Despite the disaster in Detroit for U.S. automakers, the United Autoworkers may come out ahead in the situation. Specifically, the union could walk away with a 50% or more stake in Chrysler and 30% or more stake in General Motors if the restructuring plans developed this week go through. UAW members have already approved the deal with Chrysler, despite the large concessions in wages and benefits that go with the agreement. Incidentally, pensions and healthcare for retired workers will emerge relatively unscathed. The UAW has had much support from the current Democratic administration. Meanwhile at G.M., bondholders are angry about the proposed plan which will leave them with only a fraction of the company.
See "As Detroit Is Remade, the U.A.W. Stands to Gain", Micheline Maynard and Nick Bunkley, The New York Times, April 29, 2009