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"Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others."

Ayn Rand

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PANDERING TO THE UNIONS

By
Neal Boortz
@ July 27, 2009 8:29 AM
Permalink | Comments (8) | TrackBacks (0)

In case you were worried about the United Auto Workers union lately, you needn't be. It looks like they will be taken care of just fine. As for other workers in the auto industry, they may not be so lucky. Take a look at the latest from the Wall Street Journal.

It's hard to keep up, but this week the federal Pension Benefit Guaranty Corporation took over the pension liabilities of Delphi, the auto-parts spinoff of GM that has been working its way through Chapter 11 since 2005. As with the previous taxpayer rescues, this one includes a special favor for the United Auto Workers.

Under the agreement, the PBGC will assume some $6.2 billion in pension liabilities from Delphi, including both hourly and salaried employees ... As Delphi's former parent, GM had agreed to take responsibility for billions of dollars of Delphi's pension obligations to its hourly employees.

It will be months before Delphi employees know what percentage of their expected pension they'll receive, but not all pensioners are created equal in this arrangement. UAW employees will have their pensions made whole by GM, which insists it is merely fulfilling its end of a deal made with the UAW in 1999 (when it spun off Delphi) to cover any future pension shortfall ... Less fortunate are smaller unions and Delphi's salaried employees, whose pensions may see drastic reductions and who already lost their health care and life insurance plans on April 1.

There are two groups that Obama and the Democrats are sure to protect as their big-government agenda progresses: Unions and trial lawyers. You didn't happen to see any medical malpractice reform in the government health plans, did you?



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What others are saying

  • curing herpes with Chap Stick
    *****************************
    EVERYBODY knows the UAW is the malignant tumor that killed GM.
    *****************************
  • Look for the union label
    Seriously, look for it. You can't find it anymore. Buyers have now figured out that anything sporting a union label is either overpriced or a piece of crap. Got to be one or the other.
  • re:Brian...
    are you lost? do you need directions home sweetie? Now go play with your blocks in the other room while the adults talk,pumpkin. thats'a good girl
  • Where
    Did this jerk Brian come from? Who put in an order for more trolls? At least get some that make sense.
  • UAW Local 218 gets change they can believe in
    Apparently it's not working out so well for these guys that work at Bell Helicopter in Fort Worth, TX. They went on strike for 6 weeks and came back to a worse deal than they had originally.

    http://www.star-telegram.com/business/story/1501638.html
  • 2 groups republicans are sure to protect
    the klan and the bin ladens(how many did Bush fly out on the day of the terrorist attacks?)
  • In bankruptcy court, contracts aren't worth the paper they're printed on
    As a "survivor" of a corporate bankruptcy, I'm aware that the bankruptcy court can void any contract. Ask the (non-UAW) secured bondholders of GM - who got butt-forked because the great, almighty, omniscient, omnipotent Obama decided to paint them as "evil speculators" - you know, the various pension funds (some of them on behalf of unions other than the UAW).

    "This one is sacred because it's a UAW, that one can go pound sand"

    CHUMP Change you can believe in!
  • What?
    "UAW employees will have their pensions made whole by GM, which insists it is merely fulfilling its end of a deal made with the UAW in 1999 "

    Honoring a contract? What a concept!
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