Another attack on Unions

E.T.I. 2009

Executives get hundreds of millions no matter whether the company sells cars or goes belly up.

From the Wall Street Journal, September 11 2007

As GM walked into the negotiations, the 54-year-old Mr. Wagoner's top priority was leaning on the union to further address the auto maker's health-care burden. The company has about $50 billion in retirement obligations for UAW retirees and their families, and that liability results in $3 billion in cash expenses annually, or nearly $750 per light vehicle sold last year in the U.S. As GM, which already extracted concessions from the union on health care in 2005, sees sales in North America decline and medical expenses inflate at double-digit rates, the burden gets heavier by the day.

As part of the negotiations, GM put two proposals on the table for the UAW, according to people familiar with the proposals. One involves the establishment of a union-run health-care trust, or VEBA, which would be funded by GM cash, debt and possibly stock.

VEBA A Voluntary Employees Beneficiary Association would save GM a lot of money, and put all the risk on the employees. No offer was made to pay more in better times. If the Union won't accept the VEBA GM is making threats that will let them sell for less than Toyota. GM is pushing the VEBA, telling the UAW that "the arrangement would protect against unilateral retiree health-care cuts by the auto maker in the future if needed."

Did you hear the threat? Pay up or we cut the throats of the old people.

Health care costs are going up. No question. I would not trust the government to continue to pay anything they agreed to but I would rather trust the Union to do a good job, than to hire it out to a company like Anthem.

A little more from the Journal:

While developing close ties with the union and earning the trust of union officials who are loath to cede ground to the auto makers, Mr. Wagoner has also taken steps to reduce GM's reliance on the UAW, significantly expanding sales in emerging markets and accelerating efforts to reorganize the company's manufacturing base into a global footprint.

All Non-Union, low paying jobs. A Mexican worker can not buy the car he or she builds. When all the wages are trash who will they sell to? Henry Ford raised wages, and in turn sold cars to his employees and made his money while paying more than other industries.

Lots of work, lots of sales, but the hourly worker should take the hit, the failed executives making millions for themselves and losing money for their investors.

I know this is not Maine, these are probably not your relatives. I also know that the more take backs that are successful the more our legislators are going to use those take backs to justify coming after State Employees. Please get involved now. Comment here, call your legislator. Email a politician. Tell them your family is not on the menu.
E.T.I. 2009

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