[mosdef]

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Mosdef, Midge is right about the terms of the contract. GM entered into successive collective bargaining contracts over the years promising UAW workers health care after they retired in exchange for their labor today. GM puts money aside to ensure that this benefit will be funded. So basically, GM is paying today for their current employees future medical problems, as they agreed to.

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Actually, I think what you just said is the same as what I was saying, not what Midge was saying. When you look at the deferred benefits that are due to employees and former employees now for service that was rendered years ago, whether or not those deferred benefits are being paid is only relevant to the current contract to the extent that current actives think it says something about the value of deferred benefits. What the current active employees negotiate now for service in the upcoming bargaining period should not (theoretically) include demands that previously deferred benefits be paid. I think this is a terrible position for the union to assume. What they are saying is: If you carry through on your promise to pay us what you owe us for work already done, we'll do more work. The employer should JUMP at this and continue to offer as many deferred benefits as the employees will take because they will always be able to get more work in exchange for just paying the employees for what they've already done! The employees MUST not allow this to happen by accepting deferred compensation if they are not prepared to bear the risk that the compensation will not be paid in the future as promised.