This editorial appeared in The Kansas City Star.
As Chrysler submitted its bankruptcy filing Thursday, the fate of General Motors' latest restructuring plan was still being hashed out. The GM plan – like Chrysler's proposal – raises troubling questions.
Start with the fact that the federal government would receive at least 50 percent of the stock in GM, in exchange for forgiveness of half the loans provided by taxpayers.
If that causes a double-take, there's more: Washington would effectively go into direct partnership with the United Auto Workers.
Under the plan, GM proposes to give the UAW a 39 percent share of the restructured company. That would pay half the $20.4 billion GM owes a special fund to cover retiree health-care costs.
Altogether, the government and the union would end up controlling 89 percent of GM – a troubling prospect, given the potential conflicts that could arise.
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