AFSCME 3357-HOF'S BLOG

NYT: Almost 1/2 of Lemon Buyback Cars get Laundered Title

Today's New York Times contains an excellent article on lemon law buybacks. The NYT commissioned a study of 1000 cars bought back under Florida's lemon law. Of the 1000, 555 were shipped out of state. Of the 555, an amazing 80% lost the "lemon" designation from their title history.

Dayton, Ohio attorney, Ron Burge, a fellow National Association of Consumer Advocates member, and a Lemon Law expert, is quoted prominently in the article. Ron has a great blog linked here.


UAW CONTRACT RUMORS HEATING UP

A few folks have been sending me articles regarding the pending UAW contract talks with the Detroit Automakers. As you know, the fate of UAW-LSP rests in these talks. Delphi has already canned its legal services benefit. The automakers are claiming that they need a 1/3 reduction in labor costs to survive. At least at GM and Ford, health care is liable to take a partial hit as it is shuffled off into Voluntary Employees Benefit Agreements. (I have a post in draft form on VEBAs. I hope to finish it soon.) When the auto workers are facing serious wage and benefit cuts, why should they keep the legal services benefit. Two reasons. First, we're cheap, a fraction of the cost of health insurance. Second: If you took a 20% wage cut, and had to pay hundreds of dollars a month more for health insurance, would you want to lose your right to a free bankruptcy attorney? In short, the deeper the cuts, the more the UAW members will need us.

It looks like this will not be a contract cycle for pattern bargaining. GM, Ford and Chrysler may end up with very different contracts due to the specific needs of each company. Chrysler, after it's buyout by Cerberus, needs cash more than long-term debt relief; therefore Chryslerberus is unlikely to bargain for a VEBA. Source: Bloomberg, misc.