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Reports: GM, Chrysler bailout deals bar strikes

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[January 09, 2009]  DETROIT (AP) -- Newspaper reports say General Motors Corp. and Chrysler LLC would be in default of their multibillion-dollar federal bailouts if their workers go on strike and could be forced into bankruptcy.

HardwareThe Detroit Free Press and The Detroit News report Friday that the default is part of the deal GM signed with the Bush administration last month to get $13.4 billion in loans. The Detroit News reports Chrysler's loan deal has a similar provision.

The United Auto Workers isn't a party to the deal and hasn't threatened a strike.

The Free Press says if GM defaults on its loans, the U.S. Treasury Department could demand remand repayment and force GM into bankruptcy.

The UAW and the automakers have a Feb. 17 deadline for concessions to lower labor costs.

[Associated Press]

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.




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