NewsUAW considers buyout of General Motors
04/23/07 - newratings.com
NEW YORK, April 23 (newratings.com) – United Auto Workers (UAW), the labour union of General Motors (GM), is considering seeking a majority stake in the Detroit, Michigan-based automaker, the Wall Street Journal said on Friday, citing a person familiar with the matter.
The proposal would require the swapping of healthcare concessions from the labour in return for a 70% stake in General Motors in the form of employee stock ownership plan (ESOPs), UAW President Ron Gettelfinger said in an interview on Friday to Detroit-based WJR Radio. Gettelfinger added in the interview that he would prefer Chrysler to stay part of Daimler, but is considering all options. Chrysler said on Friday that it had received a buyout proposal from employees and that it is in the process of examining the same.
According to Reuters, representatives of billionaire Kirk Kerkorian, who has made a $4.5 billion bid for Chrysler, are seeking a meeting with the workers who had made the buyout proposal to discuss areas of cooperation. Kerkorian’s offer includes a plan for a "substantial" stake in the company to be owned by the UAW.