Filed under: Deals, Rumors, General Motors (GM), Employees
Friday night, the nation’s largest auto maker, General Motors‘ (NYSE: GM) old union contract expired and the company is working hard to gain approval of a new four-year UAW contract. Three people that are close to the talks have released some of the company’s ideas, but have remained anonymous in their revelations.
One of the company’s new proposal is that it will cap out-of-pocket costs in order to gain a better bargaining position with the union-controlled health fund. It also has suggested a freeze in cost-of-living raises and base wages. What is at stake here is the approval by the union to allow GM to get rid of retiree health-care liabilities that ended up costing the Detroit auto maker somewhere in the neighborhood of $3.3 billion in cash during 2006.
In its attempt to unload the current health-care liabilities, GM is hoping to start a Voluntary Employee Beneficiary Association in which it would only have to contribute around 60% of its current liabilities to get started.
Continue reading General Motors’ (GM) proposals for United Auto Workers
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