"What amazed me in looking at yesterday's Detroit Free Press, Detroit News and Wall Street Journal was how much GM met most of its objectives! It didn't only get VEBA, but the contract holds down wages, seems to divert COLA to health care costs and gains more labor "flexibility." (I've sent this out to the SOS list, so apologize for duplication.)
Here's what I note GM workers stand to lose: * no wage increase over 4 yrs. * COLA diverted to off-set health care costs for active workers * underfunded VEBA set up (70% of "liability") rather than fighting for national health care--and this will further tie union to company because funding will undoubtedly include significant amounts of GM stock * 2-tier wages and benefits for new hires into what the company (and union?) define as "non-core" jobs in the plant (i. e., janitors, drivers, etc.)
What did negotiations "win" for the work force: * $3,000 signing bonus + lump sum bonuses of 3%, 4% & 3% for last 3 yrs. of contract--a lot of up-front money so they can steal a lot more from your back pocket, but lots of workers will feel they better take what they can get * all the temporary workers at GM will be made full-time--this will guarantee the temp vote "yes" (I'm unclear about whether the temps will make 1st-tier wages and benefits or not) * early retirement offers--so people close to retiring can bail out (and GM can hire at the lower wage) * pension increase for retires, which is canceled out through higher co-pays * the "promise" of job security--whether or not there are any specifics attached to the promise"