UAW pushes through Chrysler betrayal in face of strong rank-and-file opposition

The contract is a betrayal of auto workers of historic proportions. It opens the way for Cerberus to accelerate plans to carve up the company by shutting down and selling off dozens of factories. It cuts the wages of future workers from $28 to $14 an hour, and includes other sweeping concessions, including a four-year pay freeze and give-backs on health benefits for current workers. Abandoning bedrock gains won decades ago, it relieves the auto bosses of their obligation to pay for retiree medical benefits.

In exchange for sacrificing the jobs and living standards of its members, the UAW gains control of a multibillion-dollar retiree health care trust fund, known as a voluntary employees’ beneficiary association, or VEBA. With the trust, the UAW becomes the proprietor of one of the largest private investment funds in the US. The corporate entity known as the UAW will in future directly slash the benefits of UAW retirees and their families.