Did You Know? Federal Bailout Effectively Strips UAW Of Strike Privileges

General Motors Corp. and Chrysler LLC would be in default of up to $17.4 billion in federal loans if the United Auto Workers or another union engaged in a strike or work stoppage, a loan provision that essentially strips the union of a powerful negotiating tactic it has used several times in recent years.

The provision is buried deep in the Loan and Security Agreement between GM and the U.S. Treasury Department governing the use of up to $13.4 billion in short-term loans that prevented the automaker's collapse, according to documents filed Wednesday with the U.S. Securities and Exchange Commission. Other events that would trigger a default include failing to make a payment on time or voluntarily filing bankruptcy.

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dbtk - 1/9/2009 3:48:53 PM

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Amen.

chalkeater - 1/11/2009 7:30:20 PM

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Hey 1UAW...Last year...UAW vs American Axle...Smells like a strike to me...Unions = Bad for America!

evanescence - 1/10/2009 12:16:14 PM

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no that is exactly how it should be worded!

neutral - 1/10/2009 12:32:01 PM

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You guys crack me up. As if it really matter to your everyday lives what the UAW does. Quite frankly, the only real pain in the ass about the UAW are shop floor rules. Makes me laugh when people with no connection to the industry complain about the UAW as if they dealt with unions all day long, everyday.

neutral - 1/10/2009 6:34:37 PM

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Funny b/c no one criticizes the police or fire dept unions. No one criticizes the teacher's unions or construction unions. It's just trendy to criticize the UAW of today with antiquated stories of yesteryear. Not only that, the propaganda machine of certain Senators would like everyone to believe that UAW is the main problem... mostly b/c their party lost tons of sway in government and union workers tend to vote against them.