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Thread: Labor contracts during bankruptcy?

  1. #1
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    Labor contracts during bankruptcy?

    If one or more of the Detroit automakers enters bankruptcy, what happens to their contracts with the UAW and other unions?

    Could going into Chapter 11 be the way that Ford/GM/Chrysler shed their expensive labor force?

    Chip H.

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    Senior Member misterdecibel's Avatar
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    My understanding is that everything is negotiable in bankruptcy court.

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    Senior Member misterdecibel's Avatar
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    Oh, and there are rumors circulating that GM will file on Monday.

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    Senior Member Mase's Avatar
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    Quote Originally Posted by chiph View Post
    If one or more of the Detroit automakers enters bankruptcy, what happens to their contracts with the UAW and other unions?

    Could going into Chapter 11 be the way that Ford/GM/Chrysler shed their expensive labor force?

    Chip H.
    Well, it has happened a lot in the airline biz. The judge can do basically anything to the contracts.

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    So socialize the benes the US automakers get.

    Europe does it.

    I toldya you-all were socialist already already

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    Quote Originally Posted by misterdecibel View Post
    My understanding is that everything is negotiable in bankruptcy court.
    Right, everything.

    And that is what has everyone including the government, scared. The unions could have every active and retirement contracts done over, the suppliers' contracts the same, management the same, etc. And no one will have much in the way of bargaining power.

    Then it is always possible that the court might find that the best solution would be to liquidate the companies.

    Absent the rare "pre-packaged" deal, nobody can be sure exactly what is coming out after they enter the court house.

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    [quote=jdm124;109392]Right, everything.

    And that is what has everyone including the government, scared. The unions could have every active and retirement contracts done over, the suppliers' contracts the same, management the same, etc. And no one will have much in the way of bargaining power.

    Then it is always possible that the court might find that the best solution quote]

    Is not the problem lies with GM running on credit from banks which no longer lend? So throwing public money at an unsound business is delaying the inevitable...

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    Quote Originally Posted by robmcg View Post

    Is not the problem lies with GM running on credit from banks which no longer lend? So throwing public money at an unsound business is delaying the inevitable...
    You would not lend either, if the borrower was de facto bankrupt, which may be the case with GM.

    Only government is silly enough to attempt to delay what you've termed, 'the inevitable.'

    We have fallen into the midden and not bottomed yet.

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    Quote Originally Posted by jdm124 View Post
    You would not lend either, if the borrower was de facto bankrupt, which may be the case with GM.

    Only government is silly enough to attempt to delay what you've termed, 'the inevitable.'

    We have fallen into the midden and not bottomed yet.
    The entire West is intent on printing money, as a cure, and politically and short term it might soften a correction comparable the the Great Depression.

    Also, our Treasury head wears a toupe, spectacles, and a suit, so there you have it...

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    Quote Originally Posted by robmcg View Post
    The entire West is intent on printing money, as a cure, and politically and short term it might soften a correction comparable the the Great Depression.

    Also, our Treasury head wears a toupe, spectacles, and a suit, so there you have it...
    The printing of money will likely result in hyperinflation, something way worse than broad based deflation.

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