AFSCME 3357-HOF'S BLOG

Chrysler Plastered by Judge's Plastech Decision
Tools must stay put.

Federal Bankruptcy Judge Phillip Shefferly ruled that Chrysler can't just pick up its ball and bat and go back home. He ruled against Chrysler in its bankruptcy dispute with Plastech. The story in the Detroit News is here. The judge said that even though Chrysler owns the tools that it wants to recover from the Plastech facility, possession by Plastech is enough for Plastech to retain the tools while it tries to restructure in chapter 11 bankruptcy. To allow Chrysler to recover the tools would be to doom the plan to failure.

Interestingly, Chrysler's position was supported by many of Plastech's other customers, including General Motors and Toyota, even though those customers' could be delayed or jeopardized should Chrysler's tool recovery force plant shut downs. The saga continues. . .

UAW Approved Vehicle Website

Last week there was controversy over whether the Toyota Matrix was an approved vehicle by the UAW. I checked the UAW-made website. It lists some Corollas as being approved, but the Matrix is NOT listed. Apparently Toyota has shifted its production mix, moving the Matrix out of the NUMMI plant and the Corolla in. The Corolla is produced at numerous plants though, so don't assume that any Corolla that you see on a lot will receive the UAW stamp of approval. More to the point, don't assume that if you drive even your UAW-built Corolla to a pre-retirement seminar at a UAW hall that you'll receive a warm welcome.