GM bankruptcy could affect former workers - WKOW 27: Madison, WI Breaking News, Weather and Sports

GM bankruptcy could affect former workers

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WKOW (MADISON) --  GM's new restructuring plan leaves the United Auto Workers with a smaller stake in the company than previously expected.

That's worried former GM workers, wondering if their pensions will come up short.

Both GM and the union are mum on how bankruptcy protection would affect workers from the Janesville plant. But we spoke with a bankruptcy expert, who says in these situations: no one wins.

Jim Seward, a UW Finance Professor, says, "GM is underfunded though, so there's not enough in there right now to pay what they've obligated themselves to pay."

Seward says if GM does file for bankruptcy protection, it could terminate some or all of its pension plans. If there are reductions in pensions, employees will receive notice at least 60-days ahead of time.

GM officials would not comment: they say they're not necessarily filing for Chapter 11.

If you're worried about your financial situation, the best recommendation is to get in contact with your union representative.

If GM does declare bankruptcy, it would be the fourth largest in U.S. history.

 

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