According to conditions written into the federal loan agreement that General Motors signed last month, the automaker will be forced to default on the loan should “any labor union or collective bargaining unit shall engage in a strike or other work stoppage.” This stipulation means that if the UAW was to strike, GM would be forced to pay back the loan immediately – forcing GM into bankruptcy.
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Hey, big-shot auto execs! Remember how you went to Washington and found out that everybody outside ZIP codes beginning with 480 hates us because back in the 1970s they bought a Pinto or a Chevette or a Cordoba? Then you had to grovel and beg and plead and give up your corporate jets just so you could meet payroll for the next 10 weeks?
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The federal and Ontario governments have announced a 4 billion Canadian dollars ($3.29 billion) bailout package for the Canadian subsidiaries of the Detroit Three automakers.

The announcement follows a pledge Friday by President George W. Bush to offer $17.4 billion in emergency loans to General Motors Corp. and Chrysler LLC.

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