Saturday, October 18, 2008
Does It Matter if The UAW Opposes Merger?
It does and it doesn't!
A merger between General Motors and Chrysler will mean massive job cuts and plant closings for Chrysler workers.The UAW can't or won't stop it, one thing is they don't have the membership and number two is that not all the VEBA money has been paid!
But both companies know if they close plants and then have to bring them back online a year or two they will save billions!
Under the new UAW agreement, new plants will have the second tier wage structure. Which means they can bring in a new workforce that will make half the wages of what current workers make,they will have little to no benefits and no pensions!
Well you don't have to be an ivy league lawyer to see the plan. From the get go Cerberus was looking a way to flip Chrysler.
It is an awful funny that Cerberus owns the majority stake in GMAC Financing,owns all of Chrysler and is selling Chrysler to GM. Well the financing arm of GM (GMAC) was really the only division the General Motors that was make GM money, until the credit crunch.
Was this whole "merger" scenrio created by Cerberus and GMAC 2 years ago?
Another big question is if this merger happens and thousands of jobs are lost,
what happens to all the VEBA money?
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