Seeking Alpha
Profile| Send Message|
( followers)  
According to a report in today's Detroit New (www.detnews.com), GM (GM) retirees gathered in U.S. District Court yesterday to challenge the UAW agreement with General Motors to cut the benefits of retired worked to the tune of a $1 billion savings. Since the retirees did not vote and current UAW workers did, the court gets to have the final say.

The deal calls for retirees to pay a piece of their own healthcare costs. The former hourly workers believe they were promised free healthcare for life.

Well, the line starts at the back of the room, or maybe out on the street since so many people want a chunk of the GM revenue.

I think we can safely say now, that this is not going to work. GM can sell its part of Suzuki and a part of GMAC. It buys time, but not a solution.

What there retirees want is just the beginning of what the current UAW members fear. GM will ask for similar concessions from them. They can stop worrying about it. It's going to happen.

If the members of the UAW, past and present, don't begin to think in real financial terms about the future of GM, they are going to end up with much less than they bargined for. There is only so much to go around.

Source: GM Retirees, The Line Starts Here (GM)