By Tom Gantert | Michigan Capitol Confidential
LANSING — If 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.
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