Chrysler's Bankruptcy: Union-Management Relationships Unlikely to Change in Detroit

[Omaha Steve]

http://seekingalpha.com/article/134892-chrysler-s-bankruptcy-union-management-relationships-unlikely-to-change-in-detroit

Second marriages are often described as the triumph of hope over experience. It’s already beginning to look as if the pundits optimism regarding the UAW’s majority ownership is likewise mostly hope.

Here from Clusterstock is Joe Weisenthall’s take:

“But a car company with significant UAW ownership is bound to be run much better than car companies under the previous scenario because the Union, finally, will have a stake in the companies success. They’ve never had that before. Previously, their relationship was, frankly, parasitical. The union had no real reason to see the car companies succeed. They just wanted their wages maintained, their pension fully funded and their healthcare.”

But you can’t be a parasitical on yourself. That’s impossible. The only way the union’s equity stakes in the car companies will be worth something is if the car companies make it. And if the car companies flail, they won’t really have anyone else to blame.

I don’t mean to pick on Joe. There were plenty of other sentiments along this line. Here and here are links to a couple of other opinions.

It seems as if Ron Gettelfinger, the head of the UAW, views things a bit differently. According to the WSJ he told Fox News that things aren’t really going to change all that much:

“The United Auto Workers president is seeking to distance his union from direct responsibility for the future of Chrysler LLC, noting 55% of the auto maker will be owned by a retiree health care trust fund and not the union itself.

FULL story at link.