• Apr 7, 2010
Once again, General Motors has found itself in hot water with the United Auto Workers. Way back when in 2007, GM signed a deal with Delphi to provide a total of $450 million for the UAW's Voluntary Employee Beneficiary – a trust set up to provide for retiree benefits, especially health care. So far, GM hasn't been willing to hand over the dough, and the UAW has decided to take The General to court over the issue.
The Detroit Free Press is reporting that the lawsuit claims GM denied the UAW its cash when the union asked for it last November and has refused to make payments ever since. As part of the automaker's bankruptcy filings last year, the company assumed all of its contracts with the UAW, including this one.

Delphi has been feeling the pinch of the economic slowdown in a big way, and found itself in bankruptcy court in 2005. When that happened, the company asked for concessions from the UAW, and managed to negotiate a pay cut of up to $10 per hour as part of the deal. GM has since snapped up four Delphi divisions during 2009, and word has it the automaker is seeking even further concessions from the union.

So far, GM hasn't said word one about the lawsuit.

[Source: Detroit Free Press]


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  • 18 Comments
      • 4 Years Ago
      Translation: The Voluntary Employee Beneficiary Association is probably running low on cash
        • 4 Years Ago
        It probably is. I hope the UAW understands now how difficult it is to run a health care benefit system. Money doesn't grow on trees.
      • 4 Years Ago
      Yes! Sue, Sue, SUE!
      Let's sue them until they start cutting wages because of a lack of funds.
        • 4 Years Ago
        And then sue them again for cutting wages?
      • 4 Years Ago
      As iQuack used to say, Unions are parasites that kill their hosts.
      • 4 Years Ago
      What happen to the $30 billion that GM paid the UAW?
      • 4 Years Ago
      Isn't this the equivalent to reaching in your left pocket for money to make your right pocket happy?

        • 4 Years Ago
        Basically. It's like when some idiot union striked over their pay being reduced and then the company went into Chapter 11 so they all lost their jobs.
        • 4 Years Ago
        A Union is a bond between a Man and a Man. The UAW is no exception.
      • 4 Years Ago
      This is not a good move of UAW.
      lossmaker GM can sell their factory for this.
      • 4 Years Ago
      UAW sucks. Underperforming, overpaid, and one of the primary reasons GM died (the other being poor mgmt that also gave the unions all that).
        • 4 Years Ago
        The country went out of business on GWB's watch. How soon we forget. It was Obama's administration that pulled it back from the brink.

        It's okay though, you don't have to say thank you.
        • 4 Years Ago
        It's like holding a gun to your head.......
        Don't give the union thugs what they want and they go on strike and the business goes out of business because competition takes over. Pay the unions and slowly go out of business
        because your not competitive
        Now a wonderful plan....... Obumer gives the unions what they want and helps them every way he can and the Country slowly goes out of business...........................
        • 4 Years Ago
        Dear Dr.
        GWB inherited a WAR and that cost $$$. The last 2 years of GWB the Dems has control of Congress and spent like mad. Now Obumer said GWB caused our recession BUT
        it was the Dems who caused this mess with the liberal approval of giving money to people who bought homes who had no business buying a home they couldn't pay for.
        AND spending OUR money for bailout's ETC. Now WE are on our way to bankruptcy

        Thank you Doc now go hug a tree and kiss your liberal friends and find someone else to blame...............................
        • 4 Years Ago
        It's quite simple actually when you agree to something you need to hold up your end of the deal that's the bottom line. Or get sued this has nothing to do with striking get an education!
      • 4 Years Ago
      remember those Coke Zero commercials where they had actors pretending to be executives at Coca Cola who meet with lawyers because they wanted to sue Coke Zero for copying the taste of Coke Classic

      http://www.youtube.com/watch?v=qEEMhnCeUsE

      I can't believe the UAW is doing it in real life. Simply amazing.
      • 4 Years Ago
      Such a bad move on the UAW part, it seems so greedy and underhanded. I support unions but this pushing it.
      • 4 Years Ago
      Yes that's it, bite the hand that feeds you. Run them into the ground with your striking, greed, bickering, and flat out laziness. 6 months later when the whole place closes it's doors they will scream even louder how they are the victims.

      I can't really say I'm shocked, this kind of thing has been going on for a while. The theme of the decade seems to be "something for nothing", not just with the UAW, but the general public as well (in relation to government)

      GM just posted a loss of what? 6 billion? I'd love to know what they were smoking to get the balls to come out and see if they can wring an extra 0.5 billion out of them for their idiocy.

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