With Colt Defense LLC “enmeshed in a bankruptcy case” and its future–financial and otherwise–in question, the union which represents workers at Colt is seeking a bailout from the Connecticut government; a bailout that will ultimately be funded by Connecticut taxpayers.
Breitbart News previously reported that Colt filed for chapter 11 bankruptcy in mid-June. We also reported the irony of the fact that Colt led the charge for gun control in the mid-1990s–under the direction of then-company CEO Ronald L. Stewart–but is now bankrupt.
During his tenure as CEO, Stewart said:
I’m trying to address the question of how do you operate the gun safely so that you don’t injure somebody. It doesn’t make sense to stake out a position that is perceived by the public to be anti-safety….I’m not a gun nut, I’m not even a member of the NRA.
Now the United Auto Workers union, which represents Colt workers, wants a bailout.
According to the Hartford Courant, Mike Holmes–shop chairman of the UAW Local 376–said, “We believe it’s in the interest of all parties to come together to preserve and protect this legendary company.” And UAW attorney Mike Nicholson said, “We’ve had discussions with the [Connecticut Department of Economic and Community Development] commissioner Catherine Smith,” regarding ways in which the state could help–be that “a grant or a loan.”
In 1990 the state of Connecticut dished out “$25 million [to Colt] as part of a deal to end a four-year strike that had started in 1986.” Taxpayers in the state lost “all but $4.3 million of the $25 million.”
The Connecticut Development Authority (CDA) “provided $2 million in loan guarantees while Colt was in bankruptcy in 1992.” In 1994 they provided another “$10 million” as Colt exited bankruptcy.
Department of Economic and Community Development’s Catherine Smith will not comment on what the state is ready to do–or not do–this time around.
Follow AWR Hawkins on Twitter: @AWRHawkins. Reach him directly at email@example.com.