Unions prevail over Wall street in Chrysler deal.

[Kdillard]

http://online.barrons.com/article/SB124122579378179443.html



PRESIDENT BARACK OBAMA BLAMED CHRYSLER'S BANKRUPTCY on "speculators," but

the real problem was that the government's plan gave too much to the auto maker's unions and not enough to creditors.

If the secured creditors holding $6.9 billion in claims had been offered anything close to what the administration wants to give the United Auto Workers, there would have been no bankruptcy filing by Chrysler.

In the bizarre pecking order offered by the administration, the unions, which are at the bottom of Chrysler's capital structure, would get nearly full recovery value for their $10.6 billion retiree health-care claims, while the secured...




Unions take rare front seat in Chrysler deal.


http://www.nytimes.com/2009/05/02/business/02bankrupt.html?ref=global-home

Labor unions usually dread bankruptcy, and for good reason. Their pay, benefits and pensions typically suffer significant cuts, as airline and steel workers can attest.


But for the United Automobile Workers union, Chrysler’s Chapter 11 case, which began in New York on Friday, could turn out to be — if the company survives and thrives — the Cadillac of bankruptcies.

The U.A.W., for example, has received upfront protection from the Treasury Department for its pension plan and the fund that will take over responsibility for retiree medical benefits.




Unbelievable so to hell with the retirees and their Healthcare.