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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (307537)	5/29/2009 12:31:15 PM
From: miraje	2 Recommendations Respond to of 793717

Eventually, the government hopes, GM can return to profitability, which would allow the government to sell its GM stock. But the risks for taxpayers are daunting, with U.S. auto sales near their lowest level in 27 years. I doubt that profitability for GM is going to happen, the way the dice have been cast. GM's profit comes from selling the kind of cars and trucks that the latest CAFE standards are going to kill off. GM can't make tiny econoboxes in the US that will sell for a profit. And the UAW will attempt to block any new econoboxes from being built and imported from places like China. It will be interesting to watch the battle between two of the Dems major constituencies, the greedy unions and the "global warming" econuts. They both can't have their cake and eat it, too...

To: LindyBill who wrote (307537)	5/29/2009 1:51:09 PM
From: FJB	Read Replies (1) \| Respond to of 793717

UAW members approve General Motors concessions United Auto Workers members vote 74 percent in favor of concessions to General Motors Kimberly S. Johnson and Tom Krisher, AP Auto Writers On Friday May 29, 2009, 1:43 pm EDT DETROIT (AP) -- Members of the United Auto Workers union have ratified a package of concessions designed to reduce General Motors Corp.'s labor costs. UAW President Ron Gettelfinger said Friday that 74 percent of GM's production and skilled-trade workers voted in favor of the deal. The vote comes before an expected Chapter 11 bankruptcy protection filing by GM on Monday. Bankruptcy experts say having an agreement in place before the filing will help move the process through court more quickly. THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below. DETROIT (AP) -- A package of concessions designed to reduce General Motors Corp.'s labor costs appeared headed for approval by union members Friday with workers at at least seven factories overwhelmingly approving the deal. The vote comes in advance of an expected Chapter 11 bankruptcy protection filing by GM on Monday. Bankruptcy experts say having an agreement in place before the filing will help move the process through court more quickly. United Auto Workers members at factories in Spring Hill, Tenn.; Janesville, Wis.; Lordstown and Toledo, Ohio; and Orion Township, Pontiac and Lansing, Mich., all voted in favor of the deal. Voting at more than 40 GM facilities is scheduled to wrap up by 4 p.m. Eastern Friday. UAW leaders agreed to the revised contract last week that freezes wages, ends bonuses, eliminates noncompetitive work rules and ends the possibility of a strike until the next contract expires in 2015. It also gives a union-run retiree health care trust 17.5 percent ownership of a post-bankruptcy protection GM, with a warrant to buy another 2.5 percent. The trust will take on the company's retiree health care costs starting next year. The stock will come in exchange for part of the company's $20 billion obligation to the trust. GM has received $19.4 billion in loans from the U.S. government, which would get 72.5 percent ownership of the new company, perhaps sharing with the Canadian government. The remaining 10 percent would go to GM bondholders to wipe out $27 billion in unsecured debt. Bondholders have until 5 p.m. Eastern Saturday to accept or reject the stock-for-debt offer, under which they would get a warrant for an additional 15 percent of the new GM's stock. Plans are for GM to emerge from bankruptcy with lower labor costs, far less debt and with fewer factories, brands, models and dealerships. Ray Wood, president of a UAW local at a Toledo transmission factory, said workers there voted 78 percent in favor of the new deal. Even workers at factories in Spring Hill, Pontiac and Orion Township that are under discussion for possible closure approved the deal. The lowest approval rate was 63.4 percent at the Pontiac truck assembly plant. "I believe that our membership understands. They get it," said Wood. On Monday, GM is to identify 14 assembly, parts stamping and engine and transmission factories that it plans to close as part of its restructuring plan, cutting 21,000 jobs.