Ron Gettlefinger, head of the UAW, thinks the auto companies are worthless:
The UAW is set to receive a 55% stake in Chrysler through its union trust fund once that automaker emerges from bankruptcy. The trust fund will also likely get up to 38% of GM's stock as part of its reorganization.
But that doesn't mean the union will be calling the shots at either company. In fact, UAW president Ron Gettelfinger said the union hopes to sell its stake in both companies quickly because he is more interested in raising cash to cover retiree health care costs than having an ownership stake in GM (GM, Fortune 500) and Chrysler.
"Let somebody else take the stock. Give us the money," Gettelfinger said at a recent press conference. "We are trading debt for equity, and what is the value of the equity? Let's be honest, it's zero today."
So, they have an offer for large blocks of stock they think are worth zero. As they are the union that dominates the cost structure at those companies, they can make it happen. Takers?
this is gold, jerry. gold.
fuckin leeches just want the money. chrysler 55% unions 30% obama. this will be a sight to remember. the new 21 century trabant in the making. hybrid plug-in. fiat will contribute the breakthrough technology of fiat 850.
The UAW is a dinosaur. They want to go back to taxing consumers and shareholders to support compensation above marginal product of labor, but that era is over. Consumers can now buy imports and avoid the UAW tax (forcing GM, Chrysler owners to eat the it). Investors can avoid the tax by investing in something else. There is no private entity left for the UAW to tax. Game over. The UAW's best hope is to use their political muscle to start taxing the taxpayer, and my fear is that this last strategy might work.
"They want to go back to ... compensation above marginal product of labor, but that era is over."
And the marginal product of investment bank employees over the last 12 months is...? Or are finance guys different somehow?
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