GM-UAW Reach Deal To End Strike After Marathon Bargaining Session

CNNMoney:

Negotiators from the United Auto Workers union and General Motors reached a tentative agreement on a deal early Wednesday to end a two-day old strike by 73,000 workers, according to the union and the company.

Terms of the agreement were not immediately available, but the statement from the company said the deal does include the establishment of a union-controlled trust fund that will assume responsibility for future retiree health care costs from GM (Charts, Fortune 500), 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.

"There's no question this was one of the most complex and difficult bargaining sessions in the history of the GM/UAW relationship," said a statement from GM Chairman and CEO Rick Wagoner. "I'd like to thank UAW President Ron Gettelfinger, UAW Vice President Cal Rapson and their bargaining team for their leadership and hard work in negotiating the agreement."

Read the whole story: CNNMoney

Comments

[fly on the window]

11:29 AM on 09/27/2007

I sympathize with any employer who has to incur the staggering costs of health care benefits for its retirees. Consider this scenario: A retired auto worker receives bypass surgery, and later, his wife is diagnosed and treated for cancer. The medical costs, that will be incurred by his former employer, will exceed the auto worker's lifetime earnings.

[realitytrumpsbull]

10:36 AM on 09/27/2007

Robots don't take sick days...

[larry278]

10:31 PM on 09/26/2007

This may prevent GM from going bankrupt till 2010 at the latest. Wnen GM goes bankkrupt UAW jobs & benefits are history.

[KindAndThoughtful]

03:25 PM on 09/26/2007

Ending the strike is good for both sides. Nobody wanted or could afford a strike.




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[Stevelagain]

09:52 PM on 09/26/2007

My first impression is what happens if it turns out that a corrupt union has just gotten it's hands on a multi billion dollar health care nest egg? How badly damaged can the retirees actually be?

If that were my health care, I'd sure be concerned. And by the way, what is this health care plan? Why so huge? Is it because they aren't using Medicare and some "medi-gap" but in fact have some super premium health care most people don't have? And what happens if they lose it? They just use Medicare and pay for medigap like everyone else in the contry?

So what? My folks do that, millions do and they are getting by fine(all on their own as some dishonestly put it). Meaning medicare does not put you all on your own. Dad had his heart operation and is doing fine. This year he's having two knees REPLACED. These workers will get along fine even if their premium health care goes away some day.

Never bank on a great retirement option that depends on some company remaining profitable forever. Never pool your assets like that. Too many promises to too many people for too long.

Sorta like Social Security and Medicare.....when will the demcorat do-nothing congress fix social security and Medicare...never?

[therealredstateblues]

06:30 AM on 09/27/2007

Even Greedspan says that social security is easily fixed, there is only about a 2% shortfall. Fix it with a combination of raising the cap from 90,000, raising retirment age a couple years (everyone is living and working longer these days) and rolling back the Bu$h tax cuts on the wealthiest 2%. Medicare on the other hand was also only a little short too until the republican congress under bush screwed it all up - either by design or incompetence (probably a little of both). Of course pricvatising it is clearly not the answer - as left to its own devices health costs have exploded many times the (phony) rates of inflation that conveniently do not include health costs!

[imaproudliberal]

02:36 PM on 09/26/2007

So let me get this straight. GM claims that $1,500 of the cost of every car goes to pay for employee health care, and that's the reason that they aren't competitive in today's "market". So now they agree to a one-time payment of $35 billion to the UAW for health care. Now that they can no longer blame their uncompetitive market position on employees & health care costs, who gets the blame in 5-10 years when they STILL aren't competitive? Also, did Rick Wagoner & all the blue suits at headquarters agree to have their salaries frozen for the next 4 years as well?

This is just the beginning, I'm afraid. More companies will use the GM model for their own future union contract negotiations. The only ones who came out ahead in this deal are the fat cats at the top of GM. And yet the corporate boot lickers at CNBC - especially Larry Krudlow - will continue to claim that life in middle class America is going great! The economy is booming! Wages are higher & inflation isn't a problem (assuming of course you take out food & oil costs)! It's the greatest story never told by the liberal media!

[nomoredead]

08:48 PM on 09/26/2007

Isn't it amazing that we let the greedy system of healthcare destroy american companies, bankrupt families and let people die?

[nomoredead]

10:09 PM on 09/26/2007

Heres what I would do if I had $35 billion-73,000 employees and 270,000 retirees. Tell the insurers to go to hell, invest the money and pay out of pocket for medical services with the option to have major surgery in Thailand, Canada, Mexico or India (very reasonable and better than most US hospitals) You would estimate not everyone is going to have major health problems. If need be open your own medical clinic near the large factories and hire your own doctor to do the basic physicals and check-ups. You get the picture...just my idea..

[andyg]

02:47 AM on 09/27/2007

you can't buy medical services in Canada.

[Justinpassing]

01:53 PM on 09/26/2007

I hope the union knows that most big corporate pension funds have been laced and contaminated with derivatives.......!!!!!!!

[nomoredead]

06:53 AM on 09/27/2007

Move the fund to Dubai...it looks like they are doing pretty good.

[mgh234]

01:23 PM on 09/26/2007

*cough* competitive advantage *cough*

*cough* This is going to hasten GM's bankruptcy and we're going to be stuck with their healthcare bill, and thousands more will be laid off (quicker too) than needed to be *cough*

[mrcontinental]

01:17 PM on 09/26/2007

What just happened to thread? It shifted as if it's sitting on a fault line.

[loki]

12:37 PM on 09/26/2007

United Auto Workers Reach Agreement with GM, End Strike

Congratulations to the United Auto Workers, who reached a tentative agreement with General Motors this morning and ended a brief strike that saw 73,000 workers walk off the job around the country. It appears the union received additional job security for its members in exchange for taking over responsibility for the health care costs of GM's retired workers. A union-controlled trust fund will now manage retirees' health care and absorb many of the expenses associated with that health care.

Far more information available here.http://money.cnn.com/2007/09/26/news/companies/uaw_gm_deal/index.htm?postversion=2007092604

[mrcontinental]

01:10 PM on 09/26/2007

There's gonna be some absorbing gonna on but it won't be expenses I'm afraid.

Wait till they hit them with the healthcare premiums which WILL be coming.

[oogabooga]

11:53 AM on 09/26/2007

The West Coast Teamsters have had the trust fund/annuity setup for years. It works great, if your leadership is honest and competent.

[rodeman]

12:22 PM on 09/26/2007

oogabooga, that's one hell of a big IF.....?

[mrcontinental]

01:07 PM on 09/26/2007

You ain't kidding!

[godlessclif]

03:32 PM on 09/26/2007

Honest as the Teamsters

[nomoredead]

06:59 AM on 09/27/2007

or Enron, or Global Crossing, or Worldcom, or Adelphia, or

[loki]

11:13 AM on 09/26/2007

I could be wrong, but wasnt it once upon a time when the union did control the health care portion, and it was the companies who fought to get control of those funds so they could use its resources to boost their bank accounts?
That would make sense. Now that theyve bled the accounts dry, they dont want to pay it back. So they are going to toss it back in the lap of the people they stole it from.

Hmmm, sounds like what is going on with Social Security. Politicians bled it dry, and now dont want to pay the IOUs back, so they are saying its the publics problem now.

[mrcontinental]

01:06 PM on 09/26/2007

Yep. Social Security is next.

And the sheep continue to line up to be slaughtered even though these thefts are going on in plain view for all the world to see. Madness!

[notyourproblemYET]

11:10 AM on 09/26/2007

i suspect this will be the straw that breaks the camels back.Soon GM will say enoughs enough.They will outsource for cheap labor and no benefits. They arent going to take this much longer..these ballsy Americans demanding their rights.

[Chris]

10:32 AM on 09/26/2007

I wonder once the UAW is unable to meet the obligations they promised who will the huffsters blame then?

Huffsters how do you feel abtou the UAW nowe investing more of its members monies in the markets?

[mrcontinental]

01:04 PM on 09/26/2007

Look out below!

That about covers it.

[booker52]

10:00 AM on 09/26/2007

I for one am glad that they didn't break the union. I am also glad they retained the healthcare benefits for the retirees. As a retiree myself I hope my company does not do away with mine in the future!!! Only time will tell.

[Crozier]

10:24 AM on 09/26/2007

Lindamart60 is independently wealthy. She supports the neo-conservative global PNAC agenda. She, of course, drives a foreign luxury car and lives in a luxurious home with luxurious furnishings which of course, was paid in cash from both her trust funds and her agile investment strategies.

Her favourite female author is the late Ayn Rand. She is fully vested in the virtues of selfishness and individuality. She forgives the loss of conservative principles among the neocons as necessary to promote her agendae.

Lindamart receives a Christmas card from George and Laura every year....signed by that infamous pen that mimics his real signature. Mimicry with George and Laura includes "sincere wishes" that Linda have a prosperous new year.

Yes, Lindamart invests in firms that sold out their American workers and found slave labour with low wages abroad. Lindamart does not like the "inferior working class" to expect fair wages and health benefits. After all, these underclass were born to serve the worthy, eh?

[lindamart60]

10:55 AM on 09/26/2007

I drive an American made vehicle.

I've never owned a foreign vehicle.

Many liberals claim to support the UAW, but don't purchase the vehicles they produce. - please support the UAW and General Motors.


God bless the troops

[lindamart60]

09:57 AM on 09/26/2007

I hope every liberal posting here on Arianna Huffington's website claiming to be pro-UAW rushes out to their local dealership today and purchases a General Motors vehicle.



God bless the troops.

[loki]

11:15 AM on 09/26/2007

I hope that every troll posting here on Arianna Huffingtons website claiming to be Pro Iraq invasion rushes out to their local recruiting center today and joins , or has their children sign up to fight in Iraq.

God Bless or Troops. Because no stinking republican is going to lend any support except their mouth.

[mrcontinental]

01:02 PM on 09/26/2007

Are chickenhawks considered mammals are fowl?

[lindamart60]

01:44 PM on 09/26/2007

loki, yes, the military is almost exclusively republican.

Sometimes, a liberal here on Arianna Huffington's website will claim their "family members" voluntarily enlisted in the United States military. As you claim, if they enlisted, it was due to their parents forcing them to enlist. That's the claim of liberals.

Otherwise, why would an anti-war liberal voluntarily enlist to fight a war they consider 'illegal'?

God bless the troops.

[Mike169]

01:51 PM on 09/26/2007

I've got an Impala and support the UAW workers. What's the big deal?

[godlessclif]

03:39 PM on 09/26/2007

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