Mexico May Get Kenosha WI. Chrysler Jobs

[Midnight Mike]

I thought President Obama was going to work on keep jobs in the United States

http://www.todaystmj4.com/news/local/44325207.html

Union officials and politicians believe Chrysler is shifting work to Mexico that had been slated for Kenosha.

UAW Local 72 president Glenn Stark called Chrysler’s plan “a betrayal of Wisconsin taxpayers.”

Workers filled the union hall Monday afternoon for a rally to signal they will not allow their plant to close quietly.

“We want Chrysler to emerge from this bankruptcy as a strong and competitive company,” UAW regional representative John Drew told the crowd. “We want them to emerge with Kenosha as a part of it.”

Gov. Doyle sent a letter to President Obama on Monday, urging the administration to amend the bankruptcy filing to keep the Kenosha plant open. Doyle is working on an incentive plan aimed at persuading the company to keep its Wisconsin operation running, according to release from his office.

[Matt Molnar]

I suspect the UAW may have sold out their workers in exchange for a larger chunk of $$$, which otherwise they would not have been entitled to under bankruptcy law.

Under the White House's deal, somehow the UAW will get 50 cents on the dollar from Chrysler for their unsecured debt, while bondholders (SECURED debtholders) are only getting 33 cents. Bankruptcy law generally states that unsecured creditors are not entitled to ANYTHING until all the secured creditors are paid. This is why some bondholders are holding out. Is Obama patting the UAW on the back for their support? Who knows.

It's hard to see exactly what's going on with so many developments happening so quickly, but some day books will be written about this deal, and it's a good possibility that UAW management, Obama, Chrysler management and FIAT will all come out looking pretty bad.