In chess, a gambit is the sacrifice of a pawn or piece to gain the initiative and attack. Delphi was until recently a part of GM, and the spinning off of Delphi in 1999 followed by it first going into bankruptcy can be seen as a gambit by GM to test Labor. As they say, Labor blinked, and has now offered a deal to cute wages and benefits, primarily by changing from a defined benefits program to a defined contribution. In a sense, this is karma, as Labor stiffed GM back in 1999 by a lengthy strike at Delphi, and GM blinked. Market reaction to GM's moves today is mixed. GM will still have to sell a controlling part of its cash cow, GMAC, in order to lower GMAC's costs of borrowing. This unwinding of the social compact will continue. The news today should inspire other old-line companies to begin their chess moves, while Labor is compliant.