UAW, General Motors Reach Tentative Deal
The two-day strike is over. The United Auto Workers reached a tentative agreement with General Motors on a four-year contract early this morning.
The two sides released few details of the new contract, but the Chicago Tribune reports that it will shift "a $51 billion liability for retiree health care to a union-run trust fund." The union will take over managing the liability in a voluntary employee beneficiary association. It means the union will assume the risk of future increases in health care costs.
Union leaders said this morning that the contract includes assurances from GM that UAW workers' jobs will be protected and lump-sum bonuses instead of annual wage increases.
The next step is for local UAW presidents review the contract, and then it will be put to the union's 74,000 members at GM for a vote. The contract also needs court and regulatory approval, which means it may take a while to implement.
The agreement is expected to set a pattern for contract talks at Ford and Chrysler.
9:15 AM ET | 09-26-2007 | permalink
