Honoring Our Predecessors and Planning the Path Ahead
We are all following a path that was laid before us. Those who came before widened the path, softened the route and made the way. We in the UAW can never forget the things our predecessors have accomplished.
In 1948, the UAW established Cost of Living Adjustments. In 1950, the UAW negotiated a record contract with GM that won both pensions and employer-provided health care. The contract known as “The Treaty with Detroit”, played a pivotal role in creating the middle class in the United States.
Our retirees have paved the way for us. Their sacrifices made possible the things we enjoy today. We should never forget the path they have trod for us and continue to preserve the way for those who will follow.
When pensions were established in 1950, they were tied to Social Security through the supplement which covered for Social Security until our members reached the age to draw their Social Security. The cost of living has escalated over the past several years, making it harder for retirees to make ends meet. The UAW has continued to push for increases to pensions and will continue to do so.
In 2007, the UAW negotiated the Voluntary Employee Beneficiary Association (VEBA) plan, which went into effect on January 1, 2010. The VEBA assumed control of retiree health care, using funds negotiated by the UAW from General Motors, Ford and Chrysler. The retirees at each company have their own VEBA that handles retiree health care. In recent years, the investments in the VEBA have allowed lower drug costs, eliminated monthly contributions, addition of the Over The Counter (OTC) benefit, the Health Reimbursements Arrangement (WEX) and improved dental, vision and hearing coverage. For me, it is a great honor to sit on the VEBA Board and to observe the process of protecting health care for our retirees.
In 1970, the Supreme Court heard a case between the Allied Chemical & Alkali Workers v. Pittsburgh Plate Glass Company concerning bargaining for retirees. The Supreme Court ruled that retirees are not employees and therefore may be included in bargaining agreements. As a result, bargaining for retirees is considered a “permissive” subject of bargaining rather than a “mandatory” subject. In a nutshell, this means that companies can voluntarily agree to discuss issues concerning retirees but are not required to. This doesn’t mean that we can’t bargain for retirees, it just means it is harder because we can't strike over matters concerning retirees.
Moving forward, we have to both protect our predecessors and plan for posterity for those reaching retirement age. We can never forget where we have been nor where we are going. Retirement security for all members must be a priority as we continue the path forward.
In Solidarity,
Mike
