United Auto Workers Back Fiat Deal

Ron Gettelfinger, the chief of the United Auto Workers, said on Monday that his union backs the idea of Fiat taking over the new Chrysler company. Chrysler, the American automaker that recently declared bankruptcy, will reportedly become part of Fiat once it re-emerges from bankruptcy. Both the White House and Chrysler believe that the bankruptcy proceedings should be completed in no more than 60 days.

While UAW will gain approximately a 55% stake in the new Chrysler company, Gettelfinger said that they will be selling the shares. The sale of the shares will go to pay for health care costs of the individuals in the union, which will be in the billions of dollars in the coming years.

Although some Chrysler creditors are making noise about how unfair it is for UAW to get such a big stake in the new Chrysler company, Gettelfinger disagrees.

Said Gettelfinger in a press conference in Detroit, Michigan: “Let’s be honest, it’s zero today. The equity is going to be stressed. This isn’t about finance, it’s about people that expected health care benefits for life.”

Some members of the UAW expressed concern about Chrysler becoming part of Fiat, a company based in Italy, but Gettelfinger didn’t share those concerns.

“Of all of the alternatives that were out there in front of us,” said Gettelfinger, “clearly this is head-and-shoulders above anything else.”

Chrysler (Image: Flickr)