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Here's the second in Alexander Cockburn and Jeffrey St. Clair's series as they describe Hillary Clinton's years in Little Rock and her narrow escape from federal charges that would have destroyed her political career for ever. PLUS KEVIN ALEXANDER GRAY on how Hillary Clinton, Barack Obama and John Edwards are failing Black America even as they hunt for votes in So uth Carolina's "Black Primary." Get your copy today by subscribing online or calling 1-800-840-3683 Remember contributions to CounterPunch are tax-deductible. Click here to make a donation. If you find our site useful please: Subscribe Now
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Today's Stories August 31, 2007 Jeff
Gibbs August 30, 2007 Gary
Leupp John
Ross Anthony
DiMaggio Jordan
Flaherty Michael
Donnelly Russell
Mokhiber Dennis
Brutus William
S. Lind Martha
Rosenberg Jeff
Leys / Brian Terrell Website
of the Day
Patrick
Cockburn Winslow
T. Wheeler David
Rosen Dave
Zirin Paul
Craig Roberts Diane
Farsetta Ben
Davis Alan
Farago Jenna
Orkin Don
Monkerud Richard
Nasser Website
of the Day
August 28, 2007 Uri
Avnery Bill
Quigley Joshua
Frank China
Hand Firmin
DeBrabander Charles
Peña Andy
Worthington Ramzy
Baroud Anthony
Papa Ashley
Smith Website
of the Day
Jorge
Mariscal Bill
Christison Manuel
Garcia, Jr. Anthony
DiMaggio Bruce
A. Roth John
Walsh Dave
Lindorff Ron
Jacobs Binoy
Kampmark Russell
D. Hoffman Website
of the Day
August 25 / 26, 2007 Alexander
Cockburn James
Petras Jeffrey
Buchanan / Marjorie
Cohn Rev.
William E. Alberts Robert
Fantina Brian
Concannon Ralph
Nader Laura
Carlsen Fred
Gardner David
Michael Green Stephen
Soldz Mike
Ferner Paul
Krassner Ben
Tripp Missy
Beattie Website
of the Weekend
August 24, 2007 Paul
Craig Roberts Greg
Moses William Schroder Alan
Farago Jackie
Corr Jeff
Ballinger Bill
Quigley Dave
Zirin Richard
Rhames Ryan
Haygood Website
of the Day
August 23, 2007 Kathy
Kelly P.
Sainath Ron
Jacobs Christopher
Brauchli D.K.
Wilson Joshua
Frank Dan
Bacher Brenda
Norrell John
Wright David
Vest Website
of the Day
August 22, 2007 Norman
Finkelstein Marc
Levy Lawrence
R. Velvel Ray
McGovern Norman
Solomon John
Walsh Michael
Dickinson William
S. Lind Bill
Hatch Kenneth
E. Foster and John Joe Amador David
Vest Website
of the Day
Saul
Landau Alan
Farago John
Stauber Phillip
Rizk Debbie
Nathan Binoy
Kampmark Martha
Rosenberg Sunsara
Taylor Website
of the Day
August 20, 2007 Paul
Craig Roberts Uri
Avnery Rannie
Amiri John
Ross Harvey
Wasserman Robert
Billyard Dave
Lindorff James
Rothenberg David
"DC" Larson Website
of the Day August 18 / 19, 2007 Alexander
Cockburn Saul
Landau Ralph
Nader Patrick
Cockburn Robert
Fantina Robert
S. Eshelman P.
Sainath Dave
Lindorff Anthony
DiMaggio Fred
Gardner Ron
Jacobs Tom
Turnipseed Paul
Krassner Ben
Tripp Andrew
Wimmer Nancy
Oden N.D.
Jayaprakash Rick
Smith Missy
Beattie Poets'
Basement Website
of the Weekend
Joanne
Mariner Paul
Craig Roberts Shepherd
Bliss Dave
Lindorff John
Muthyala Patrick
Cockburn Sherwood
Ross Phil
Doe David
Michael Green Website
of the Day
Jonathan
Cook Christopher
Brauchli Norman
Solomon Lee
Sustar / George
Bisharat Binoy
Kampmark Evelyn
Pringle Hugo
Blanco Website
of the Day
August 15, 2007 Paul
Craig Roberts Michael
Neumann Jordan
Flaherty Sonja
Karkar Felice
Pace Joshua
Frank Dave
Lindorff Carla
Blank David
Vest Harvey
Wasserman Peter
Rost, M.D. Russell
Mokhiber Website
of the Day
August 14, 2007 Paul
de Rooij Winslow
T. Wheeler David
Rosen Gary
Leupp Clifton
Ross Muhammad
Idress Ahmad Jacquelyn
Godin Uri
Avnery Ramzy
Baroud James
McEnteer Website
of the Day
August 13, 2007 Jeremy
Scahill F.
William Engdahl Alexander
Cockburn Kathy
Kelly Chris
Floyd Paul
Craig Roberts William
Blum Kenneth
Couesbouc Rannie
Amiri Brenda
Norrell Fran
Shor Ron
Jacobs Website
of the Day
August 11 / 12, 2007 Alexander
Cockburn Stan
Goff Ralph
Nader Vijay
Prashad Greg
Moses Alan
Farago Patrick
Cockburn Ben
Tripp Robert
Fantina John
Ross Seth
Sandronsky Paul
Krassner Website
of the Weekend
August 10, 2007 Paul
Craig Roberts Stan
Goff Marjorie
Cohn Saul
Landau Chris
Floyd Daniel
Ellsberg Anthony
Papa Farzana
Versey Sgt.
Kevin Benderman Nuri
Nuri Website
of the Day
August 9, 2007 Stan
Goff Paul
Craig Roberts Alan
Farago William
S. Lind Doug
Giebel Harvey
Wasserman Jacob
Hill Raul
Zibechi Dave
Zirin Website
of the Day
August 8, 2007 Andy
Worthington Jeff
Halper Greg
Moses Nurit
Peled-Elhanan Sukant
Chandan Robert
Fisk George
H. Strauss D.K.
Wilson Bill
Day Tim
Campbell Website
of the Day
August 7, 2007 Patrick
Cockburn Andy
Worthington Kathy
Kelly Stan
Cox Sonja
Karkar Sen.
Russ Feingold Alan
Farago Norman
Solomon Binoy
Kampmark Dave
Lindorff John
Stauber Website
of the Day
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August 31, 2007 Win-Win for All? Think AgainAuto Makers Push Health Care Trust Solution for Industry in CrisisBy CHRIS KUTALIK A rising chorus of business gurus is singing the praises of a new solution to the U.S. auto industry's ongoing crisis: one big health care trust for all the Big 3's workers. According to the proposal's cheerleaders, by making giant one-time pay-ins the Big 3 auto makers can slice off an estimated $116 billion worth of retiree health obligations from their balance sheets in one swoop and restore profitability. What's more, union members will gain too because the money and future administration of retiree health care will be placed in the hands of a massive UAW-administered trust, called a Voluntary Employees Beneficiary Association (VEBA). A simple win-win for all, right? "Wrong," say a growing number of United Auto Workers members. UAW rank and filers, including members of the UAW rank-and-file group Soldiers of Solidarity, have launched a campaign to demand that all plans for such a solution be dropped in current contract negotiations. In one campaign leaflet these workers say that VEBA really stands for "Vandalize Employee Benefits Again" and that the plan will allow "the company to walk away from retiree health care commitments, and shift all the risk." But what exactly is a VEBA? On the surface, a VEBA is nothing more than a federally recognized non-profit 501(c) (9) corporation set up to insure that health care, pension, unemployment, or other benefits are routinely paid out to workers covered by the trust. According to the non-profit monitoring service Guidestar, there are at least 2,700 VEBAs already in existence for union and non-union employees in industries ranging from steel to utilities to telecommunications. Indeed, several of them already exist (mostly to dole out unemployment money) for Big-3 companies or major auto part suppliers like Visteon, Delphi, Dana, and Johnson Controls. VEBA RED FLAGS On closer examination, however, red flags pop up for union members in several critical areas. For one, many of the trusts start off under-funded. In fact, business analysts claim that this under-funding is one of the key advantages of a Big-3 VEBA solution. They point to the success of Goodyear Tires in dumping $1.3 billion of retiree health care obligations in favor of a $1 billion lump sum payment into a VEBA in the wake of the settlement of its grueling strike with the Steelworkers in late 2006. Business analyst Mark Oline told Financial Week that General Motors may be only willing or able to offer less than $35 billion of the estimated $50 billion that it owes retired workers. Ford was estimated to only be able to put $13 billion of $17 billion, while Chrysler, with mounting financial pressures from its recent buyout by Cerberus, remained unknown in what it is expected to offer. UAW members fear that under-funding could lead to a simple, grim arithmetic: each dollar shortchanged will presumably translate into a dollar that can't be spent on health care premiums, co-pays, deductibles, or quality of care. Under a VEBA, the remaining costs of maintaining health care benefits will have to be shifted back to the workers themselves. "VEBA shortchanges retirees on benefits they already earned because it is underfunded upfront," said Gregg Shotwell, a member of UAW Local 2151. "Exchanging dimes for dollars does not make sense. Whatever the company stands to save, retirees stand to lose. Eventually, it will put the union in charge of demanding retirees pay more out of pocket to make up for the short fall." Skyrocketing health care costs or an economic downturn may make an under-funded Big-3 VEBA into even more of a loser for workers. "God help us if we go into a depression or recession," former UAW President Douglas Fraser commented to The Washington Post, "and the value of the fund plummets and the UAW is sitting there with this huge liability." Moreover, that liability may be more than financial-it may also be political. By taking on the role of health care administrator, the union could be forced into a compromised position, having to potentially limit or cut benefits for the workers it represents. REAL DANGERS These pitfalls are not merely hypothetical. They have already occurred with disastrous results for workers inside the UAW. Following the signing of a concessionary two-tiered contract in January 2005, workers at Caterpillar found themselves with a bankrupt VEBA. According to the Caterpillar VEBA's 2005 tax filing, the fund paid out $1,350,131 while only having $1,345,186 left in contributions, leaving it owing $4,500. Retired Caterpillar workers expecting to draw from the fund suffered from the shortfall. They were left to deal with dramatic increases in co-pays, premiums, and deductibles despite previous agreements to protect them. "I knew I had paid for my lifetime health care coverage through the wage and benefit structure of all the previous contracts I worked under, but this agreement vetoed them all," retired Caterpillar worker and former UAW Local 751 President Larry Solomon wrote in Labor Notes at the time. "My wife and I will be paying $118/month premiums in 2005, and these will increase each year to a projected $332 by 2010." Fed-up with the inaction of UAW International leadership, members filed a federal class-action lawsuit against Caterpillar in May 2007. According to Shotwell, the case is still pending in the courts and in a final twist "now Caterpillar is suing the UAW because they should have prevented retirees from suing the company." A similar case occurred again at Detroit Diesel. Set up in 1993 to fund retiree benefits, the joint company-and-UAW-administered fund was exhausted by 2004. Saddled with sudden out-of-pocket health care costs, three Detroit Diesel members turned to the courts in desperation, filing a class action suit in January 2007 in defense of the 1,126 affected retirees and surviving family members. In certain cases, employers can even raid a VEBA's funds after it has been set up to fund capital expenditures. In 2000, General Motors shifted $1 billion from a VEBA that covered members of the UAW and other unions, according to William Hanline, a member of UAW Local 2195 in Decatur, Alabama. GM spent $500 million of the $1 billion on investments in Suzuki plants and another $500 million to boost the profits of its financing arm, GMAC. DROPPING VEBA With these dangers in mind, anti-VEBA UAW members are hoping that they can put up enough resistance to force VEBA plans to be dropped. They plan on distributing flyers and lobbying fellow members at Labor Day parades, union picnics, and other events throughout Michigan. They also plan on taking the fight beyond just a defensive one around stopping VEBA. Many members are advocating a more far-reaching solution to the auto industry's health care crisis: a national single-payer health care system for all workers. "The union is not a financial institution," said Shotwell. "The union's purpose is to advance social justice not manage the retreat from corporate accountability." [Tiffany Ten Eyck assisted with research for this article.] Chris Kutalik is an editor of Labor
Notes in Detroit. He can be reached at: chris@labornotes.org
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CounterPunch Books of the Crossroads: HOW THE IRISH INVENTED SLANG By Daniel Cassidy ![]() Click Here to Buy! Click Here for Dates & Venues How the Press Failed The Gang's All Here: Judy Miller, Bob Woodward, Rupert Murdoch, Bill O'Reilly...End Times Leaves No Reputation Unstained! ![]() Buy End Times Now! CounterPunch Books! Saul Landau's Bush and Botox World with a Foreword by Gore Vidal ![]() Click Here to Order! ![]() Michael Neumann's Devastating Rebuttal of Alan Dershowitz Grand Theft Pentagon: Tales of Greed and Profiteering in the War on Terror by Jeffrey St. Clair ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() The Occupation by Patrick Cockburn ![]() ![]() Humanitarian Imperialism By Jean Bricmont ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() CITY BEAUTIFUL By Tennessee Reed ![]() ![]() ![]() ![]() ![]() ![]() ![]() Bruce Springsteen On Tour By Dave Marsh ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |