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A package of concessions designed to reduce General Motors Corp.'s labor costs appeared headed for approval by union members Friday with workers at at least seven factories overwhelmingly approving the deal.

The vote comes in advance of an expected Chapter 11 bankruptcy protection filing by GM on Monday. Bankruptcy experts say having an agreement in place before the filing will help move the process through court more quickly.

United Auto Workers members at factories in Spring Hill, Tenn.; Janesville, Wis.; Lordstown and Toledo, Ohio; and Orion Township, Pontiac and Lansing, Mich., all voted in favor of the deal.

Voting at more than 40 GM facilities is scheduled to wrap up by 4 p.m. Eastern Friday.

UAW leaders agreed to the revised contract last week that freezes wages, ends bonuses, eliminates noncompetitive work rules and ends the possibility of a strike until the next contract expires in 2015.

http://news.yahoo.com/s/ap/20090529/ap_ ... /us_gm_uaw

Banks
Mortgage Lenders
Insurance Companies
Auto Manufacturers

The trip down the slippery slope continues.

AZGrizFan wrote:Banks
Mortgage Lenders
Insurance Companies
Auto Manufacturers

The trip down the slippery slope continues.

I think the gov't will actually make a good deal of money on this. The plan right now gives a huge ownership interest (~70%) in what will become the new GM (the spun-off entity during bankruptcy).

I don't think the Treasury wants to keep that interest. I think they'll sell it for a major gain and very quickly. They are getting an interest at bargain prices. GM will be a very efficient company when this is all said and done.

Our government as a profit center - a novel concept.

danefan wrote:

AZGrizFan wrote:Banks
Mortgage Lenders
Insurance Companies
Auto Manufacturers

The trip down the slippery slope continues.

I think the gov't will actually make a good deal of money on this. The plan right now gives a huge ownership interest (~70%) in what will become the new GM (the spun-off entity during bankruptcy).

I don't think the Treasury wants to keep that interest. I think they'll sell it for a major gain and very quickly. They are getting an interest at bargain prices. GM will be a very efficient company when this is all said and done.

I'm gonna bet that they retain ownership at some level forever.

This is a scary precedent but it should revitalize the company, and hopefully it won't revert back to it's irresponsible ways. I think the UAW approved salaries were incredibly high for entry level positions.