Chrysler hits the wall
President Obama will announce the bankruptcy of Chrysler Corp. tomorrow. This according to a variety of “sources said” stories circulating, including this one from Bloomberg. The filing will coincide with an alliance with Fiat.
The Italian company would become a 20 percent owner of Chrysler, and a union retiree health-care trust fund would own 55 percent, with the rest of the company staying in the government’s hands initially.
- Apr 29, 2009 2:20 PM — Paddy Hirsch
- 3 comments
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Comments (3)
April 29, 2009 3:14 PM PT
I don’t know much about the history of unions, but is it common to have a union actually own part of the company? If so, the whole union vs business debate seems odd, and the internal politics must be insane.
April 30, 2009 4:32 AM PT
Union ownership is a great idea, in my opinion, for a basket case like Chrysler. Directly linking worker productivity with keeping the union benefits at a reasonable level has to be an improvement over the past labor vs management battles.
April 30, 2009 4:26 PM PT
Don, this was a big topic of conversation at our meeting this morning. Some compared the idea to share option compensation plans, which provide executives with incentive to operate the company efficiently. Others pointed out that system has its flaws, and still more said the history of worker-owned companies has been pretty patchy, in term of their success. You’ll be pleased to know we’re all still friends, though.