Feds To Receive 70% Of GM Stock, UAW 17.5 %

Law360, New York (May 26, 2009, 12:00 AM EDT) -- The U.S. will reportedly infuse General Motors Corp. with $50 billion to aid its reorganization and will receive 70 percent of its stock after it emerges from bankruptcy. Meanwhile, the United Auto Workers union will receive 17.5 percent of GM's common stock, in a deal a prominent employment attorney called "a complete anomaly."

The UAW announced on Tuesday that its local leaders had unanimously voted to recommend an agreement modifying a 2007 labor agreement with GM and changing a trust for retiree health care.

Neither GM...
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