[lbo-talk] U.S. auto sector socialized! WITBD?

[Max B. Sawicky]

The Gov is not going to ask the workers to exchange accumulated
pension rights
for company stock.  There will be negotiations about
wages/hours/benefits in
terms of accretions to benefits from future service.  I think there is
a good
chance that future pension contributions, if any, will be put into a
new defined
contribution vehicle.

-----Original Message-----
From: lbo-talk-bounces at lbo-talk.org
[mailto:lbo-talk-bounces at lbo-talk.org] On Behalf Of Steven L. Robinson
Sent: Tuesday, April 28, 2009 3:47 PM
To: lbo-talk at lbo-talk.org
Subject: Re: [lbo-talk] U.S. auto sector socialized! WITBD?

I can't believe that the US Gov would GIVE the auto workers anything
such as stock ownership without getting something in return. 

Presumably, if the UAW is going to have an ownership stake in GM or
Chrysler, than it would follow that they would have to come up with
some money [in the form of pension funds, perhaps].  or consideration
in some other form (deferred raises, if there are any left that
haven't been deferred already) or pay cuts.  If so, the autoworkers'
assets will be tied to their companies the way Enron employee's assets
were tied to Enron, not a promising prospect given the state of the US
Auto industry on the brink of bankruptcy.

Still 40% ownership stake is 40%,if the UAW or its rank and file can
make something of it, there could be an interesting experiment. SR 

----- Original Message -----

From: Max B. Sawicky 

To: lbo-talk at lbo-talk.org

Sent: Tue, 28 Apr 2009 19:34:19 +0000 (UTC)

 Don't know what "equity" anyone was

referring to.

Obviously the stock is kaput.  
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