UM: Auto Industry

The Freep looks at the implications of a provision in the federal loan to automakers, which would require GM and Chrysler to return the funds if the UAW went on strike. The article quotes John Pottow, a UM law professor, who likened the provision to ones found in debtor-in-possession financing used in bankruptcy. ”They’re not preventing the union from striking. The union can … strike if it wants to. They’re simply letting GM, the company, borrow money and saying as a creditor, ‘Your loan is in default if your employees strike.’ ” [Source]