Oct 8, 2007
The UAW tells its members that their “cost-of-living protections formula is maintained.” The formula may be maintained, but a lot of the money never hits the paycheck.
Ten cents per hour in the first pay quarter, twenty cents per hour in the second, thirty cents per hour in the third, and so on through 15 pay quarters of the contract, are deducted to go to the health-care funds.
By the end of the contract, workers will be losing $1.50 per hour in COLA, giving it back to GM to help cover GM’s previous obligations. In the final year of the contract, workers will give back more than $3000; in the whole contract, more than $6000 total.