Forget all the public sector unions what about UAW being paid off by OUR MONEY

I guess everybody forgets what these crooks in DC paid the unions to agree with the buyout of GM. 10 billion in cash and 17% of the company right off the top. Ten billion to fund their own retirement program that THEY mismanaged to begin with. Its ridiculous beyond belief. Taxpayers fleeced by unions over and over.

The Wall Street Journal [online.wsj.com... ] reports the terms of the United Auto Workers (UAW) deal with the feds re: their payoff to join post-bankruptcy ”good” GM. Uncle Sam will “contribute” $10 billion to the union’s Voluntary Employee Beneficiary Association (VEBA) health care superfund, paying off half of GM’s unfunded obligations in one fell swoop. The Treasury Department will also give the UAW a $2.5 billion promissory note. GM (i.e., the federal government) will pay off the note in cash, in three installments (2013, 2015, and 2017). And just in case that’s not enough to entice the union to join “good” GM, the UAW will also receive 17.5 percent of the new post-C11 GM (no longer a controlling interest) AND stock warrants for an additional 2.5 percent of the reorganized company. The $6.5 billion in preferred stock includes a nine percent cash dividend—that will pay out $585 million annually. Saying that, this is all subject to a federal bankruptcy judge’s approval.

reply to post by HoldTheBeans
Star, Flag and Bump!

This must not be forgotten.

There definitely is something fishy about the focus on the government unions. Or it's just because it's a current event that it's getting so much attention.

Only the next few months will really shed light on the real reasons behind this.

All I know is that whatever the outcome I wont benefit in the least. Either way government wins.

Originally posted by butcherguy
reply to post by HoldTheBeans

 

Star, Flag and Bump!

This must not be forgotten.

I agree, this has been an issue that is almost oddly glossed over(or ignored) on here ....and everywhere else, for that matter.

It was a political payoff.

Is this trying to blame the unions now for the financial deregulation and housing bubble mess? Lots of super and other funds got ripped off all around the world and none of the people that profited from it have been made to account. Now these same people are going to profit even more as employee rights, conditions and pay are cut back. We have already been through this scam here in Australia, the politicians who brought it in got kicked out at the next election with some worker rights coming back. Be careful with the media hype.