UAW-GM deal cuts COLA pay

[Slowrider5]

Contract could cost $6,240 per worker, an analysis shows

October 3, 2007

BY SARAH A. WEBSTER

FREE PRESS BUSINESS WRITER

In 1970, the UAW struck General Motors Corp. for 67 days. It was a bitter, costly protest. The reason: The union wanted a cost-of-living adjustment that would protect its wages from being devoured by soaring inflation.

But in a little-observed detail of the tentative contract between the UAW and General Motors Corp. -- which workers are in the process of voting on nationwide -- workers will be diverting a substantial amount of their so-called COLA to pay for the rising cost of health care, for both active workers and retirees.

Over four years, the amount of the diversions will be substantial: about $6,240 per worker.

More at link:
http://www.freep.com/apps/pbcs.dll/a...710030419/1014

[steverino]

So, GM still offered COLA and the UAW negotiating team agreed to the changes, so what's the big deal.