newtraveler

Auto Industry: In for a Penny, In for a Pound

OK NOW I get it! SHOW ME THE MONEY!!
At a Glance: GM's Deal with the UAW
The United Auto Workers and General Motors tentatively agreed Wednesday to a contract that ends a two-day strike — the first nationwide walkout against the automaker in 37 years. Both sides said they are pleased with the new contract, which has yet to be approved by the union. Here are a few of the highlights:

Legacy Costs: The new contract transfers responsibility for retiree health benefits from GM to the union. Under the agreement, the UAW will hire a financial company to manage the health care trust. That allows GM to clear a $50 billion liability from its books — which the company says has hindered its ability to raise funds and compete against foreign rivals. Still, GM will have to pay about 70 percent of that obligation — some $35 billion — to fund the new health-care trust.

New Workers: New unionized workers in certain non-production jobs would be hired at lower wages. That could be a big help for a company that spends upwards of $70 an hour on wages and benefits for janitors. In exchange, the UAW gets a commitment from GM to keep union employment at the current level of 70,000.

Signing Bonuses: GM workers will receive a signing bonus worth thousands of dollars to accept the deal. But those workers give up their cost-of-living adjustments, and the company gains more control over setting future salaries.
Job Security: The new contract "will absolutely protect their jobs and keep jobs from being reduced," said UAW President Ron Gettelfinger. He offered few specifics, but said the number of jobs at GM would be "pretty much the same, if not higher" when the contract concludes in 2011. But job protection provisions don't go into effect until after GM completes a planned restructuring— which includes cutting 30,000 jobs and closing all or part of a dozen plants by next year.

Auto Industry: In for a Penny, In for a Pound

The unions collected the money to provide benefits to its members, WHAT HAPPENED TO THE MONEY? Where are the promised benefits? How about federal Pension insurance, was mandatory, WHAT HAPPENED? The UAW has put our economy in a down hill spiral with the full support of the democrats. They need to stand up and face the fire with the voters, and SHOW US THE MONEY!! and pick up the tripple golden FLEECE AWARD that they deserve