Union Corruption Watchdog Criticizes GM/UAW Deal on Health Care; Says Congress Should Hold Hearings on 'Lousy Deal' for Retirees

FALLS CHURCH, Va., Sept. 27, 2007; The National Legal and Policy Center (NLPC) today objected to the tentative contract agreement between General Motors (GM) and the United Auto Workers (UAW) to transfer more than $50 billion health care in liabilities to a fund controlled by the union.

Dr. Carl Horowitz, director of the Organized Labor Accountability Project and editor of Union Corruption Update, reacted by saying, "This is a great deal for GM. They get to shed billions in obligations made to former workers. It is a great deal for the UAW. Gettelfinger and his cronies get to control billions in health care dollars. It is a lousy deal for retirees and future retirees who may lose some or all of their benefits."

Horowitz continued, "Union-controlled health and benefit plans lack transparency. That is why they so often get looted by corrupt union officials. The UAW is not clean. As we have documented, many unions have been plagued by a number of benefit scandals in recent years."

"Union-controlled health and benefit plans often shortchange union members and retirees. Instead of getting the best deal for participants, these plans are often characterized by cozy, inside deals beneficial to the union bosses, and on occasion, organized crime. With the staggering size of this proposed health fund, the UAW bosses must be salivating."

Horowitz concluded, "Congress should hold hearings on what this deal means to the tens of thousands of GM retirees and future retirees. Neither GM nor the UAW can be counted on to act in the best interests of workers. Putting the union in charge of this health fund creates a potentially huge conflict of interest for UAW leaders."

http://www.nlpc.org/