Most coverage of General Motors’ future has focused on the Obama administration’s 60 percent ownership of a post-bankruptcy GM. But the United Autoworkers, which represents almost all GM workers, will own 18 percent of the company through their retiree health fund. And UAW gets 55 percent of Chrysler. With the Obama administration pledging a light hand in GM management, does that mean UAW will make management decisions? No, reports the New York Times’ Steven Greenhouse:
…[T]he Obama administration structured the G.M. and Chrysler plans to lessen the union’s voice in management. The retirees’ health fund has six public-appointed trustees and five union-appointed trustees. Though the union health trust owns 55 percent of Chrysler, it will hold just one seat on the Chrysler board. And at both automakers, the health fund’s shares will be nonvoting.
The UAW has often not been the most farsighted union. And other employee-owned ventures, like United Airlines, have ended in bankruptcy. It’s strange, though, that a bailout whose purpose is to lessen layoffs would not empower workers. It’s up to the workers still at GM and Chrysler to show they can make cars that people will buy and won’t ruin the environment. The UAW members have the most incentive — more than the new Obama-approved management team — to show that GM and Chrysler are still relevant.-MB
Topics:
Beltway Outsider,
Dept. of Labor,
Dept. of the Treasury,
Troubled Asset Relief Program (TARP),
Unions and Government
Tags:
bankruptcy,
Chrysler,
employee ownership,
General Motors,
GM,
UAW,
United Auto Workers
