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Thread: Chrysler Bankruptcy

  1. #1
    Super Moderator UGLY's Avatar
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    Default Chrysler Bankruptcy

    http://www.google.com/hostednews/ap/...OZrTQD97T57L00

    No surprise that this is happening. I thought they should have been able to fail a long time ago. The only thing that is a little fishy is that the UAW would receive 55% of the controlling stock under the Obama bankruptcy plan. Unlike a traditional bankruptcy which experts say the creditors would have the controlling shares. If Obama is pulling strings here to eliminate the autos ability to restructure the union contract it is total bunk.

  2. #2

    Default Re: Chrysler Bankruptcy

    The only thing that is a little fishy is that the UAW would receive 55% of the controlling stock under the Obama bankruptcy plan. Unlike a traditional bankruptcy which experts say the creditors would have the controlling shares.
    Being that I am not a union expert nor an expert in labor law, I will not claim to know exactly what is the deal here. However, I will go out on a limb and say that if the UAW has a lot of pension money tied up in Chrysler, that would in essence make the UAW members creditors as well.
    Your ignorance is painful to witness.....

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    Super Moderator UGLY's Avatar
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    Default Re: Chrysler Bankruptcy

    The union has no money invested in the company. The creditors and share holders have the money invested and are owed. In the real world this would have not happened. What will be interesting is how the UAW negotiates with itself. WIll they continue to kill the company or woll they try to make a profit and help the company succeed.

  4. #4

    Default Re: Chrysler Bankruptcy

    So you are saying the Union or the union workers have no pension funds that are tied up in the company's hands?
    Your ignorance is painful to witness.....

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    Default Re: Chrysler Bankruptcy

    Sounds like someone needs to know something about Marx. Yeah, those big, bad unions caused the downfall of the auto industry and, conversely, the auto workers made no real contributions to the company: money, labor, or otherwise. Only capitalists provide capital.

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    Super Moderator UGLY's Avatar
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    Default Re: Chrysler Bankruptcy

    How much capital do you think the UAW has in Chrysler? The pensions are funded strictly by the company not the union. It is a pension not a 401k or contribution plan.

    Yes Marx, what was it he said. From each according to his ability to each according to his need. Sounds like a winning philosophy. The workers are a vital part of the company but when the pensions and legacy cost choke the ability of the company to make money they are hurting themselves by not giving back a little. The CEO's are at fault as well they should have never gave into the UAW's demands.

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    Default Re: Chrysler Bankruptcy

    Yeah, I can see it now: those union bosses marched into the CEO offices, put them in a headlock, and made them give in to their demands.

    Quote Originally Posted by Ugly
    Yes Marx, what was it he said. From each according to his ability to each according to his need.
    Marx said more than that. He had a theory on how capitalism worked.

  8. #8

    Default Re: Chrysler Bankruptcy

    Quote Originally Posted by UGLY View Post
    The workers are a vital part of the company but when the pensions and legacy cost choke the ability of the company to make money they are hurting themselves by not giving back a little.
    They renegotiated a their contract in 2007 to bring legacy costs in line with what foreign automakes pay.
    There's no such thing as a pretty good aligator wrestler.

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    Super Moderator UGLY's Avatar
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    Default Re: Chrysler Bankruptcy

    Quote Originally Posted by matclone View Post
    Yeah, I can see it now: those union bosses marched into the CEO offices, put them in a headlock, and made them give in to their demands.



    Marx said more than that. He had a theory on how capitalism worked.
    I know he had a theory on capitalism and his theories really helped Russia didnt they.

    I agree the CEO's are to blame for giving into to the unions. They should have let those people who struck go and hired new employees who were more reasonable in their demands. It is not debatable that the union and the costs associated with the collective bargaining are killing the American auto industry.

    Giving the UAW the controlling interest in the company is funny. They will be negotiating against their own interest. On one hand they stand to make a lot of money with their shares if Chrysler pulls out of this. How much money will the workers see from dividend payments I wonder? What happens when the UAW sees how their demands are crushing the ability for Chrysler to make a profit and pay for the legacy cost and other pension related perks?

    I personally dont see how a bankruptcy judge lets this go through like it is. We will see.

    A side note the UAW will also ger 26 or 36% share of GM.

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