EMD SOLD!!

[Guest]

The Builder of the F40PH and F59PHI has been sold by GM!!

 

[battalion51]

The transaction must still be approved by the Auto Workers Union, but it is likely that the sale will be completed as expected. I can only hope that the quality of EMD's work stays as good as it is. GE while a respectable builder doesn't have the longevity in an engine's life that EMD does, and MPI hasn't had time to prove itself as a builder. It'll be interesting to watch the battle as it starts a new chapter.

 

[AlanB]

The transaction must still be approved by the Auto Workers Union, but it is likely that the sale will be completed as expected. I can only hope that the quality of EMD's work stays as good as it is. GE while a respectable builder doesn't have the longevity in an engine's life that EMD does, and MPI hasn't had time to prove itself as a builder. It'll be interesting to watch the battle as it starts a new chapter.

Companies can be brought and sold 10 times over without union approval. What makes this one different? :unsure:

 

[battalion51]

From the Trains.com newswire:

The proposed sale is contingent on completing negotiations with the United Auto Workers Union (UAW) and the subsequent ratification by its members.

Need I say more?

The full article.

 

[AlanB]

From the Trains.com newswire:

The proposed sale is contingent on completing negotiations with the United Auto Workers Union (UAW) and the subsequent ratification by its members.

Need I say more?

The full article.

Ah, that makes sense now. It would appear that EMD is currently under contract negotiations with the union. So the buyer is waiting to see what the outcome/costs of that will be.

Otherwise, the union normally has no say in the sale of a company or a division of said company.

 

[The Chief]

Agree w/Alan completely.

Unions have no say in corp mergers or sales, so UAW wouldn't need to "approve" as it would not be in that position.

Exception may be if a union held 51 percent or more of said corp's stock.

 

[Amtrak OBS Employee]

Reading the article tells me that EMD in fact has not been sold yet! The sale agreement has been reached with the named buyer(s), however apparently no money has changed hands yet. Obviously, part of the deal involves the labor contract(s) to be ratified by the union's members or the deal doesn't go down (or as it appears). But as a former manager within part of a retail grocery chain, companies do not need union approval to aquire or divide, unless of course as "the chief" points out, a union owns the controlling shares of a corporation's stock!

It appears to me when contract negotiations are ratified, "EMD" will "officially" be sold within the first quarter of 2005. OBS...