankruptcy protection.

By contrast, Reuther's letter to U.S. lawmakers shows how far apart the union and GM are on the basic question of what a restructured company should look like and where it should be manufacturing after the restructuring process is completed.

GM and the UAW are set to resume talks May 7 on a cost-cutting contract, Bloomberg News reported today, citing people familiar with the process,

The two sides stopped negotiating on Feb. 13 because of disagreements over cuts to a retiree health-care trust, or VEBA, the news service said. They later agreed on such issues as bonuses and unemployment pay without resolving the health-care issue.

Plant closings

GM has said it will close 16 plants, including four assembly plants, taking its UAW-represented work force to about 40,000 by 2010.

But Reuther said that GM planned to make up for that lost production by nearly doubling the number of vehicles it would import from Mexico, Korea, Japan and China.

"The overall number of vehicles that GM will be importing in 2014 represents the production of four assembly plants, the same number that GM plans to close in the United States," he said.

GM, which has been kept afloat with $15.4 billion in emergency federal loans since the start of the year, should be "required to maintain the maximum number of jobs in the United States" as a condition for any further assistance, Reuther said in the letter, which was posted on the UAW Web site.

A GM spokeswoman could not be immediately reached for comment.

Reuther said the UAW expected Chrysler's restructuring to be completed in bankruptcy within 60 days, as predicted by Obama administration officials.

The alliance between Chrysler and Italy's Fiat S.p.A. is expected to create 4,000 new U.S. manufacturing jobs as the Italian automaker fulfills a pledge to build a small car in an existing Chrysler plant, Reuther said.

6 Shooter
05-05-09, 08:11 PM
You need to have products the public wants and build them so you are globally competitive or your freaking history! ;squint:

L8TR - D

killain
05-06-09, 04:52 AM
I'm absolutely floored by this item. Do these people realize what is on the line? I've never been a fan of the UAW's Mr. Gettlefinger, but does he really think there is a Choice Here? So here's my message to Mr. Gettlefinger = Union has members Vs. company closes and all workers are laid off, Union has NO members? Pick one !

LLC5
05-06-09, 08:25 AM
So what is the UAW going to do if their demands aren't met, recommend to go on strike?


Nothing the UAW has done in the past is helping keep jobs in the U.S., their actions have only helped the Big Three justify out sourcing those jobs. When are the UAW and it's members going to wise up to that fact?

Yoda
05-06-09, 08:57 AM
:ohnoes

A committee representing bondholders has objected to those terms and asked for a majority stake in a new GM instead.

But in the case of Chrysler, the Obama administration had won agreements from the UAW and banks and lenders representing most of that automaker's secured debt before filing for bankruptcy protection. :eek :ugh ;squint:

Sounds like the UAW is calling in it's "Marker" AND Jar Jar Obama is trying to fulfill his UAW "Marker" he got during the campaign, and screw the stock holders :mad :bash

Bud

Kid_Again
05-08-09, 07:09 AM
I see that this morning's news is that the restructuring plan has GM doubling offshore production. As Robert Reisch says, "Exactly why did we bail out GM?"



GM - Proudly made in China.

Meanwhile, Ford just keeps getting stronger. At least they had the sense to move Bill Ford out of the way. Maybe 3 valves per cylinder isn't such a bad idea after all.

ken mohr
05-08-09, 07:50 AM
what is the difference if GM closes or moves all plants out of the country. I think it needsd looked into.

killain
05-08-09, 12:51 PM
I should be a little more clear, I think if the UAW has to take massive cuts, It should be felt by the executives and the white collar employees as well. Rick Wagoner was pulling down $16.5 million a year, with 15 million dollar bonus every December. The President of the United States only makes $400.000 a year? If saving this company is going to work, EVERYONE needs to be on-board !

Don Strausburg
05-08-09, 01:16 PM
The greedy unions have been responsible for losing more jobs than they have ever created. The only people who make out are the big salaried union execs and not the union members. All the union members do is keep lining the deep pockets of the execs. Maybe some day the union members will wake up and realize how long they have been taking it up the pants.:mad