Obama Administration tried to Kill GM Pension Plan.

I suppose that this shouldn't be a surprise given the number of "Chicago Boys" in the Obama administration.

Washington -- General Motors Corp. won't terminate its hourly pension plan, the United Auto Workers union told its members today -- a move that could have cost retirees thousands of dollars in lost benefits.

But the union disclosed that both the Obama administration and GM, during the course of negotiations aimed at restructuring the company, had sought to terminate the company's underfunded hourly pension plan.

"At various points in the process, the company, the government and other creditor groups argued that the pension plan covering UAW retirees should be terminated," the UAW said in a fact sheet urging its members to approve a labor concession deal.

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Unreal! 17.5% UAW equity stake, reduced

Submitted by on

That's worst than what a bankruptcy judge would do, no?

What about this?

Instead of a large equity stake in GM, the UAW was reduced to only 17.5%...

didn't the UAW make huge concessions earlier for a large equity stake and isn't this also a shafting of the auto workers?

As UAW fades, so does a path to U.S. prosperity

From Reuters: As UAW fades, so does a path to U.S. prosperity

 

DETROIT (Reuters) - For decades, unionized manufacturing jobs have been considered the surest path to middle-class prosperity and realizing the vaunted American dream for blue-collar workers.

The United Auto Workers helped make that dream a reality.

"We created the middle class in America," said Olen Ham, one of the few surviving members of the 1937 "sit-down" strike in Flint, Michigan, which won the first union contract with General Motors Corp.

Later contracts brought paid holidays, pension benefits and health insurance, enabling blue-collar workers to buy cars and homes and to send their children to college.

But the latest concessions by the UAW with automakers Chrysler LLC and GM will make the road to the middle-class much rougher to navigate for the next generation of workers.