Originally Posted by TomServo
Here's the rub as I see it:
"The government will put other conditions on the loans, Bush said Friday, including making pay competitive with foreign automakers with large U.S. operations such as Toyota and Honda."
I thought the UAW said they were done making concessions since they already have plans to get to these levels in 2010.
If they don't agree to make speed up the time table for the cuts, what happens???
The companies must show a positive cash flow (they don't have to be in the black, just show they are bringing in more money than they are spending) by March 31st or the loans will be retracted.
They must also have the cost structure in line with foreign competitors by the end of CY 2009.
So, the UAW basically has untill the end of next year to implement (not just pass, but must be fully implemented) more concessions or the companies forefit their loans.
Gettlefinger has to take it now. No more discussions and negotiations.