The Wall Street Journal reports that the United Auto Workers will eventually own 55 percent of Chrysler stock under the terms of a deal reached by the union and company. Fiat SpA will eventually take up 35 percent while the U.S. government and Chrysler’s other lenders will end up with the remaining 10 percent.
According to the terms of the deal, Chrysler will also issue a $4.59 billion note to the UAW-managed health care trust fund for its retired workers. (I believe this technically makes my Jeep Wrangler an Italian sports car!)
During this latest round of talks, the UAW agreed to new “concessions.” Now, “workers will only be paid for overtime after they have worked at least 40 hours in a week. Chrysler workers will also lose their Easter Monday holiday in 2010 and 2011, according to the union summary.”
I had to read that a second and third time to let it sink in. After years of haggling over “concessions,” only now is the UAW willing to give up vacation day after a holiday and overtime for working less than 40 hours. They literally brought Chrysler to the brink of bankruptcy to preserve a vacation day. That should have been off the table in 2007. The hubris of the UAW is shocking.