Posted by doofus on 11/26/10 6:59pm
Msg #362829

now tell me the unions are not pampered

investors lost it all, including retired gm folks. Taxpayers will take several years, if ever, to recoup. But the unions come out smelling like a rose, because obama and his people, planned it that way. By the way, as a payback for big money and support, and the promise of more. You and I should be so lucky


union recovering after stock sale
Taxpayers and investors not as fortunate as UAW
By Patrice Hill
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General Motors Co.'s recent stock offering was staged to start paying back the government for its $50 billion bailout, but one group made out much better than the taxpayers or other investors: the company's union.

Thanks to a generous share of GM stock obtained in the company's 2009 bankruptcy settlement, the United Auto Workers is well on its way to recouping the billions of dollars GM owed it — putting it far ahead of taxpayers who have recouped only about 30 percent of their investment and further still ahead of investors in the old GM who have received nothing.

The boon for the union fits the pattern established when the White House pushed GM into bankruptcy and steered it through the courts in a way that consistently put the interests of the union ahead of many suppliers, dealers and investors — stakeholders that ordinarily would have fared as well or better under the bankruptcy laws.

"Priority one was serving the interests of the UAW" when the White House's auto task force engineered the bankruptcy, said Glenn Reynolds, an analyst at CreditSights. The stock offering served to show once again how the White House has handsomely rewarded its political allies, he said.

The union's health care and pension trust fund earned $3.4 billion through the sale of one-third of its shares in GM last week. Analysts estimate that it would break even if it sells the remaining two-thirds of its shares at an average price of $36 — close to where the stock traded shortly after the offering hit the market. GM shares closed at $33.45 on Wednesday.

President Obama inspects the new Chevrolet Volt during his tour of the General Motors Auto Plant in Hamtramck, Mich., in July. The United Auto Workers' health care and pension trust fund earned $3.4 billion through the sale of General Motors Co. stock last week. (Associated Press)For taxpayers to break even, by contrast, the stock would have to rise to at least $52 and by some estimates as high as $103 — levels that would take years to achieve.

In any event, after selling one-third of its shares last week, the U.S. Treasury has agreed not to sell any more of its GM stock for another six months, while the union fund is free to keep selling its shares.

Through the offering, the Treasury recouped $13.7 billion of its $49.5 billion cash infusion in GM, with another $1.8 billion possible by the end of the year. GM is repaying another $9.5 billion in loans from the Treasury, but that still leaves taxpayers a long way from breaking even.

Union claims ordinarily do not receive such special treatment in bankruptcies.

The generous share of GM stock given to the union trust fund under the White House deal puts it not only ahead of the Treasury but on a par with secured creditors such as banks, which normally receive the most favorable treatment from bankruptcy courts.

Story Continues →

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Reply by HisHughness on 11/26/10 7:09pm
Msg #362832

OK, I'll tell you: Unions aren't pampered. Now to JPol n/m

Reply by Susan Fischer on 11/26/10 9:17pm
Msg #362846

Pop Quiz: Who owns the Washington Times? Answer:

check it out: http://en.wikipedia.org/wiki/The_Washington_Times

Reply by doofus on 11/27/10 11:01am
Msg #362870

Re: Pop Quiz: Who owns the Washington Times? Answer:

This articles points out that everyone involved, took a bath. Every,inckluding you and me, as taxpayers. Everyone except the unions, they are being made whole. Your answer is tto point out who owns the times. Who owns the times is old news. Wether or not this is true news, is the issue. Had you said that it was a false article, that wouldhave made sense

Reply by EileenMO on 11/27/10 7:15pm
Msg #362888

The UAW

We are current GM retirees.... The unions have been giving concessions to the company for the past 12 or more years.... every year it was something else.... There were no salary increases for 8 years.... mainly it was a matter of keeping the medical benefits. Then retirement.... and the union and company setting up the retiree trust organization. Medical sucks..... it was not funded, each of the auto makers were supposed to contribute, but couldn't because of the economy..... The untruths when the company was in trouble about the hourly wage (sure wish we did make that much money!). I get really tired of people always blaming the unions for the problems in a company when it is really a poor management issue. After years of concessions, when the company starts to make a comeback, it is the CEO's who get the accolades and the money in the pocket, not the union workers who have to deal with the CEO decisions. There will be a very long way to go to make the unions whole again..... and, I suspect, it will never happen....

Reply by HisHughness on 11/28/10 12:39am
Msg #362901

This r-e-a-l-l-y belongs in JPol

But before it goes there, Eileen, let me say that you're preaching to the fence posts.

The big bad union that is destroying corporations and the American Way of Life is conservative dogma that is simply impervious to the truth. You know, those unions that have only a tiny fraction of the trillions of assets of those corporations that are now buying the American electoral process.

Reply by EileenMO on 11/29/10 3:43pm
Msg #363072

Re: This r-e-a-l-l-y belongs in JPol

Yes.... I know.... I get so very tired of the bashing and realize that they are not perfect. The labor movement..... the folks who brought you the weekend!!!