Give GM and Ford to the workers

[chrisclub]

GM
$3.02/sh
Book value: -$98.00/sh
Mkt cap: $1.84B

Ford
$1.80/sh
Book value: -$0.83/sh
Mkt Cap: $4.3B

Let them both file Bankruptcy to clear the debt.

Pay existing shareholders current stock price.

Issue new shares and give 100% to the workers based on years employeed and maybe 1x for non-exempt, 2x for exempt.

Let the workers vote in a new BOD and hire new executives.

[gristy]

1. Hmmm. I think I like it. But Ford and GM bondholders will have a fit.

[dkf]

2. If they can't get funding its still dead in the water.

Also, would the employees be able to figure out how to create cars that sell?

[screembloodymurder]

5. Say what?

All they have to do is follow Honda.

[dkf]

7. Why haven't the unions been pushing this?

Or if they are the owners do they dump the union?

[99th_Monkey]

12. UAW is no stranger to Worker-Ownership

Uaw Working to Take 70 Percent Stake in Chrysler

The United Auto Workers is studying a long list of proposals from a group of Chrysler workers in Toledo who are pushing for employee ownership of the “for sale” automaker. 25 hourly workers who call themselves the “Employee Buyout Committee” is proposing for workers to take 70 percent stake in Chrysler— producer of quality Chrysler mufflers — with DaimlerChrysler retaining the remaining stake.

According to Michele Mauder who works at Chrysler’s Toledo Supplier Park, where the Jeep Wrangler is manufactured and some Chrysler parts are produced like the Chrysler muffler — who is a member of the committee, the workers believe employee ownership us the best option for Chrysler’s 50,000 UAW workers. She added, “The bottom line is the corporation won’t take the hit, it’s the employees, the shareholders and the consumers. So we need to work as a team.”
http://www.articleswebsite.net/detail/uaw-working-to-take-70-percent-stake-in-chrysler-18567/

[dkf]

8. But my 1st point still stands.

Companies need funding, especially if you want to revamp things.

[endless october]

3. it is flat out incredible to see the stock prices that low.

very tempted to buy as soon as it becomes clear what's going to happen. although i don't have money to lose, so i'm holding off. i'm not much of an investor.

[GrizzlyMan]

4. I'm watching it closely as well

I think one of them will survive, most likely Ford.

[endless october]

6. i hope so.

i have a Ford that i'm quite happy with and would consider buying another once my finances improve.

union built, and built well.

[FarCenter]

9. The UAW pension fund could buy them easily

But the trustees would be in breach of their fiduciary duty for investing the money so foolishly.

The GM pension fund was over $100 billion. May be less now.

[dkf]

15. Market cap is 1.84B.

That's less than 2% of the fund. I'd think it was a reasonably low % of the portfolio.

[Clovis Sangrail]

10. Nice thought but I don't see how that would work

I'm not a finance guy but:
GM has 610 million shares outstanding
Buying them all back at $3.02/share would cost $1.8 billion that they don't have... and then they give those to employees?

I'm all for workers having a stake in business, and the idea of replacing all of the higher ups should be a part of any recovery plan... but this just seems to add a bunch of debt and doesn't really guarantee that there would be any major change in how business is done.
Dollars to doughnuts a good chunk of existing BOD and execs would retain leadership positions.

[hootinholler]

16. It worked at Harley Davidson

The workers bought them from AMF, IIRC.

-Hoot

[Clovis Sangrail]

17. operative word being 'bought' /nt

[goforit]

11. Isn't that what Southwest Airlines did? Every then is part of the team to Compete?

[99th_Monkey]

13. ABSO-FUCKING-LUTELY! Outsource-proof those jobs, empower workers to hire their own management

worker ownership was once the centerpiece of the Union movement, during the late 1900s, before
the movement opted to focus primarily on collective bargaining. I see no reason Unions wouldn't
want to reclaim this rich heritage.

Worker ownership would seem to fit hand-in-glove with Obama's populist participatory campaign rhetoric.

Worker-owners are more productive, their jobs are much more stable, especially where their ownership
includes significant controls, such as hiring and firing management.

[jwirr]

14. Absolutely.

[4_TN_TITANS]

18. Socialize the Losses!!!!

Great idea - leave the workers holding the bag of busted ass companies!
:sarcasm: