Union ownership stake in GM and Chrysler

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Union ownership stake in GM and Chrysler

Post by SonomaCat » Tue Apr 28, 2009 1:51 pm

From what I have read, it sounds like there is a good chance that, in return for a big haircut on contributions to the union pensions/retirement health care plans, the UAW may receive shares of common stock in the companies.

This is an incredibly interesting, and in my opinion, positive development. I am a huge fan of the alignment of the interests of employees and management, and employee ownership in the best way I can see to achieve this (thus my fondness for the tech industry, which was largely built on the concept of stock options for employees).

If Chrysler and GM emerge from this as healthy companies that are largely owned by the UAW, this will present some fascinating scenarios going forward. At that point, the UAW will be very motivated to see these companies be as profitable as possible. Will they ever threaten to strike ever again? Not unless they're stupid. Will they be more reasonable in negotations, knowing that tensions might hurt the stock price and their own wealth? I assume so.

In a roundabout way, the auto industry might be catching up with the tech industry in terms of management/employee relations, and it will be interesting to see what becomes of the UAW as a result.

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Re: Union ownership stake in GM and Chrysler

Post by HelenaCat95 » Tue Apr 28, 2009 1:53 pm

I have read that as well.
Conceptually I agree with you in that it is a positive step.

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