UPDATE: UAW BACK TO WORK …NOW THE QUESTIONS BEGIN
Update:
Rick Haglund reports:
Private equity firms such as Cerberus try to maximize profits at companies they own while investing as little as possible of their own money, said Alan Baum, an analyst at The Planning Edge in Birmingham.
“The last thing they want to do is lay out billions of dollars for retiree health care,” he said.
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It appears that GM came out ahead in the negotiations, but the employees and retirees should be happy with the outcome.
DETROIT
the historic agreement would shift the burden of retiree health care from GM to the union and give workers bonuses and lump-sum payments. The person requested anonymity because the contract talks are private.
The agreement includes GM’s top priority in the negotiations ” shifting most of its $51 billion unfunded retiree health care obligation to a UAW-run trust. The company would pay about 70 percent of the obligation into the trust, called a Voluntary Employees Beneficiary Association, or VEBA.
The union would then invest the money and take over health care responsibilities for about 340,000 GM hourly retirees and spouses.
My first thought on this was that now it is up to the union to make sure that the funds are free and clear of any criminal element. Secondly, will the UAW continue to provide the retirees with the benefits packages that they were promised?
The UAW still needs to determine who they will negotiate with next, but their position is weakened. I think that they thought that the candidates would rally around them, but alas, it wasn’t to be. I can’t say as I blame them though…how do you rally around a group that says they want job security and shows it by walking off the job?
September 26, 2007 - 06:00 AM on September 26th, 2007
I can see the crime families giving standing ovations to this pact. How many billion dollars can they plunder? With the Democrats in Congress weakening the oversight of the unions, the mob will have a field day.
Let’s start a pool on how soon the union pension plan will collapse and the taxpayer have to pick up the tab.
September 26, 2007 - 09:10 AM on September 26th, 2007
PCD- I thought the exact same thing!
September 26, 2007 - 09:24 AM on September 26th, 2007
I think you are right. GM accomplished what they wanted, and that was to get the monkey off GM’s back. It’ll be on the taxpayers backs soon enough.
September 27, 2007 - 02:16 PM on September 27th, 2007
You folks are aware, I’m sure, that this is excellent news for investors.
The stock market rose when this agreement was announced.
This really worked out well for everyone involved.
And to think you righties were screaming and moaning about the workers shouldn’t strike.
Looks like it was a good idea, and maybe an infusion of extra life for unionism in America.
September 27, 2007 - 03:54 PM on September 27th, 2007
What exactly did the strike accomplish, SFL? Nothing as far as I can see.
September 27, 2007 - 04:14 PM on September 27th, 2007
4- Well for one that is always lecturing us about how the poor carry this country on their backs, I’m a bit surprised at you SFL.
My stocks have been doing great for the past few months…I have not had much to complain about, so how do my gains help the people that were layed off at GM suppliers?
The stock market gets jittery with uncertainty and rallies when issues are resolved…