GM to declare bankruptcy on June 1st (wages, salary, health care)

[HubbleRules]

In a way this is very sad news...

An American Icon is declaring bankruptcy... GM - which once had over 50% of the US auto market - which built such classics as the Camero, Firebird... will be filing for bankruptcy on Monday - under terms that will be disclosed over the next few days...

GM will form a new corporation with it's 'healthy' assets - and the US government will initially own 72.5% of the new company... the UAW (thru VEBA) will initially own 12.5% and 10% will be given to the 'OLD GM' and will be taken by bondholders during the bankruptcy process. The bondholders will also get warrants to buy up to 15% of the 'new' GM over time.

Pretty sad ending for a company that was mis-managed and where the union got too powerful and asked for too many perks and work restrictions - but a managed bankruptcy is the ONLY way GM can survive...

A classic unmanaged Chapter 11 (without government support) would probably have ended in complete liquidation of the company.

General Motors to reportedly file for bankruptcy on June 1 - Update

[Theliberalvoice]

Any links that say Gm will declare bankruptcy?

Today I read that the deal with bond holders was getting stronger.

[padcrasher]

and where the union got too powerful and asked for too many perks and work restrictions


Pure myth.

The truth is, wages for UAW members range from about $14 per hour for newly hired workers to $28 per hour for assemblers. And they get insurance as well for their families.

In past Months wingers have been passing this $70 per hour w/benefits line that is pure bunk.


The reason American car makers are not making money is because health care cost in the USA are so outrageous. Yet another reason for univeral healthcare.

[HubbleRules]

Originally Posted by Theliberalvoice

Any links that say Gm will declare bankruptcy?

Today I read that the deal with bond holders was getting stronger.

Check the link I posted above... this site has usually been a reliable source of economic/business headlines.

[Theliberalvoice]

Originally Posted by HubbleRules

Check the link I posted above... this site has usually been a reliable source of economic/business headlines.

Damn. For some reason it did not appear the first time.

But yeah, it is so sad to see these companies go.

[parfleche]

Originally Posted by padcrasher

and where the union got too powerful and asked for too many perks and work restrictions


Pure myth.

wish i could sit on my a$$ at a job bank at full pay doing nothing. lifetime pension and healthcare spouse included. wearing my uaw hat not a gmc hat or be labeled a company man almost as bad as a scab. it will be funny when the uaw strikes against itself.

[padcrasher]

Originally Posted by parfleche

wish i could sit on my a$$ at a job bank at full pay doing nothing. lifetime pension and healthcare spouse included. wearing my uaw hat not a gmc hat or be labeled a company man almost as bad as a scab. it will be funny when the uaw strikes against itself.

Yes I agree. I hope you and your family have healthcare benefits for the rest of your life. And I'll be happy to pay more taxes for a single payer universal system to do it. One bonus, at least our employers will not have to provide insurance for us as the government will take care of that.

[starlite9]

Well with the Government running them, it will only get worse.

I guess I have bought my last GM and Chrysler cars that were new.

Ford is now going to be my last option for one of the big three.

[HubbleRules]

Originally Posted by padcrasher

and where the union got too powerful and asked for too many perks and work restrictions


Pure myth.

The truth is, wages for UAW members range from about $14 per hour for newly hired workers to $28 per hour for assemblers. And they get insurance as well for their families.

In past Months wingers have been passing this $70 per hour w/benefits line that is pure bunk.


The reason American car makers are not making money is because health care cost in the USA are so outrageous. Yet another reason for univeral healthcare.

I actually support unions - but in the case of the UAW - they extracted too much from a company - even knowing that their demands were putting the company at risk of failure...

The 'excesses' I am talking about are things like the 'jobs bank' - where idled workers would get up to 95% of their salary for 2 years - and not have to do any work to get it... The health care and pension benefits for retirees were also clearly unsustainable - and everyone knew that 10 years ago - when there was still time to renegotiate contracts...

This is an interesting link that argues the UAW must change more in order for the Big-3 to survive: Supply Chain News: Is the UAW Really at the Root of US Automakers Woes?

[bgibbs42]

Gummit Motors will file.