Wrongo. If GM goes bankrupt their entire retirement liability becomes the responsibility of the Federal Government. GM is probably trying to renegotiate their retirement funding liabilty and the union has decided it is better to saddle the feds with it. They have the feds in their back pocket they will get a better deal with them.
The union has absolutely no incentive to negotiate their contract down. They know the feds are going to step in in a big way. This is the same reason that banks are holding on to their defunct mortgages. Uncle Sam will pay more for them than they can get from a private investor.
MONOPOLY OF AUTO LABOUR NOW THATS GREAT IDEA!