Uncovering the GM-UAW-Government Scam

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In summary, the speaker believes that GM, the union, and the government are all involved in a scam. GMAC has been separated from GM and has been eating a portion of the incentives offered on GM cars. The government has bailed out GMAC twice and this may have played a role in their actions. The profits of GM have been inflated to prepare for an IPO, and the rush for the IPO is driven by the upcoming UAW contract negotiations. The UAW cannot strike against itself and the government cannot hold a large stake, so Wall Street will be used to soak up any losses. The inflated profits will be used as the basis for a reset to old wages, plus any unpaid wages from the past year. The investment bankers are
  • #1
airborne18
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I follow GM and the union and the government are really playing a scam here. Beyond the criminal bailout.

First, they spit off GMAC. So there is not link between GMAC and GM anymore. But what they have been doing is having GMAC eat the a portion of the incentives offered on GM cars. And the government bailed out GMAC twice and I would bet that this had something to do with it.

So they inflated the profit of GM so they could get that IPO back on track.

But the real rush for the IPO lies in the UAW contract, which is up soon. The UAW cannot strike against itself, and they own a nice chunk of stock. And the Government can't be holding it large stake either. They need wall street to be holding the bag so the union can soak them when the contract comes up. And since the profits were inflated, they will use that as the basis for a reset to the old wages, plus whatever they were not paid in the last year.

Of course the investment bankers want to take it public at any cost, so they can make their nice percentage of the holdings.
 
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  • #2
airborne18 said:
I follow GM and the union and the government are really playing a scam here. Beyond the criminal bailout.

First, they spit off GMAC. So there is not link between GMAC and GM anymore. But what they have been doing is having GMAC eat the a portion of the incentives offered on GM cars. And the government bailed out GMAC twice and I would bet that this had something to do with it.

So they inflated the profit of GM so they could get that IPO back on track.

But the real rush for the IPO lies in the UAW contract, which is up soon. The UAW cannot strike against itself, and they own a nice chunk of stock. And the Government can't be holding it large stake either. They need wall street to be holding the bag so the union can soak them when the contract comes up. And since the profits were inflated, they will use that as the basis for a reset to the old wages, plus whatever they were not paid in the last year.

Of course the investment bankers want to take it public at any cost, so they can make their nice percentage of the holdings.

If this analysis is correct, it's massively depressing, but not surprising.
 

1. What is the GM-UAW-Government Scam?

The GM-UAW-Government Scam refers to a corruption scandal involving the United Auto Workers (UAW) union and General Motors (GM) in which UAW officials were found to be embezzling union funds and accepting bribes from GM executives in exchange for favorable labor contracts.

2. How did the scam come to light?

The scam was uncovered by federal investigators in 2019 after a series of raids and arrests of top UAW officials and GM executives. These investigations were prompted by a series of complaints and whistleblower reports.

3. What were the consequences of the scam?

The consequences of the scam have been far-reaching. Several high-ranking UAW officials have been convicted and sentenced to prison, and GM has been fined millions of dollars for its involvement. The scandal has also damaged the reputation of the UAW and raised questions about the fairness of labor negotiations in the auto industry.

4. How did the GM-UAW-Government Scam affect workers and consumers?

The scam has had a negative impact on both workers and consumers. UAW members have lost trust in their union leaders and have been left with smaller pay raises and reduced benefits due to the embezzlement of union funds. Consumers may also see an increase in the cost of GM vehicles as the company tries to recoup losses from the fines and legal fees incurred from the scandal.

5. What is being done to prevent similar scams in the future?

The UAW has implemented new measures to increase transparency and accountability within the union, such as requiring union officials to disclose their financial interests and prohibiting them from accepting gifts from employers. GM has also implemented stricter policies and procedures to prevent bribery and corruption. Additionally, federal agencies are continuing to investigate and prosecute individuals involved in the scam to send a message that this behavior will not be tolerated.

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