Archive for the ‘auto industry’ Category
UAW wins, suppliers lose in Chrysler bankruptcy
In an interesting take on Chrysler’s chapter 11 filing this afternoon, a New York Times article shows the United Auto Workers union coming out of the ordeal on top.
The New York Times, April 30: The U.A.W. members at both automakers stand to lose some of their pay and benefits, but the cuts are not as deep as those faced by airline and steel workers when their companies went bankrupt. Under proposed deals devised by the Treasury Department, U.A.W. pensions and retiree health care benefits would largely be protected.
The U.A.W. has derived its leverage in part from the support of a Democratic president and Congress. But it also results from a long-term strategy to build support in Washington that stretches back more than 60 years.
On the other side of the spectrum, 50 unsecured creditors listed on Chrysler’s bankruptcy filing, a large portion of which are based in Southeast Michigan, may not see a dime from the company. These include Chrysler’s Troy-based advertising firm BBDO and suppliers like Continental Automotive in Auburn Hills and Bridgewater Interiors in Detroit. Here’s a copy of the bankruptcy filing; the list of unsecured creditors, along with the amount of money owed, starts on page 12.
