Uncle Sam Gives UAW $10 Billion for VEBA, 17.5% of GM, $2.5 Billion Cash, $585 Million Per Year

The UAW's bribe.

Uncle Sam Gives UAW $10 Billion for VEBA, 17.5% of GM, $2.5 Billion Cash, $585 Million Per Year

The Wall Street Journal reports theterms of the United Auto Workers (UAW) deal with the feds re: theirpayoff to join post-bankruptcy ?good? GM. Uncle Sam will ?contribute?$10 billion to the union?s Voluntary Employee Beneficiary Association(VEBA) health care superfund, paying off half of GM?s unfundedobligations in one fell swoop. The Treasury Department will also givethe UAW a $2.5 billion promissory note. GM (i.e., the federalgovernment) will pay off the note in cash, in three installments (2013,2015, and 2017). And just in case that?s not enough to entice the unionto join ?good? GM, the UAW will also receive 17.5 percent of the newpost-C11 GM (no longer a controlling interest) AND stock warrants for anadditional 2.5 percent of the reorganized company. The $6.5 billion inpreferred stock includes a nine percent cash dividend?that will pay out$585 million annually. Saying that, this is all subject to a federalbankruptcy judge?s approval.