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Market Currents

Tuesday, May 5, 2009
3:50 PM TweetThis
  • UAW's strongarming a better deal out of GM (GM) than bondholders, leveraging their ability to strike, is nothing less than extortion, Senator Bob Corker says. Ok, isn't that what unions do?
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This news story has 9 comments:

  •  
    Wait till the time comes for the UAW to renegotiate deals with their competitors, because that's what Ford and GM have become. Think they will give GM the same concessions they gave themselves?
    2009 May 05 03:57 PM Reply
  •  
    Bob Corker is a multimillionare.

    He already belongs to a union for millionaires--it's called the United States Senate.

    How's that free health care treatin' ya Bob?
    2009 May 05 04:00 PM Reply
  •  
    Good point. We'll see how long the asylum stays in business with the inmates in control.
    2009 May 05 04:01 PM Reply
  •  
    In the Senate they call strikes filibuster
    2009 May 05 04:02 PM Reply
  •  
    The devil is in the details. Chrysler is being run by the UAW's "retirement health care fund". So the UAW can screw the crap out of that financial burden right up to the point of having it go chapter 7, and whoosh, no more health care benefits for the retirees, no more mega-expense on the books.



    On May 05 04:01 PM Whippet wrote:

    > Good point. We'll see how long the asylum stays in business with
    > the inmates in control.
    2009 May 05 04:05 PM Reply
  •  
    UAW will not strike as this parasite found a new healthy host to suck dry: a taxpayer. It is just a matter of time before GM and Chrysler start getting subsidies under some new phony "green", "oil independence", or "empower America" program once they become majority union-owned.
    2009 May 05 04:18 PM Reply
  •  
    I'm an Investor - and a Self-employed Contractor - but I've been around long enough and known enough board members to realize unions are critical in the mix of market players.

    Boards have a fiduciary responsibility to maximize shareholder equity and return. Labor is a cost center; and a large one at that. If the market didn't have a player with the size and heft of the UAW looking out for the interest of the workers, Investors and creditors (who look out for their own interests, too) would leave them in soup lines without a moments hesitation.

    I don't blame either faction. Its just competing self-interest, aka, the market, at work.
    2009 May 05 04:33 PM Reply
  •  
    I agree. In the world of super powers we call it "Balance of Power". In the Government we call it "checks and balances". Without "checks and balances" it's called a Dictatorship.


    On May 05 04:33 PM Jedediah wrote:

    > I'm an Investor - and a Self-employed Contractor - but I've been
    > around long enough and known enough board members to realize unions
    > are critical in the mix of market players.
    >
    > Boards have a fiduciary responsibility to maximize shareholder equity
    > and return. Labor is a cost center; and a large one at that. If the
    > market didn't have a player with the size and heft of the UAW looking
    > out for the interest of the workers, Investors and creditors (who
    > look out for their own interests, too) would leave them in soup lines
    > without a moments hesitation.
    >
    > I don't blame either faction. Its just competing self-interest, aka,
    > the market, at work.
    2009 May 05 04:56 PM Reply
  •  
    Yep, there is quite a double standard around here. If bondholders push for a better deal, they're looking out for their interests. However, if the UAW does the same, somehow its extortion.


    On May 05 04:56 PM Niner wrote:

    > I agree. In the world of super powers we call it "Balance of Power".
    > In the Government we call it "checks and balances". Without "checks
    > and balances" it's called a Dictatorship.
    2009 May 05 05:37 PM Reply
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