IMPROVED PROGNOSIS: GM-UAW agreement begins new era for organized labor

[Omaha Steve]

http://www.freep.com/apps/pbcs.dll/article?AID=/20070930/BUSINESS07/709300711/0/BUSINESS07&theme=AUTOTALKS072007

September 30, 2007

BY JOHN GALLAGHER JENNIFER DIXON, M.L. ELRICK and JOHN WISELY

FREE PRESS STAFF WRITERS

Across America, union leaders and corporate executives looked at Detroit this past week and glimpsed their own possible future.

Labor unions, derided as dying organizations, saw in the UAW's pending takeover of General Motors Corp.'s retiree health care burden a new mission and perhaps a new recruiting tool.

"It shows the labor movement is willing to stand up for the members, stand up for the retirees and take some risks," said Glenn Feldman, director of the Center for Labor Education and Research at the University of Alabama at Birmingham. "That's going to go a long way for the labor movement."

Corporate leaders, struggling with health care costs, saw an intriguing possibility in GM's off-loading of $50 billion in eventual costs for UAW retirees.

GM and the UAW agreed to a deal that will slash at least $20 billion from GM's obligations and put the UAW in charge of maintaining its retirees' health care coverage. GM will contribute up to $29.9 billion to create a trust fund known as a VEBA, for voluntary employee beneficiary association, to be overseen by the UAW.

"I'm sure a lot of the airlines are thinking, 'Why didn't we do this?' " said Gary Chaison, a professor of management at Clark University in Worcester, Mass.

FULL story at link.

[90-percent]

1. As a boomer

As a boomer born in 1954, I took middle class prosperity for granted, like it's always been there. Little did I know the Labor movement that began in the late 19th century and continued until after WW2 was THE REAL REASON FOR SUCH PROSPERITY. Of course it's not the sole reason, our economic competitors had their manufacturing infrastructure leveled in the War.

But, Labor Unions can be great, and with corporatism running virtually unchecked in the USA right now, I see this settlement as a wonderful thing for the future of Unions, and therefore the future prosperity of the American Middle Class.

-85% Jimmy