Union Czar ‘Bristles’ as Sun Shines on Detroit Deception of $30 Billion Loss

It’s interesting enough that the New York Times has a story on the shell game of Government General Motors repaying its taxpayer loan with taxpayer money, but even more interesting is the Union Manufacturing Czar Ron Bloom’s [emphasized] reaction at being exposed:

“The public would know nothing about the TARP escrow money being the source of the supposed repayment from simply watching G.M.’s TV commercials or reading Treasury’s press release,” Mr. Grassley said in a speech on the Senate floor last Wednesday, saying that “many billions” of federal dollars remained invested in G.M. 

“Much of it will never be repaid,” Mr. Grassley added. “The Congressional Budget Office estimates that taxpayers will lose around $30 billion on G.M.” 

[snip] 

And Ron Bloom, senior adviser to Mr. Geithner, bristled at Mr. Grassley’s criticism. “The Treasury Department has tried to be as straight as humanly possible,” he said in an interview. “We have never not been clear about exactly what we paid, exactly the terms of the investment. I’m finding it hard to find anyone obfuscating about this.”

He ‘bristled’???

As the Times points out: Taxpayers still own $2.1 billion in preferred stock of G.M. and almost 61 percent of its common equity.  

If taxpayers are being repaid with their own money, shouldn’t the taxpayers be the ones bristling, Mr. Bloom?

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“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.” Thomas Paine, December 23, 1776

For more news and views on today’s unions, go to LaborUnionReport.com.

Another UAW bailout is coming…

A couple of weeks ago, we posted on the giant-sucking sound that the UAW has become to America’s tax payers.

Well, the Truth About Cars blog has even more dire forewarnings than were previously reported on:

GM needs help from the government in areas that have nothing to do with the Volt as well. A recent GAO report exposing GM’s $27b in unfunded pension liabilities presents a similarly dire risk to GM’s long-term viability, and another entry on Ed Whitace’s DC to-do list. And once again, the advance guard of GM’s influence machine has already sprung into action. Senator Sherrod Brown and Rep Tim Ryan, both democrats of Ohio, have already written a letter to the Treasury [in PDF format here], urging GM’s masters to prevent the dumping of GM and/or Delphi pensions onto the struggling Pension Benefit Guaranty Corporation. The congressmen write:

According to the GAO, we are now facing an even greater liability in auto sector plans. The failure of additional auto sector plans would not only cost retirees tens of billions of dollars in lost benefits, it would also require the Pension Benefit Guaranty Corporation to assume an estimated $42 billion in unfunded liabilities. 

As a majority owner of General Motors, the U.S. government must not put itself in the pensions [sic]. It also would be a poor outcome for the U.S. taxpayer to sell our interests in the auto sector only to have the U.S. government to assume [sic] the unfunded liabilities in their pension plans. 

We would like to request a meeting with to discuss how Treasury and the Auto Task Force plan to resolve the outstanding pension issues in the auto sector and how you will ensure that the federal funding in the Automotive Industry Financing Program will protect pension plan participants and the PBGC from assuming the unfunded liabilities.  [Emphasis added.]

Since American’s are already on the hook for billions of dollars in bailouts for Detroits automakers, perhaps it’s time for someone to just say “no” when they come back to the cookie jar for more sweets.
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“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.” Thomas Paine, December 23, 1776

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UAW Becomes Giant Tick, Sucks U.S. Dry

Following our earlier post on the UAW suing Government General Motors, a friend sent us this story about the Government Accountability Office warning that U.S. taxpayers may have to cough up another $14.5 billion to bail out the UAW pensions of both Government General Motors and Chrysler.

Automakers General Motors and Chrysler will need to put billions of dollars into their pension plans over the next five years to meet their funding requirements, the Government Accountablity Office said Tuesday.

The GAO concluded that GM will have to add $12.3 billion by 2014, while Chrysler is expected to need $2.62 billion more during that time for its pension plan to keep it properly funded.

[snip]

The GAO said in a report that the future of those plans “remains uncertain” as the companies struggle to make money again.

Chrysler and GM will be able to meet their funding needs if they are profitable, the GAO said. The Treasury Department, which oversees the government’s sizable stake in the two companies, believes that will happen.

But if GM and Chrysler falter and are forced to terminate their pensions, the government’s Pension Benefit Guaranty Corporation insurance program would have to absorb $14.5 billion worth of company obligations to workers.

To read the GAO summary report (PDF), go here or to read the full 77-page (PDF) report, go here.

To read how to dispose of a tick, go here.

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“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.” Thomas Paine, December 23, 1776

Follow LaborUnionReport on Twitter.

For more news and views on today’s unions, go to LaborUnionReport.com.

UAW sues Government Motors

Ordinarily, seeing a headline that states “UAW sues General Motors” would require a real quick scan, get the gist of the story, post it (or not), then move on.

In this case, however, the moving on part came to an abrupt, screeching halt…

Hey! Wait a minute!

Long pause, closer look:

Today, the UAW filed a lawsuit against General Motors, claiming the automaker owes the union $450 million as part of a three-year-old contract with its former part division, Delphi. 

In the lawsuit, filed in federal district court in Detroit, the UAW contends that GM was obligated through a labor contract and the bankruptcies of both GM and Delphi to pay $450 million intended for the UAW’s Voluntary Employee Beneficiary Association for Delphi workers. That trust, called a VEBA, is to provide for retiree health care.

Then, the questions started rolling around.

How can Government General Motors be sued by the United Against Work United Auto Workers if the UAW owns 17% of GM?

Further, if the UAW wins its suit, does the amount awarded get reduced by 17%?

And, more importantly, if the U.S. government owns the majority of GM, isn’t the UAW really suing the U.S. government?

And, by suing the U.S. government, isn’t the UAW actually screwing suing us?
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“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.” Thomas Paine, December 23, 1776

Follow LaborUnionReport on Twitter.

For more news and views on today’s unions, go to LaborUnionReport.com.

GM to give (UAW) vice chairman Girsky $5M pay package

It’s always good to know that the government is watching out for taxpayers. And, more importantly, it’s good to know the government watches out for its biggest contributors, like the UAW.

From bailing out GM and Chrysler, to crucifying non-union Toyota, the government is doing a fantastic job for the UAW giving the union a seat at the table both in the White House and the board room of Government Motors…er GM.

In fact, were it not for the government and its ‘too-big-to-fail’ bailout of the car company formerly known as General Motors, the United Auto Workers might not have a seat at the table at all.

In this case, however, the UAW’s seat is filled by some guy named Steven Girsky, who, thanks to the UAW and the Obama administration is getting a $5 million pay package.

General Motors Co. will pay vice chairman Steve Girsky, who also sits on the automaker’s board as a representative of the UAW, a $5 million package, the automaker disclosed in a regulatory filing.

The package includes a $500,000 annual salary and $4.5 million in stock spread out over time. Girsky is president of S.J. Girsky and Co., an advisory firm based in New York, and a longtime adviser to both GM and the UAW.

In 2012, Girsky will start to receive $3 million in stock over three years. He also is eligible to receive $1.5 million in restricted stock once GM repays federal aid it has received. Girsky has to be employed for three years before the stock can be awarded.

It’s good to know the government’s watching the taxpayer’s backs and even better to know the taxpayers will still be picking up the tab.

Read more here.

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“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.” Thomas Paine, December 23, 1776

Follow LaborUnionReport on Twitter.

For more news and views on today’s unions, go to LaborUnionReport.com.

Government Motors: Government of the idiots, by the idiots and for the idiots

The following was sent to us last Friday and we felt it worthy of a post.

The genius of our government becomes more evident every day.

Our state owned and controlled auto manufacturing company, GM, has been told by its de facto CEO, President Obama, to produce smaller, lighter and more fuel efficient cars. At the same time the second largest shareholder in the new GM, Ron Gettlefinger, the head of the United Auto Workers, has convinced Congress to direct state owned and run GM that they are prohibited from importing small, light fuel efficient cars to the US that they currently make in their own factories in China.

Today, state owned and run GM announced that it is selling Saturn to Roger Penske, the second largest auto dealer in the world. Penske already is the exclusive North American distributor of Smart Cars (made by Daimler-Benz) and he announced separately that he has a deal to import and distribute small, light fuel efficient cars made by Renault at his new Saturn dealerships.

Now Saturn dealers will have Saturn, Renault and Smart Cars. Penske also announced that he is negotiating with SEVERAL CHINESE AUTO MANUFACTURERS to import and distribute small, light fuel efficient cars made in
China, by Chinese auto manufacturers. (Currently, more cars are made in China
each year than in the US.)

So state-owned and controlled GM has just created another huge competitor for the small, light fuel efficient auto market, which will have the ability to import cars from manufacturers who have specialized in small, light fuel efficient cars for years. While at the same time not being able to import to the US small, light fuel efficient cars that they already make in their own factories in China.

I guess I am not holding much hope that my tax investment in the new GM will be repaid; but I am glad the the government is watching out for my best interests.

Have a nice weekend Comrades!