GM-UAW reach deal to end strike
Marathon bargaining session strikes agreement to end two-day strike at No. 1 U.S. automaker; union to assume more than $50 billion in retiree health care costs.
Terms of the agreement were not immediately available, but the statement from the company said the deal includes the establishment of a union-controlled trust fund that will assume responsibility for future retiree health care costs from GM, the nation's No. 1 automaker.
Getting agreement for that shift of costs, estimated at more than $50 billion, was the key bargaining goal of the talks for GM.
I had heard the Union taking over the Retirement fund (GM pays 70%) will allow the auto maker to lower car prices by $1200... So if UPS takes over the pension plan will they have to raise shipping costs? Or will they have to lower new hire wages?
Breaking down the GM Strike: who got what...
UAW got:
Marathon bargaining session strikes agreement to end two-day strike at No. 1 U.S. automaker; union to assume more than $50 billion in retiree health care costs.
Terms of the agreement were not immediately available, but the statement from the company said the deal includes the establishment of a union-controlled trust fund that will assume responsibility for future retiree health care costs from GM, the nation's No. 1 automaker.
Getting agreement for that shift of costs, estimated at more than $50 billion, was the key bargaining goal of the talks for GM.
I had heard the Union taking over the Retirement fund (GM pays 70%) will allow the auto maker to lower car prices by $1200... So if UPS takes over the pension plan will they have to raise shipping costs? Or will they have to lower new hire wages?
Breaking down the GM Strike: who got what...
UAW got:
- <LI _extended="true">An independent retiree health care trust that will be funded with enough money from GM to remain solvent for 80 years <LI _extended="true">Undisclosed job guarantees that we expect includes a promise of investment in particular U.S. plants in preparation for production of new models <LI _extended="true">GM will hire up to 5,000 temporary workers as full-time employees <LI _extended="true">Signing bonuses of an undisclosed amount for all UAW members who sign the contract
- Wage increases of 3% in first year, 4% in second and 3% in third
- <LI _extended="true">$50 billion in health care liability off its back after a large one-time payout into independent retiree health care trust <LI _extended="true">Two-tier wage structure, as those 5,000 new hires who were previously temp will be brought in at their current wage of $18/hour, rather than the $28/hour current full-timers earn <LI _extended="true">Undisclosed revisions in the Jobs Bank program that continues to pay laid-off employees
- Reduction in labor cost to produce vehicles, though might not be realized right away