Study: Feds Favoring UAW in Auto Bailout Cost Taxpayers Extra $26.5B

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michigancapitolconfidential.com — Union received benefits not normally associated with bankruptcy

f the United Auto Workers union had been treated like any other creditor during the General Motors and Chrysler bankruptcy, the cost to taxpayers would have been $26.5 billion less, according to a study released by the Heritage Foundation on Wednesday.

Instead, the federal government favored the UAW and the union recovered most of the money owed to its benefit funds. GM’s workers also didn’t take pay cuts normally associated with a bankruptcy, the study said. Secured creditors took a backseat to the UAW in the deal the Obama administration orchestrated.

"The auto bailout was actually a UAW bailout," the study concludes.

Daniel Ikenson, director of the Cato Institute's Herbert A. Stiefel Center for Trade Policy Studies who has analyzed the bailout, said the UAW received preferential treatment.

"The reason the government hand-held the companies was to achieve an outcome the UAW favored," Ikenson said. "Certainly the UAW got a more favorable deal. The UAW was definitely protected."

Ikenson hadn’t read the study yet when contacted, but wondered how the cost could have been as much as $26.5 billion.

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Posted by lastbaldeagle

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Considering that GM (Uaw/Government Motors) still owes tha taxpayers over $30 Billion was the bailout of the UAW beneficial to anyone other than the UAW and Obama's reelection campaign?

Yes, it relieved investors of cash that might have gone to Obama's opposition.

70%

No, the taxpayers and investors were raped for the benefit of Obama and his union cronies.

30%

This is not a scientific survey, click here to learn more. Results may not total 100% due to rounding and voting descrepencies.

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