It is perfectly natural that this country’s unions would expect favors from Barack Obama and other Democrat politicians. After all, these same unions donated over $100 million last year to get these same people elected (see: Union Donations). But the actual quid pro quo seems to me to be getting a little rich, viz:
1) In bankruptcy, Chrysler Corp. debt holders (hedge funds, etc.) have been offered by the Obama administration approximately 33 cents on the dollar of the money owed to them … whereas the United Auto Workers are to receive 100 cents on the dollar for what Chrysler owes them (see: UAW Windfall). The consequence of this government cram down (see: Cram Down) is that the UAW will end up owning about 55% of the resultant Chrysler company.
1) In bankruptcy, Chrysler Corp. debt holders (hedge funds, etc.) have been offered by the Obama administration approximately 33 cents on the dollar of the money owed to them … whereas the United Auto Workers are to receive 100 cents on the dollar for what Chrysler owes them (see: UAW Windfall). The consequence of this government cram down (see: Cram Down) is that the UAW will end up owning about 55% of the resultant Chrysler company.
2) Obama is strongly committed to eliminating the secret ballot in voting for union shops. This is called the Employee Free Choice Act (or "Card Check") but would result in exactly the opposite since employees would be consequently coerced into voting for the union (see: Employee Coercion)
3) The current Democrat administration is in the process of rolling back union disclosure requirements that have helped to quell union corruption (see: Stopping Union Disclosure)
4) The recently-passed $787 billion Stimulus Bill (the one no one read before they voted for it) has a provision that any construction project of $25 million or more MUST go to an union shop (see: Stimulus Bill Stipulation)
And, I'm sure, many more goodies.
1 comment:
For a model on how to judge the future of Chrysler, use Weirton Steel (a company of which I know a little). From the date that the employees took over this former part of National Steel, it took only about four years for this once giant of the steel business to sink under the waves
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