Printer-friendly versionSend to friend

By Doug Cunningham

The approval of GM’s assets sale to the government Sunday came with a stay that allows for appeals and at least one group is appealing. GM had argued it would be liquidated if this sale of assets were not approved. The United Auto Workers supports the reorganization plan, and if it survives appeals the plan will implement the UAW Retiree Health Settlement Agreement. Two other unions – the IUE-CWA and the United Steelworkers – objected to the assets sale because they said it would strip GM of assets needed to continue to pay for health care for 50,000 IUE-CWA and USW GM retirees and dependents. IUE-CWA said a three-day hearing leading up to the judge’s decision to approve the assets sale “clearly demonstrated that the U.S. Treasury Department decided to strip more than 50,000 GM retirees of their right to health care”. Those non-UAW retirees are not covered by a health care trust fund as UAW members are. IUE-CWA attorney argued that GM was subverting bankruptcy law protections by selling assets before it engaged in a process called 1114 over GM’s right to cut retiree health care. If the GM assets sale goes forward the U.S. government will own about 60 percent of the new company in return for providing $60 billion to the new GM.