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To: Peter V who wrote (170769)	12/12/2008 12:46:53 AM
From: Sr K	Respond to of 306849

>>I'm assuming the pensions would be toast<< not for GM

To: Peter V who wrote (170769)	12/12/2008 3:10:27 AM
From: XoFruitCake	Respond to of 306849

"So who knows labor law? Can the autos throw out the collective bargaining agreement if they declare BK? I'm assuming the pensions would be toast, but it would be poetic justice to throw out the UAW." yes, they can reject all the contracts including labor contract that is not favorable to the company. And the damaged parties can submit their claim in BK court following a strict order of priority of who get what. Pension will be passed to government with a cap on the benefit. Health care for retiree is out of luck. And UAW may not be out yet. If Big 3 want to operate in bankruptcy, they will still need to deal with union for a new contracts. The big saving is the retiree health care and pension liability move to government. Big 3 can start from scratch again. The risk is suppliers and dealership may go to bk as well since all the money owe them before BK is a claim now. And the suppliers and dealers may not have enough cash to operate if they cannot collect what big 3 owe them in a timely fashion.. It is going to be a big mess and take at least 2 - 3 years to sort it out. And anyone bullish in stock market can kiss their money goodbye for a while (stock market will be back but will take a lot longer)..