Big Labor’s Ohio win doesn’t end states’ fiscal crises
By David Shepardson/The Detroit News
A federal bankruptcy judge won’t dismiss a lawsuit filed by the United Auto Workers against General Motors Co. seeking $450 million in payments to a retiree health care trust fund.
In April 2010, the UAW sued GM in Detroit, contending that the Detroit automaker was obligated to make a $450 million contribution to a health care trust fund under a June 2007 agreement.
GM asked U.S. Bankruptcy Judge Robert Gerber to hear the case. He declined to intervene — and instead ruled the U.S. District Court in Detroit can hear the lawsuit.
From The Detroit News: http://detnews.com/article/20110829/AUTO01/108290392/Bankruptcy-court-won’t-block-UAW’s-$450M-GM-suit#ixzz1WRruqdDx
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I think that restructuring through bankruptcy could be a really good thing for the company. Bailouts aren’t going to help in the long run.
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