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At present, the UAW union will own 55% of Chrysler !

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kentuck Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 07:28 PM
Original message
At present, the UAW union will own 55% of Chrysler !
This is historic. This would be the first time in the history of the nation that a union and its workers have owned majority interest in a large corporation. Will it work out?

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tabatha Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 07:32 PM
Response to Original message
1. I really hope so.
If they can control CEO salaries, that would be a huge win.

This is the opposite of shutting down the unions.
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marketcrazy1 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 07:34 PM
Response to Original message
2. thats great
:sarcasm: 55 percent of what? thats the question. and Fiat! not the strongest auto company out there and even THEY did not want Chrysler unless the government kicked in Billions. post reorganization Chrysler will be a fraction of what it was, I would not be shocked if it failed AGAIN within 24 months. but I guess 55 percent of something is better than nothing at all...............
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kentuck Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 07:36 PM
Response to Reply #2
4. I think the government (us) have agreed to put up $8 billion?
But not all at one time?
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Egalitariat Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 07:35 PM
Response to Original message
3. Are you sure about that? I thought one of the airlines did that in the 80's.
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bbinacan Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 07:37 PM
Response to Reply #3
5. IIRC
It was United Airlines and the deal fell through in 1989.
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marketcrazy1 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 07:43 PM
Response to Reply #5
6. Chrysler is shutting down all production
starting monday, to reopen when the bankruptcy is complete. they expect to emerge from bankruptcy August 28th... workers will collect up to 80 percent of their base pay during the shut down.... thats what I am hearing... funny they did not mention the plant closings until after the Presidents bankruptcy announcement.
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nilram Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 07:44 PM
Response to Original message
7. wow, good luck, workers!
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marketcrazy1 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 07:48 PM
Response to Reply #7
8. several parts suppliers
Edited on Thu Apr-30-09 07:49 PM by marketcrazy1
shut down production IMMEDIATELY upon notice of the Chrysler filing.. no work tomorrow for those guys either.......... of course THEY will not be getting 80 percent of THEIR base pay...... I guess they need a better union.
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unblock Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 07:55 PM
Response to Original message
9. i wouldn't call it "majority interest". it's "majority equity" and equity is crap in a bankruptcy
chrysler will be run by a board of directors and the union will have a seat on the board, but not control of the board.

it remains to be seen if and when and HOW chrysler emerges from bankruptcy. if the union actually CONTROLS the company, THAT would be worth celebrating! until then, my horses will remain firmly held.
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ProgressiveProfessor Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 08:11 PM
Response to Reply #9
14. Won't the union have 55% of the voting stock?
If they do depending on the corporate charter, they should have at least a majority on the board.
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glitch Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 08:24 PM
Response to Reply #14
15. Everyone of these new owners should watch the documentary "The Take" if they haven't already
About Argentinian tile workers taking over their factory after it was abandoned by the "owners" during their economic collapse and making if profitable. Of course once they did the owners came back -- I am not sure how that ended up in the courts.

But it's a motivating video for workers taking control of their own production after management has driven them into the ditch.
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unblock Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 09:43 PM
Response to Reply #14
19. the agreement by which they got 55% equity did not give them a majority on the board.
Edited on Thu Apr-30-09 09:43 PM by unblock
although in a sense it doesn't matter; during bankruptcy, the fiduciary responsibility of the board and the executives is primarily to the creditors, not to the equityholders. so even if they did control the board, they'd still have to cow-tow to the hedge funds rather than the rank-and-file.

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Hannah Bell Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 09:01 PM
Response to Reply #9
18. thanks for that info, very helpful.
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JVS Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 08:03 PM
Response to Original message
10. I am still wondering how such a thing is legal.
One would think that for one legal entity to exist as both the bargaining agent of the workers and majority shareholder in the company, which basically means boss, would be a massive conflict of interests. Put briefly: we all know the problem with a company union, is a union company essentially different? I hope so, but this is a weird situation.
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malti_poo Donating Member (12 posts) Send PM | Profile | Ignore Thu Apr-30-09 08:05 PM
Response to Original message
11. Who will they blame when the company fails?
ntxt
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Hoopla Phil Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 08:07 PM
Response to Original message
12. Remember when Harley Davidson was at death's door?
The employees joined together and bought it from AMF. I hope it works out as well this time around.
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leftofthedial Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 08:08 PM
Response to Original message
13. how long until they agree to give themselves a massive pay cut?
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Mugu Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-01-09 12:02 AM
Response to Reply #13
20. Only for new hires. n/t
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hughee99 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-01-09 01:10 PM
Response to Reply #13
22. If they have to have a strike or lockout.
Are the union leaders going to be negotiating with themselves as both management and labor? If so, will they be outside with the picket signs, or inside listening to the chants?
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Uzybone Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 08:28 PM
Response to Original message
16. According to some on DU this is a bad thing
they call it trickle down economics.
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kentuck Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-30-09 08:51 PM
Response to Original message
17. Here is more on the bailout from ABC News..
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eppur_se_muova Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-01-09 01:04 PM
Response to Original message
21. The triumph of corporate capitalism -- workers now control the means of production.
:evilgrin:
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4_TN_TITANS Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-01-09 01:39 PM
Response to Original message
23. It's an interesting turn. Did Obama just make history
by handing over the castle to the peasants? You can be sure with the employees in charge, CEO pay will come sharply back in line, and who's making the concessions now, bitches? What seems a disaster could be an Obama golden egg in disguise.
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4_TN_TITANS Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-01-09 01:39 PM
Response to Original message
24. It's an interesting turn. Did Obama just make history
by handing over the castle to the peasants? You can be sure with the employees in charge, CEO pay will come sharply back in line, and who's making the concessions now, bitches? What seems a disaster could be an Obama golden egg in disguise.
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