Friday, June 05, 2009

Which is the favored union?

The greedy capitalists who lost all of their shares of ownership of Chrysler included public employee unions in Indiana - teachers and police officers. All shareholders got nothing for their ownership shares. Why take away from these public employees and give to the United Auto Workers? Uh, Mr. President? Indiana Teachers and Cops vs. Chrysler - BusinessWeek:
As gas prices hovered around $4 a gallon and American automakers watched their pickup-truck and sport-utility sales plummet last summer, investment managers for some 100,000 Indiana teachers, police officers, and other civil servants poured millions of pension dollars into what the funds considered a safe investment: secured debt in Chrysler. Now, as the company speeds toward an exit from bankruptcy court, they are crying foul. On Friday, June 5, the Indiana State Teachers Retirement Fund, the Indiana State Police Pension Trust, and the Indiana Major Moves Construction Fund will attempt to block Chrysler's structured bankruptcy and sale to Fiat (FIA.MI) in New York's Second U.S. Circuit Court of Appeals. The group argues that the U.S. government's intervention in the bankruptcy is unconstitutional, since the proposed plan will pay back unsecured lenders before those that were secured. The unsecured creditors and the United Auto Workers contend the sale is fair and is supported by a majority of Chrysler's creditors.
The Seattle Times forgets to mention that the pensions that lost are of public employee unions.

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