Which, even by modern (read: “Democratic party”) standards, is a fairly big number:

$10B aimed at union retirees

WASHINGTON — Antilabor forces say it’s welfare for the UAW and Democrats’ union allies. Labor supporters say it falls short of what’s needed as tens of thousands of union members are pushed into early retirement as employers cut back health care coverage.

They’re both talking about a $10-billion provision tucked deep inside thousands of pages of health care overhaul bills that could help the UAW’s retiree health-care plan and other union-backed plans.

It would see the government — at least temporarily — pay 80 cents on the dollar to corporate and union insurance plans for claims between $15,000 and $90,000 for retirees age 55 to 64.

These would be the (generous) health care plans that the UAW essentially extorted out of the auto industry. Also note that this is in addition to the percentage of the auto industries already traded to labor unions in exchange for assumption of obligations stemming from those health care plans. And now the expectation is that the unions will be able to pass along the costs of early retirees to the government - which is to say, you.  Put another way: fully one percent of the health care rationing bill’s minimum final cost will go towards rewarding the UAW’s original health-care looting.

As Ed Morrissey notes: at least now you know why the unions have sent out their bully-boys.

Moe Lane

Crossposted to Moe Lane.

Since our update yesterday, it has come to light that the dealerships that dodged (sorry, couldn’t resist) Chrysler’s silver bullet have circled their wagons minivans and are doing their fair share of PR work for the government-controlled reorganization of what was once the country’s third largest automaker.

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Government Motors^(TM), the new automaker which will replace General Motors, has already experienced regime change at the direction of new CEO-in-chief Barack Obama. In light of some recent product mix realignment at GM, one has to wonder if POTUS is not calling the shots on GM’s model line-up as well.

Changes at Cadillac, Chevrolet and Pontiac, the GM divisions which were making interesting cars, don’t bode well for people who actually enjoy driving. Those who hate personal transportation and will only settle for boring automobiles as appliances only slightly more interesting than the standard kitchen toaster oven, however, will be pleased.

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Former RSer Pat Cleary has been checking up on the United Auto Workers and has some thoughts on the need for shared sacrifice. He also observes that the UAW no longer seems so proud of the great deal it got for its members in 2007; in fact, they’ve sent their press release down the memory hole:

So 6 months ago we moseyed on over to The Google and typed in “UAW.” On their site was a link to summaries of their most recent contracts - a link that’s mysteriously gone now. Luckily, we saved it. So here it is, a link to what they said when they inked the most recent agreement with GM back in 2007. Mind you, this was as the company was by everyone’s reckoning speeding headlong into a trough. The UAW release says in part:

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GM’s auditors are talking about bankruptcy for the automaker:

General Motors Corp.’s auditors have raised “substantial doubt” about the troubled automaker’s ability to continue operations, and the company said it may have to seek bankruptcy protection if it can’t execute a huge restructuring plan.

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When the Auto Bailout was approved by Congress one of the stipulations was that the automakers had to get concessions from the unions.

So, in an attempt to abide by Congress’ demands, GM has been in negotiations with the United Auto Workers to make the requisite deals. Unfortunately, it doesn’t seem as if the UAW is in the mood for making any deals, at least if it involves any cuts for them. Consequently the UAW has decided to walk out on further negotiations.

Sadly, instead of trying to arrive at a fair package with General Motors, the UAW would rather stubbornly fight them at a time when everyone is being asked to trim expectations in this faltering economy.

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