BUSINESS BRIEFS
UAW may own 55% of Chrysler after vote
Advertiser News Services
STERLING HEIGHTS, Mich. — The United Auto Workers union will own 55 percent of a restructured Chrysler LLC and its retiree healthcare trust will get a seat on the board if union members vote to approve contract concessions this week.
Chrysler stock could even be traded publicly again, as there are mechanisms for the UAW to sell shares to fund the healthcare trust.
Factory-level union leaders voted unanimously last night to recommend approval of concessions that union President Ron Gettelfinger said would help keep the automaker out of bankruptcy.
A summary of the revised Chrysler-UAW contract says that Italian automaker Fiat Group SpA eventually will own 35 percent of a restructured Chrysler, with the remaining 10 percent stake divided between the U.S. government and secured lenders, mostly banks and hedge funds.
The Obama administration required that equity fund at least 50 percent of Chrysler's $10.6 billion obligation to a union-run trust that will take over retiree healthcare costs starting next year, according to the summary.
It also said that under the agreement, workers will no longer get most of their pay if they are laid off. Instead, they will get supplemental pay from the company equal to 50 percent of their gross base pay.
VERIZON EARNINGS UP 5% AFTER ALLTEL ACQUISITION
NEW YORK — Verizon Communications Inc. said yesterday its earnings grew 5 percent in the first quarter, boosted by its acquisition of Alltel Corp. and strong demand for its wireless, Internet and TV services.Verizon, which is the second-largest U.S. telecommunications provider, earned $3.21 billion, or 58 cents per share, compared with $3.05 billion, or 57 cents per share, a year ago.
Excluding charges related to its acquisition of Alltel, Verizon earned 63 cents per share — 4 cents higher than analysts polled by Thomson Reuters had expected.
