The tax payers have basically given billions of dollars to the auto unions. We have been ripped off. The Obama Administration is so far in bed with the auto union that they are basically giving Chrysler to them. This is outrageous, and yet, you will hear not a word about in the mainstream news media. They are keeping the details, well at least the important details, from you. Of course you can always watch Glenn Beck on Fox News to get the important details like the ones in this video.
I have always said that the unions can only go so far in this country. That if they go too far, then they risk bankrupting the companies, and then they lose everything. This is what was called the backstop. It was the end of the road at which they could go no further with their demands, but now the government has taken this away. So what is the backstop now? Just how far can the unions now go?
With the union loving Obama Administration in charge now, I’m afraid that we have only seen the beginning of the unionization of America. The unions will no longer have to even negotiate with the companies anymore, because all they will have to do is just wait for the government to step in and give them whatever they want. This is not good for America. If this is not stopped, then America is headed down an economic road that some day even the unions will regret going down, well, at least the union members will.
jbranstetter04
Plan Gives Unions Majority Stake in Chrysler
April 29, 2009
Patrice Hill–The Washington Times
To avoid a bankruptcy of Chrysler LLC at the end of the week, the Obama administration is trying to push through a deal that gives the automaker’s unions majority ownership — a deal that could blow up if the company’s lenders reject it.
The administration moved to put its labor allies in the driver’s seat a day after General Motors Corp. announced a restructuring plan that would give the government majority control of the auto goliath in exchange for wiping $27 billion of taxpayer loans off the books, while GM’s unions would get a 39 percent stake in the company.
The fate of Chrysler, a storied American company and global industrial giant, could be largely decided this week in response to what appears to be the government’s final offer. The future shape of GM, if government deadlines hold, will be decided within a month.
The Chrysler plan was panned by corporate and financial analysts as a bad deal that would not prevent the company from either going bankrupt or getting bailed out by taxpayers.
“Looks like unions win, bankers lose,” said Jack Welch, former chief executive of General Electric Co., whose widely followed management style made GE one of the most respected companies in the world when he ran it from 1981 to 2001.
The pending proposal for Chrysler eventually would give the United Autoworkers Union a 55 percent stake in the company. That would exceed even the 35 percent share eventually given to Fiat, Chrysler’s purported partner whose agreement to the deal will be critical if the company is to stay afloat. Chrysler’s secured bank lenders would get no more than a 10 percent stake along with $2 billion in cash to expunge nearly $7 billion in debt.
While the company’s biggest lenders appear to have agreed to take the cash, dozens of smaller lenders still have not signed off on the deal and still could force the company into bankruptcy. The administration has given the company a Thursday deadline to complete agreement on the restructuring deal.
Mr. Welch said the auto companies would be better off getting out from under government control and going bankrupt. They would be able to get a fresh start as new companies that would be free of debt and free of union constraints that have hobbled the American car companies and made them uncompetitive with foreign manufacturers.
http://www.hispanicbusiness.com/news/2009/4/29/plan_gives_unions_majority_stake_in.htm
Duration : 0:2:32
(more…)
Technorati Tags: administration, Autoworkers, Bailout, bankruptcy, Beck, billions, Brokered, Chrysler, Deal, dollars, Glenn, in, labor, loans, Majority, obama, Stake, Swindled, Taxpayers, The, Unions, united