Viva la VEBA no longer?

GM's inflexible greediness is shooting them in the foot:

General Motors Corp. and the United Auto Workers are discussing alternatives to a proposed union-run retiree health-care fund after the two sides couldn't agree on how much money GM would provide, three people with knowledge of the talks said.

"It's a terrific setback,'' said Sean McAlinden, an analyst with the Center for Automotive Research in Ann Arbor, Michigan. "Without the trust fund on retiree health, the first thing GM is going to offer is a massive, rapid offshoring of GM production and jobs.''

GM has asked the UAW to consider requiring new union members to replace the current pension with a 401(k) retirement savings plan and accept a fixed amount of health-care funds each year once they retire, people familiar with the proposal said earlier this week. GM also is asking all workers to accept a freeze in cost-of-living allowances and other concessions, people familiar with the talks said.

In return, the automaker has offered incentives such as a cap on out-of-pocket health-care expenses for retired and active workers and give lump-sum bonuses to employees for ratifying the contract, the people said.

And Forbes says:

Now under discussion is a second offer from GM that doesn't include the trust but has larger cost cuts, including a drop in hourly wages, increased health care contributions, fewer guarantees of new work at U.S. factories, reduced vacation time and other items.

But, not so fast, from the same Forbes article:

GM spokesman Tom Wickham would not comment on the VEBA developments. UAW spokesman Roger Kerson declined to comment.

On Thursday morning, a local union leader who also had been briefed on the talks said the VEBA was discussed by UAW bargainers on Wednesday.

"The VEBA's on the table. They're looking at the numbers right now," said the official, who also requested anonymity because the talks are private.

So, what it comes down to is a fight over how big the lump sum will be, as well as how GM will help out if healthcare costs keep rising like crazy. I guess saving 25% on healthcare costs and totally shifting responsibility to the union, which will have significant operating costs to run the VEBA, isn't enough. And now they're showing their true colors, looking to offshore jobs and cut other benefits.

What happened to negotiating in good faith? And now, if the UAW does go on strike, don't think the media won't portray it as them being hot headed and bringing potential ruin to the country. Bank on it.