Analysis: Details About the UAW/GM Tentative Agreement Spread Across the Web

By Katherine A, published Sep 27, 2007
Published Content: 14  Total Views: 3,551  Favorited By: 4 CPs
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Ever since the UAW and GM came to a Tentative agreement on Wednesday morning, and the UAW workers put down their picket signs, there have been questions raised on what contracts will actually say. Some of the details are sketchy and not very specific but the ones that are explained , if they are true, might not be the best for the UAW in the years to come. One of the most common details that we have been hearing about is the VEBA and we all know about the questions raised on this specific subject. In addition to VEBA, lets talk about the other specifics that not too many of us are addressing at this time, and what it will mean for the UAW workers now and in the years to come.

GM would pay the union cents on the dollar to take over $50 billion in retiree health obligations. The GM infusion will go into a voluntary employees' beneficiary association, or VEBA.

(GM is a big corporation, if they can't handle this obligation, what makes them think the UAW can? And were is the money going to come from to pay the people whom are going to handle and maintain the VEBA?)

A two-tier wage structure for non-manufacturing jobs: This would allow GM to pay wages as low as $12 to $15 a hour for jobs that do not have a direct link in making the vehicles, such as housekeeping, janitorial etc.

(So now we are letting these new and underpaid workers in. As a result, in the future negotiations, they don't care if the other workers rates go down. Which then they are more than likely to vote "yes" to a pay decrease, because it would not directly effect their pay.)

Temporary workers: GM wants to make 4,100 temporary workers now on the payroll permanent employees, which is a good thing, but they too will be paid at a lower rate.

(There again they now have the ball in their court, this gives them an advantage on getting pay decreases the next contract because these employees are already at a lower rate. 4,100 "yes" votes in their court.)

A special attrition program will clear out senior workers and make room for the new workers.

(Need I say more, the number keeps rising for these votes in GM's favor next contract due to new hires rolling in.)

Analysis: Details About the UAW/GM Tentative Agreement Spread Across the Web
Date: September 26, 2007
Location:
 USA
Comments
Showing Comments 1 - 4 of 4
 
 
should of waited til you saw the real facts

Posted on 10/06/2007 at 2:10:00 AM

 
The idea behind a VEBA is that once contributions are made, the principal should increase in value. Assets of the plan are protected from creditors, something that should be of interest to GM retirees given the BILLIONS of dollars the company has lost each fiscal year. I assume that taking a pay cut over the life of the contract is the price of admission for keeping jobs. It is likely the best either the UAW or GM would get.

Posted on 09/27/2007 at 7:09:00 PM

 
great article

Posted on 09/27/2007 at 7:09:00 PM

 
AWESOMe Article!!!The UAW members definently need to weigh all there options and get the'scoop' before voting takes place!!

Posted on 09/27/2007 at 4:09:00 PM

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