Unions Make Out Like Bandits in GM Offering

Jillian Bandes | December 01, 2010 10:43 AM

GM held a stock offering to pay back the government's $50 billion bailout. It's great news that they were able to do this. It's horrible news to look at the winners and losers during the sale.

Washington Times:

General Motors Co.'s recent stock offering was staged to start paying back the government for its $50 billion bailout, but one group made out much better than the taxpayers or other investors: the company's union.

Thanks to a generous share of GM stock obtained in the company's 2009 bankruptcy settlement, the United Auto Workers is well on its way to recouping the billions of dollars GM owed it — putting it far ahead of taxpayers who have recouped only about 30 percent of their investment and further still ahead of investors in the old GM who have received nothing.

This union boon isn't surprising considering the priorities of the White House's auto task force, said Glenn Reynolds, an analyst at CreditSights. According to Reynolds, the unions interests were considered way ahead of any other interests.