Monday, December 15, 2008

Facts (Not MSM Spin) on the Non-Bailout Agreement

Shoebox did the digging. Here's what was agreed to before Ron Gettelfinger screwed up the deal:

--Management would take a hit - dramatically reduced salaries and bonuses, no golden parachutes, no planes. plus they would have to answer to an Auto Czar, ensure they meet CAFE standards and dump money into non fossil fuel vehicles

--Bondholders would take a hit - Bondholders had agreed to take $.30 on the dollar to reduce the debt that is held on the automakers

--Equity holders would take a hit - The government would get warrants for 20% of the equity in the participating company’s thus dilluting equity that is just above penny stock value.

--Even slackers had contributed - the UAW had to agree to do away with payments to workers who were still receiving full compensation for up to four years even after their jobs ended

So far, so good. Then the wheels came off over the wage question. Quoting Kudlow:

During the negotiations Corker tried to be as compromising as possible on the tough question of wages, benefits, and overall compensation. He asked the union to be competitive, but he never specified parity or complete equality with the foreign transplants. And Corker provided that the comp-package would be certified next year by the secretary of Labor — an Obama selection. In addition, the Senate governing the package would be made up of 58 Democrats, rather than today’s 50.

All Corker asked was a 2009 date for union pay restructuring. Sen. Corker never specified his date. He asked the UAW to name its date for a new pay package. But it had to be in 2009. In return, union members would get a lot of stock in this deal — up to $10.5 billion of new equity as GM’s heavy debt burden would be converted into common shares.

Puts things in a different light, eh?

In effect, Gettelfinger told Corker that his membership did NOT want equity (shares) in GM and Chrysler. Hmmmm. Why not, Gettelfinger? Think it's a losing proposition, big guy?

That tells you more than all the rest of the MSM (and left0-wacko) fertilizer combined, no?


Billiam said...

Doesn't matter. Anything Union equals good and inviolable to a large number on the Dem side.

Shoebox said...

With the last name of "Give-you-the-finger," well, Corker should have seen the answer well in advance!

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