Auto Bailout Federal Loan Deals Bar Strikes
January 9th, 2009Oh sure, bankers buy new palaces with their bailout money, but if autoworkers get any funny ideas…
Via: AP:
Provisions of General Motors’ and Chrysler’s $17.4 billion in federal loans automatically places them in default if union workers go on strike.
A General Motors Corp. filing this week with the Securities and Exchange Commission detailed the provision as part of its $13.4 billion in federal loans.
A person briefed on Chrysler LLC’s $4 billion loan, who didn’t want to be identified because the company is in talks with the United Auto Workers union about concessions, confirmed Thursday that the Chrysler deal also has a similar provision.
The UAW isn’t a party to the deal and hasn’t threatened a strike, its most potent weapon against the Detroit automakers.
The UAW and the automakers have a Feb. 17 deadline to agree to concessions to lower labor costs.
