Originally Posted By: Kruse
Originally Posted By: PT1
Originally Posted By: Johnny
Did I hear this correct, that when GM shuts down for 90 days the workers still get something like 85% of their pay.
Not sure if they still get sub-pay or not. If they do then GM deserves Chap11 for sure.
Isn't there some law that says if a plant closes down, the workers have to be paid for 60 days afterwards? (Or something like that....)
Does this law apply if a company goes bankrupt?
If so, maybe the union won't have too much leverage when (if?) GM reemerges from bankrupcy.
If GM files Chapter 11 their union contract and all other contracts like vehicle warranties become void. The workers get nothing as the company no longer has any authority to pay bills as all of that is handled by the bankruptcy court. creditors & bondholders get first shot, preferred & common stock holders get the next shot but usually by then all the cash is gone. No one ever gets even 1/2 of what they are owed. This is how a company discharges it's debt and remains in business. I am assuming GM would continue at least 1 shift of operations at all 13 of their US plants but the wage rates and work rules won't be anywhere near what they were. If the UAW strikes then GM can hire replacement workers.