Ruling Frees General Motors Of $450M Obligation To UAW

by Cameron Aubernon

Published: May 15th, 2015

ruling frees general motors of 450m obligation to uaw

The 6th U.S. Circuit Court of Appeals ruled Thursday General Motors will not owe $450 million to the UAW for funding health care among Delphi retirees.

The ruling affects a stipulation in the contract signed by “Old GM,” Delphi and the union in 2007, where the automaker would make a one-time contribution of $450 million, Detroit Free Press reports. Said stipulation remained in a revised 2008 agreement, but would not be included in a new contract when GM emerged from bankruptcy in 2009.

However, the UAW sought to hold GM to its obligation, suing the company in April of 2010 after the “new” version of the company refused to pay the contribution.

While a spokesman for the automaker said it was “pleased with the outcome of the case,” the union remains silent as to whether it will appeal the ruling before the U.S. Supreme Court.

[Photo credit: Delphi/ Facebook]

#6thU.S.CircuitCourtOfAppeals #Delphi #FinancialObligations #GeneralMotors #Rulings #Uaw #UnitedAutoWorkers

Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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Dr. Claw on May 16, 2015

I clicked on this article, scrolled down and braced myself for what I usually see when "GM" and "UAW" are in the headline. I was pleasantly surprised. Yet another reason why TTAC >>>>>>>>>>>>>

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- See 4 previous
- Pch101 on May 16, 2015
  
  As noted, most of the usual suspects are avoiding this post because they are happy with the outcome. If the UAW is on the losing side, then everything's great.
  
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- Xeranar on May 17, 2015
  
  Most of the usual suspects as Pch pointed out are pleased by the outcome. You can still see some of them like LC spouting his lunatic views but the usual crowd is pleased a multi-billion dollar corporation crushed the 30K workers who got them there. It's odd how much pride they take in supporting the billionaires and yet aren't part of them...
  
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- Landcrusher on May 17, 2015
  
  @Xeranar That's just a dispensable pile of crap, Xeranar. No one is happy those workers are getting screwed. You just need to redirect attention from the facts that your big government and unions once again failed to keep their promises and chose to protect the big company so they can continue to suck it dry like the parasites they are. Don't know what the take of any billionaires is here, but the unions and government have been skimming a big percentage off the top of those workers' incomes for decades precisely saying they would prevent this sort of thing.
  
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- Xeranar on May 18, 2015
  
  @Landcrusher You can't even build a coherent argument. This is why I don't reply to you anymore. You're a lunatic fringe who won't actually cite a single argument but keep shouting 'big gubmint!' as if it actually means something. We pay less in taxes than every other western state and have a lower standard of living across the board. The proof is in the pudding, if we cut away the 'red states' who get more federal dollars than they put in and just looked at the 'blue states' we would see that 'big gubmint' isn't the problem so much as lax labor laws and a refusal to enforce working standards that increase incomes. Flat out: Wage floors increase income. Unions increase income. If you ever read an economics book that wasn't written for business majors (i.e. the kind that lie for the sake of capitalism) you would know these things. I just refuse to get my blood pressure up because I know at the end of the day you've already lost. Hillary 2016....two more supreme court justices that favor pro-union outcomes. Oh to watch TTAC burn with hatred as each time the UAW gets to the SCOTUS and wins will be truly a reward.
  
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- Landcrusher on May 18, 2015
  
  @Xeranar What is it you don't understand? The union members paid two parties through dues and taxes to ensure they would get what they bargained for. The union and the government both failed them. They are worse off than if they had simply been skeptical and taken responsibility to get a simple agreement for cash for the labor and lower taxes/less government. I can make it simpler for you if necessary. What do you mean by cite an argument? I make arguments, and whenever I have ever bothered to cite anything it's ignored by you guys or otherwise attacked as bitterly as you attack me. I've never seen a study that came close to proving your statement about wage floors. They mostly have the same flaw. At any rate, what does it matter to the guy who is unemployed because of the floor? It really doesn't. What gives anyone the right to push him out of the market? The whole secession thing is a legal swamp, but I would bet on most of the red states coming out ahead if there is a split. The better solution to giver/beggar states is simple - less federal government. For the umpteenth time, your unsupported declarations about my education, abilities, etc. are both rude and wrong. I did just fine in both undergrad and graduate economics classes. I also hope I'm right and your wrong, but I'm hoping you are better off for my being right. Secretary Clinton would be an improvement over the current office holder, but I think we can do better.
  
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Edgett on May 16, 2015

It's worth remembering that the autoworkers were first offered healthcare by GM management in 1950. Walter Reuther, then leading the UAW prophesized that it would eventually bankrupt the companies. GM, along with other manufacturers, was fighting the idea of a national health plan and averted it via promises to pay money which wasn't accounted for until retirement. Pretty piss-poor management decision.

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Dave M. on May 16, 2015

I can't stand the UAW, but I disagree with this ruling, especially after UAW compromised in the attempt to keep the old GM going. I doubt they'll warm up to compromising any time soon in the future, however failing to do so may cost them jobs. I've always had a moral dilimna with corporate bankruptcy. The top dogs rarely if ever are affected like the rest of the company, and often they can just go set up another corporation. How many times has Donald Trump screwed over his debtors?

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- Big Al from Oz on May 16, 2015
  
  @Dave M. The UAW should not be placed in a position where it is necessary for them to compromise. They don't run the business. Why should the union be involved in the management of a business? The union always negates to accept any responsibility for any adverse occurrences within any business. If they made themselves more accountable for their actions, I would support your view.
  
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- Landcrusher on May 16, 2015
  
  @Big Al from Oz This is part of the fundamental issue with unions. First, when you say "the union" are you referring to the membership or the leadership? It makes a big difference. It was leadership's job to avoid this sort of thing. They play hardball opposition at all times and use it at as a selling point. They failed the workers. Then, you have the function of the Union to act as a fifth column in the company which absolutely gets overly involved in management. The amount of decisions in which these unions have a say is legion. That's why I always point out that the UAW gets the management they deserve. The decision makers at GM today were drawn from the pool of management talent available after much of the most innovative and forward thinking members of the pool had already decided a career at GM was not for them because of - the UAW.
  
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- Big Al from Oz on May 17, 2015
  
  @Landcrusher I do think the best way is for the workers to be paid a retainer. Make it a livable income of say $15ph. Then paid a share of the profits to top up their income. A workers share in percentage is based on the responsibility they assume. So, the guy who just wants to clean toilet will get his fair share in comparison to a team leader. If their is an economic downturn or the company does poorly then all are to blame equally.
  
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Manu06 on May 16, 2015

Total nonsense. The UAW compromised on several issues with GM. GM on the other hand never had any intentions of meeting their end of the bargin. Remind me again of how much money Rick Wagoner walked away with ? 10 million and 74k per year for life plus other bennies. Bet he is still getting paid.

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