Re: Re: [Pen-l] labor and the auto companies

[raghu <mraghu01@xxxxxxxxx>]

On Thu, Nov 20, 2008 at 10:40 AM, David B. Shemano <dshemano@xxxxxxxxxx> wrote:
>
> Not true.  Plenty of people would be willing to finance GM if it restructured its balance sheet.  The notion that nobody wants to buy GM cars is ridiculous -- my goodness, the company had $165 billion in sales last year.  The problem is nobody wants to buy GM cars at a price that will allow GM to operate at a profit based upon its existing debt and cost structure.  However, to restrucuture its balance sheet, GM would have to restucture its labor and retirement costs.  So if the UAW wanted to own the company and obtain financing to operate, they would have to negotiate with themselves.
>


The UAW represents both retirees and current workers. They would face
enormous conflicts of interest by assuming control. But if the
government is going to bail them out anyway, yours is not a bad idea.
Better than the current incompetents running GM and Ford and
definitely better than Cerberus running Chrysler.

But the question is: would you support a government bailout of
worker-owned firms?
-raghu.

-- 
Dyslexics of the world, UNTIE!
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