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Local retirees watch GM-IUE health care talks

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By Thomas Gnau, Staff Writer 8:33 AM Friday, June 12, 2009

The International Union of Electronic Workers-Communication Workers of America — which represented workers at the Moraine General Motors Corp. plant which closed late last year — says it’s concerned that hourly GM retirees will be “holding an empty bag” as the automaker goes through bankruptcy.

GM and the IUE-CWA agreed in December 2008 on a VEBA — a Voluntary Employees Beneficiary Association — which shifts responsibility for managing future hourly retiree health insurance benefits to the union, with the help of a substantial GM investment.

GM’s Moraine SUV assembly plant, which closed in December 2008, was its only plant represented by the IUE-CWA.

But since last year, the automaker has “refused to implement VEBA citing requirements imposed by the U.S. Treasury Department,” the union said in a statement on its Web site.

The concern is that GM’s VEBA obligation to the IUE-CWA will be left with unsecured creditor claims against what some have called a “bad GM” — the weak company left after GM’s profitable assets are sold to a new, viable company.

The IUE-CWA’s statement said the union has prepared a filing. But Jim Clark, IUE-CWA president, said Wednesday, June 11, that the union is trying to work with GM as it progresses through the Chapter 11 bankruptcy process.

“We’ve reached out to the Treasury (Department), and we’re having a dialogue with GM,” Clark said.

Clark was unsure how the matter would be resolved.

“This is an ever-moving situation,” he said.

Susan Garavaglia, a GM spokeswoman, said she couldn’t discuss current talks with the IUE.

However, she added: “GM previously had a conditional agreement on the VEBA with the IUE. Since our (bankruptcy) court filing, we can no longer go forward with that agreement under guidelines established by the U.S. Treasury. We are, however, currently in negotiations with the IUE to come to a resolution on retiree health-care issues.”

Trotwood resident Larry Pullem, 57, a 34-year GM-Moraine retiree, says he’s watching the situation and he’s concerned.

“Yeah, I think every retiree is,” he said.

Tracy Merritt, a former GM-Moraine worker who took a GM buy-out last year, is wary as well, even though he won’t be eligible for health insurance when he retires.

“I’d like to know if I’m going to have a retirement (pension) when the comes times,” said Merritt, now working as an electrician in Washington, D.C. “I have 18 years invested in GM.”

Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.

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