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The United Auto Workers Union (UAW) could end up with a majority stake in Chrysler in the latest deal to save the struggling US car maker.

A draft deal has been announced that involves the UAW taking a 55 per cent in Chrysler, with the rest of the firm split between creditors, the US government and Fiat.

In return for the majority stake, the Union would have to agree to a halving of the $10.6bn (£7.1bn) Chrysler had pledged to invest in healthcare plans for retired workers.
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Giving the company to the unions might actually work  - it's the unions that have been screwing the company up for years, and with unoin ownership you remove most of the problems - they can't refuse to negotiate or lower wages or they damage their own profits and lose their own jobs.

Audi Tastic:

they can't refuse to negotiate or lower wages or they damage their own profits and lose their own jobs.

 

Nice theory. Chrysler co-op.

If UAW owns most of GM and most of Chrysler, is a merger on the way after all??????

Good move - make the parasites their own owners - all of a sudden you will have yourself an efficient, flexible, common sense operation.

We have seen this time and time again, where struggling companies on the verge of bankruptcy are bought out by the workforce who in turn make the companies into profitable operations.  Even some coal pits fall under this strategy.

Audi Tastic:

it's the unions that have been screwing the company up for years, and with unoin ownership you remove most of the problems

Would the unions then be prepared to do what was necessary to turn the business around?   Or would they try to continue on the same path begging for more and more support from the US Government?

You know the answer to this, it would be like Rover all over again.   It would seem fine, but only for a short while and then it would totally collapse.   Unfortunately, as we've all discussed on this website over the last few months, it seems that some of the weaker companies must fail for the stronger ones to survive.

The sad fact is that unions in general don't have a commercial bone in their body, they'd keep driving Chrysler along on their utopian road until it imploded.

Let's not get confused here- this article isn't suggesting that the unions will 'manage' or directly control the management of the company. They will become majority shareholders and will therefore have a stake in the success of the company and a say (along with all other shareholders) in the way it is run.

That's not me suggesting this is a good idea. It doesn't seem like a good idea to me at this point. Just a delay of the inevitable.

A corpse is a corpse , once something is dead leave it alone .This company had no capacity to make money ever let alone repay its debts . There are efficient companies who will fill the void . This company is not worth saving , let it go !