Chrysler Bankruptcy – What Happens To Workers And Retirees? – 05/01/09
By Doug Cunningham
So what happens to workers and retirees in the Chrysler bankruptcy? The United Auto Workers union says under its agreement with Chrysler that will be presented to the bankruptcy court the UAW pension plan will continue in effect without change. The retiree health care trust will be funded with Chrysler stock as previously announced, giving the UAW 55 percent ownership of a restructured Chrysler. The UAW says Chrysler, the U.S. Treasury and Fiat all remain committed to the agreement negotiated with the UAW and ratified by its Chrysler membership. The bankruptcy filing was forced by hedge fund creditors who refused to settle with the government and Chrysler on debt reduction. President Obama said these hedge funds didn’t want to share in the sacrifices made by the union. Obama says he does not stand with the creditors. And the Obama administration says it doesn’t expect any more significant Chrysler job losses as a result of the bankruptcy.