GM Is Filing For Bankruptcy – Plants Are Being Closed But Pensions Will Remain Intact – 06/01/09
By Doug Cunningham
Senior Obama administration officials said Sunday night that GM will file for bankruptcy Monday. For workers GM’s bankruptcy filing will throw decades of building a blue-collar middle class into reverse. The real issue for workers is not whether a much smaller, restructured GM can emerge from bankruptcy to be a “viable” new company. The real question is where will workers stand in this restructured auto world? Obama administration officials say the qualified pension plans for both hourly and salaried workers will carried over to the new GM and remain intact and benefits will paid as normal. UAW President Ron Gettlefinger says 20-25 percent of UAW workers’ benefits were given back in the latest round of concessions – a $1.3 billion per year loss for autoworkers. The right to strike is gone for six years, but Gettelfinger insists the UAW still has power and is ready for whatever GM does.