Workers Losing Jobs In GM Bankruptcy Will Get Most Of Their Pay For A Year, Obama Says Bankruptcy Pl

[Omaha Steve]

http://www.laborradio.org/node/11233

By Doug Cunningham

GM’s bankruptcy cuts 20,000 jobs in nine states, but union contracts and pensions remain intact. Under UAW contracts the workers will get most of their pay for a year and buyouts of up to $115,000 are being offered for early retirements. The union also convinced GM to build a new small car in the U.S. rather than in China. GM CEO Fritz Henderson.

: “This is not the end of General motors, but the start of a new and better chapter. We will have far less debt, fully competitive labor costs and the ability to generate sustained and positive bottom-line performance.”

GM Monday announced 14 plants that will be closed or idled on standby status. Six are in Michigan –Orion, Pontiac, Grand Rapids, Livonia, Flint, and Willow Run. The others are Indianapolis, Indiana, Spring Hill, Tennessee, Wilmington, Deleware, Mansfield, Ohio, Parma, Ohio, Fredicksberg, Virginia and Messena, New York.

The U.S. government is providing $30.1 billion in bankruptcy financing to guarantee the creation of a new GM that will emerge from a bankruptcy within 60-90 days. President Obama says autoworkers have joined other GM stakeholders in making deep sacrifices. But he says that sacrifice won’t be in vain.

: “GM and its stakeholders have produced a viable, achievable, plan that will give this iconic American company a chance to rise again.”

Chrysler is emerging from bankruptcy as GM enters it.

[bbinacan]

1. GM is dead

they can't sell these micro cars in the US and make money. Just good money after bad.