UAW VEBA, Obama, Executive Orders, Financials...follow the money

[WhiskeyGirl]

One of the immediate 'benefits' of healthcare reform was supposed to be the 'reinsurance' section which funded a limited number of things like the UAW VEBA (healthcare).

The principal responsibility for the trustees will be to preserve the available capital devoted to paying the doctor and hospital bills for thousands of retired auto workers.

...

For the UAW, the level of retiree benefits paid out by the trusts is likely to become a very sensitive issue in the months to come.

The only recourse for the GM trust could wind up to be cutting the benefits of retirees to fit the income that can be realistically generated by its assets. The trustees also could elect to use part of the principal in the trust to pay the bills but that would certainly be risky.

The situation is even worse at the Chrysler trust, which from the start in the fall of 2007 was never as well funded as the Ford or GM health care trusts.

Thus, it’s not surprising there are already concerns among Chrysler retirees that the benefits promised by the trust could begin to run out relatively quickly.

In addition, the problems have been exacerbated by the waves of early retirees, most of them a lot younger than 65. The early retirements have increased the demand for benefits, putting more strain on the trust assets.

As more jobs move overseas to China and Italy, how many more will be 'retiring' before age 65?  If these were non UAW employees, at jobs on Main Street, they would be expected to buy their own insurance, take COBRA, or go without.

http://www.theoaklandpress.com/articles/2010/01/10/business/doc4b478d25332ac805879057.txt

Is this why there is such a rush to pass Healthcare Reform?  The 'reinsurance' provision?

What about average people on Main Street who lose their jobs?  Will they get to keep their Cadillac plan, funded forever by taxpayers?

BTW - Where are taxpayers going to get the money to continue funding those Cadillac plans?  Borrow more from China?

Was Obama's Executive Order eliminating the requirement for unions to file financial reports a cover created for the VEBA?

Why shouldn't the unions file financial reports?  If taxpayers are bailing them out through continued payments to GM & Chrysler, 'healthcare reform reinsurance' shouldn't we know where the money is going?

Follow the money?  Unless the money goes to the UAW, VEBA, ACORN, or other Obama special interests?

[WhiskeyGirl]

GM To Pay UAW VEBA Director $900k For Advice

Truth About Cars - Edward Niedermeyer - ‎Jan 15, 2010‎

A lot of what you hear about Steve Girsky sounds decidedly positive: an outspoken critic of GM, Girsky lasted less than a year as Rick Wagoner’s “roving aide-de-camp,” reportedly due to frustration with management heel-dragging. He even earned TTAC’s “lesser-of-two-evils” endorsement to be Presidential Car Czar over Steve “Chooch” Rattner. When he was appointed to be the UAW rep on GM’s board, representing the union’s VEBA trust which owns 17.5 percent of GM’s stock, he was lauded as someone who could keep his union allegiances at bay. But as special advisor to GM CEO/Chairman Ed Whitacre , Girsky had better be prioritizing GM’s best interests. Reuters reports that he’s being paid a cool $900k in stock grants for his advice. That’s in addition to $200k director’s salary and reimbursement for “living expenses and travel to and from Detroit.” Not bad considering the fuss people are making over compensation at TARP-recipient financial institutions.

http://www.thetruthaboutcars.com/gm-to-pay-uaw-veba-director-900k-for-advice/

$900 million is A LOT of money to pay for a healthcare manager.

[WhiskeyGirl]

Gettelfinger insists that the union already swallowed a massive concession when it negotiated the VEBAs in 2005 and 2007, the source said. Together, those earlier agreements cut GM’s UAW health care obligation from $50 billion to $26 billion.

Now the union is being asked to take risky GM equity for half the remaining $26 billion obligation. That’s an untenable sacrifice when other stakeholders haven’t even anted up yet, the source said.

“That’s what Ron means when he says the UAW has gone to first base, second and third to help GM when the others haven’t even entered the stadium,” the source said. UAW spokeswoman Christine Moroski declined to comment for this story.

What’s more, the UAW last month agreed to end the Jobs Bank at the Detroit Three. Under the Jobs Bank, long-term idled workers collected about 95 percent of wages and benefits while not working. The Jobs Bank could have cost GM alone up to $2.1 billion over the four-year life of its UAW contract signed in 2007, the contract shows.

If the union benefits were unsustainable in 2007, why didn't they start restructuring?  Scaling back?

http://www.workforce.com/section/00/article/26/17/39.php

At all three companies, contributions to the VEBA are now partly in cash and partly in stock, which means that available funds to pay retiree health care benefits will be impacted by the financial performance of each firm. Benefit levels will also be affected by the rate of health care inflation, and the progress achieved in reforming the overall U.S. health care system, which remains out of step with the universal, cost-effective systems that are in place in other industrialized countries.

Why isn't the VEBA jumping on the reformed healthcare plans?  Health care reform is good enough for the rest of us, but not for the VEBA?

http://www.uaw.org/solidarity/09/0809/feature05.php


“I’m convinced that current retirees won’t lose a penny,” she said. “If there are tradeoffs, we’ll trade the future generations for the current generation.”

more here - http://www.workforce.com/section/00/article/25/94/05.php


Is this what Obama is doing?  Trading away the prosperity of future generations?  Blowing trillions on pork, earmarks, and payments to foreign countries? 



It's almost like the US is territory of some large Imperial Empire, that is draining the resources, hope, and prosperity for generations.  Is the goal to make us the next Haiti?  A post-colonial land, with massive debt, dictators, and no hope for the masses? 

The current imperial government is binding the nation to perpetual debt slavery?  A burden that is inescapable?

The Imperial Governors already in place in Washington?  AIG, one among many for funnelling money to the Imperial Masters?

Why doesn't Washington work FOR Americans?  Why isn't Washington building a better day for AMERICANS?  Why does the unemployment rate keep going up, money keep going to stimulate FOREIGN countries and businesses?

Where are the leader that work for US?  The Americans?

[WhiskeyGirl]

My initial assessment of the Proposed GM/UAW VEBA concentrated on the implications of the proposed sale of the Convertible Note to the VEBA. I have now had the opportunity to assess more fully the Memorandum of Understanding covering the VEBA that the UAW has made available to its members in advance of the contract ratification vote. This MOU makes clear that the entire VEBA structure fails to secure future health care obligations from the potential risk of GM bankruptcy. To put it succinctly, the VEBA structure can be said to balance like a house of cards completely subject to the ups and downs of GM’s financial future. If GM collapses into bankruptcy it is very likely that the VEBA will also collapse.

http://www.soldiersofsolidarity.com/files/relatednewsandreports07-2/GM-UAWVEBADealDescribedAsHouseofCards.html


Cadillac benefits explained -

Cost Sharing – minor increases to:
o Monthly contributions
o General – Single $15/ Family $30
o Protected – Single $15/ Family $15
o Deductibles – Single $170/ Family $340
o Out-of-pocket maximums
o In-Network – Single $285/ Family $570
o Out-of-Network – Single $570/ $1,140

http://www.soldiersofsolidarity.com/files/retirees/GM_Communication_Book_Final_v3_1_.pdf

How many out of work 'retired' Americans have insurance with these kinds of benefits?



"Can the UAW and GM really strike any kind of legitimate deal at all? This UAW-GM VEBA Fund analysis exposes grave concerns about its viability. Here's what has surfaced once an expert has had a review of the documentation."

more here - http://www.gmworkersblog.com/languages/english/re_uaw_gm_veba_fund_and_stephen_diamond

I wonder what kind of financial reports the UAW VEBA is required to make?  IRS filings?  Other Federal organizations?

What is the financial state of the UAW VEBA?

How viable is the UAW VEBA if Obamacare doesn't pass?

[WhiskeyGirl]

How healthy will the UAW VEBA be if Chrysler and GM continue to perform poorly?  Will that stock ever be worth anything?

[WhiskeyGirl]

How many "universal, cost-effective systems that are in place in other industrialized countries" have Cadillac plans like the UAW VEBA members?

Why should taxpayers fund a Cadillac plan for some, like the UAW VEBA, Congress, the president, and a Yugo plan for the rest of us?

Why should the Federal government be involved in the healthcare business?