Canadian Auto Workers (CAW) union national representative for GM workers, John Scanlan, told Reuters on Friday that efforts by General Motors to sell its GM Electro-Motive train unit to a private equity firm had cleared a hurdle.
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“We heard yesterday that one of the major stumbling blocks had been overcome,” Scanlan reportedly said. The CAW represents workers at a Canadian Electro-Motive plant in London, Ontario, Reuters noted.
CAW president Buzz Hargrove and a person close to the talks reportedly told Reuters in September that GM is in discussions on a joint bid by Greenbriar Equity Group, a $US700 million private equity fund led by former Chrysler Corporation vice vhairman Gerald Greenwald and Berkshire Partners, a $3.5 billion buyout fund.
Scanlan told Reuters some issues in the sale talks that remain to be settled include concerns by the United Auto Workers union, which represents workers at a United States Electro-Motive plant in LaGrange, Illinois.
Scanlan also reportedly said Berkshire has made it clear that it is not interested in Electro-Motive unless it can buy both the Ontario and the Illinois plants.
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