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Federal loan conditions: UAW can't strike against GM
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Filed under: Government/Legal, GM, UAW/Unions
Now that we've made it through the bailout hearings and the deal between GM and the U.S. Government has been settled (for now), we can start taking a closer look at the details. Oh, here's one: the Feds added one crucial condition to the GM bridge loans, and it was aimed squarely at the unions: no striking.
Besides accepting a reduction of wages and benefits for workers to bring them in line with what foreign-owned plant employees receive, the UAW will not be allowed to strike against the General as long as GM is receiving federal loans.
While the U.S. Treasury undoubtedly has a lot of conditions for the $13.4 billion in loans to GM, the details weren't fully disclosed until GM filed the documents with the SEC. Striking is one of the conditions that would cause a default on the loans, allowing the Treasury to recall the loans and force GM into bankruptcy. Yikes. GM will have until Dec. 29, 2011 to pay back the loan and the no-strike clause will remain in effect through September 2011.
Filed under: Government/Legal, GM, UAW/Unions
Now that we've made it through the bailout hearings and the deal between GM and the U.S. Government has been settled (for now), we can start taking a closer look at the details. Oh, here's one: the Feds added one crucial condition to the GM bridge loans, and it was aimed squarely at the unions: no striking.
Besides accepting a reduction of wages and benefits for workers to bring them in line with what foreign-owned plant employees receive, the UAW will not be allowed to strike against the General as long as GM is receiving federal loans.
While the U.S. Treasury undoubtedly has a lot of conditions for the $13.4 billion in loans to GM, the details weren't fully disclosed until GM filed the documents with the SEC. Striking is one of the conditions that would cause a default on the loans, allowing the Treasury to recall the loans and force GM into bankruptcy. Yikes. GM will have until Dec. 29, 2011 to pay back the loan and the no-strike clause will remain in effect through September 2011.
