UAW sues Government Motors

Ordinarily, seeing a headline that states “UAW sues General Motors” would require a real quick scan, get the gist of the story, post it (or not), then move on.

In this case, however, the moving on part came to an abrupt, screeching halt…

Hey! Wait a minute!
Long pause, closer look:

Today, the UAW filed a lawsuit against General Motors, claiming the automaker owes the union $450 million as part of a three-year-old contract with its former part division, Delphi. 

In the lawsuit, filed in federal district court in Detroit, the UAW contends that GM was obligated through a labor contract and the bankruptcies of both GM and Delphi to pay $450 million intended for the UAW’s Voluntary Employee Beneficiary Association for Delphi workers. That trust, called a VEBA, is to provide for retiree health care.
Then, the questions started rolling around.

How can Government General Motors be sued by the United Against Work United Auto Workers if the UAW owns 17% of GM?

Further, if the UAW wins its suit, does the amount awarded get reduced by 17%?

And, more importantly, if the U.S. government owns the majority of GM, isn’t the UAW really suing the U.S. government?

And, by suing the U.S. government, isn’t the UAW actually screwing suing us?
“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.” Thomas Paine, December 23, 1776

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Filed under Government Motors, UAW, United Auto Workers

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