UAW Rejects Retiree Health Care Proposal

[Omaha Steve]

Source: Associated Press

DETROIT (AP) — General Motors Corp. and the United Auto Workers continued to discuss the automaker's proposal to pay the union to take on retiree health expenses, even though GM's latest offer on the issue was rejected by the UAW president, a person who has been briefed on the talks said.

The person, and a union local leader who also was briefed on the talks, said negotiators have wrapped up work on all noneconomic issues and are trying to figure out the health care piece because the rest of the contract, including job security promises, pay and health insurance contributions, is contingent upon it.

Both people requested anonymity because the talks are private. Each said the UAW is still crunching numbers on GM's proposal to offload most of its $51 billion in unfunded retiree health care costs on the union.

GM spokesman Tom Wickham and UAW spokesman Roger Kerson declined to comment on the talks Thursday.

Read more: http://money.excite.com/jsp/nw/nwdt_rt_top.jsp?news_id=ap-d8rpl4900&

[Robbien]

1. Unfunded benefits means that GM failed to provide funding for

benefits it promised to provide in prior years' union contracts. GM should be sued for that, not negotiating it into a current year union contract.

[Sherman A1]

2. Agreed

GM made a Deal and is now trying to wiggle it's way clear of the promises and obligations that it entered into freely. Yes, pensions and healthcare are expensive, but no one held a gun to GM Management's to agree to them. They took the easy way out in those negotiations by make the deal better for retirees in the past and just pushed the issue to a later date, when I expect those negotiating those past contracts would be long gone and living a good life on their own pensions and fat retirement packages.
GM would have half the problem the do now if they could get a car off the assembly line that would be a good value to the consumer and get better mileage. They were behind the curve in the 1970's and they are once again behind the curve.

I drive to work everyday looking at a stupid Chevy Billboard that says "Don't Drill for Oil --- Grow It" or something like that promoting their E85 vehicle line. Gosh, they couldn't just build cars that get better mileage to start with, now could they?

:rant:

[unkachuck]

3. what????

"...GM's proposal to offload most of its $51 billion in unfunded retiree health care costs on the union."

"The UAW is seeking to trade taking on the trust for pledges from GM that it will build new vehicles in U.S. factories, the people said."

....pledges?....what the hell is GM's word worth?....if GM wants the UAW to take on management responsibilities then the UAW should demand a piece of General Motors with plant-closure veto power....

....hock Black Lake and tighten your belts, this is going to be a long one....