U.A.W. May Take Over Chrysler
29 Apr 09 | Guardian
Chrysler may give union 55% stake instead of $10.6bn to provide healthcare after Obama administration piles pressure on carmaker.
Chrysler’s largest trade union could end up owning 55% of the ailing carmaker under a tentative deal intended to save the cash-strapped 84-year-old company from bankruptcy and possible liquidation.
With just 48 hours to go before a deadline set by the Obama administration to prove its viability, the third largest US motor manufacturer yesterday agreed the outlines of an arrangement to carve itself up between the union, the US government, lenders and its likely technology-sharing partner, Fiat.
Under the pact, the United Auto Workers Union would take a majority share in the company and would get a seat on the board – an unprecedented arrangement which would turn the firm effectively into an owner-operated enterprise. >>>