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GM poured billions into stock buybacks then closed plants

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Donald Trump is blaming the UAW for General Motors’ Lordstown, Ohio, plant closing. A Republican blaming a union for a massive company’s actions is not so surprising, but Trump is claiming that union dues are responsible, which is both strange and ignorant. Union dues are paid by workers to their union; they don’t come from the company. But a new report from Hedge Clippers and the American Federation of Teachers offers a better idea of who to blame for the Lordstown plant closing.

And guess what! GM, the company that decided to close the plant, says it needs to make $4.5 billion in cuts—through layoffs and plant closings—to survive. But “GM has given over five times as much money—$25 billion—to Wall Street hedge funds and other investors in the past four years, including over $10 billion in controversial stock buybacks.”

So, yeah. GM has money for stock buybacks, but not to keep its plants open and its workers employed.

This blog was originally published at Daily Kos on March 23, 2019. Reprinted with permission. 

About the Author: Laura Clawson is labor editor at Daily Kos.

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