The only problem is that bankruptcy won't necessarily get rid of the union contract. Law makes it difficult to get rid of union contracts.
I have heard that it may help GM do something with future benefits. Somebody needs to stand up to the UAW and let them know that it's not unrealistic for the Big Three to take all production overseas.
Unions were so successful in obtaining higher and higher wages for their members that they got all their people members outsourced to Mexico