UAW Agreement Includes GM Stock

By: Associated Press
By: Associated Press

General Motors Corp. will give the United Auto Workers union 17.5 percent of its common stock, $6.5 billion of preferred shares and a $2.5 billion note to fund a trust that will take over retiree health care costs starting next year.

The funding for the trust was outlined in a summary of concessions that the company and union have agreed to as GM tries to restructure outside of bankruptcy. Plant-level union officials met in Detroit on Tuesday to get briefed on the agreement, and The Associated Press obtained a summary of the concessions.

The summary says most of GM's 61,000 hourly workers will get another buyout and early retirement offer, this one sweeter than the most recent one.

Production workers will be offered $20,000 plus a $25,000 car voucher for early retirement, while skilled trades workers will get $45,000 plus the car voucher.

Buyout packages include $115,000 and the car voucher for employees with 20 or more years of service. Those with less than 10 years would get $45,000 and the car voucher to leave the company.

The summary also says GM will take back five facilities from Delphi Corp., its former parts arm now in Chapter 11 bankruptcy protection.

GM will take ownership of Delphi Saginaw Steering in Saginaw, Mich.; Delphi Thermal Systems in Lockport, N.Y.; Delphi Powertrain in Rochester, N.Y.; Delphi Powertrain Systems facilities in Rochester, N.Y., and Grand Rapids, Mich.; and Delphi Electronics and Safety in Kokomo, Ind.

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  • by Anonymous Location: Michigan on May 27, 2009 at 07:26 AM
    It's nice to see my tax money going to union workers who lost their jobs because they were greedy. Why is it that these people who sucked the life out of the golden goose (G.M.) are being rewarded by federal stimulus funds ment to build up the economy. I wonder why these people are getting such huge payoffs when the one hundred plus teachers who lost their jobs in Lansing this year won't get the same deal. Oh! thats right, they played the game by the rules and went to college received a teaching degree and found a profession. The UAW people are the people who screwed around in school and didn't finish high school because daddy could get them into a high paying cushhy job at G.M. Some how this picture doesn't seem fair. The people who have always taken the easy way out are doing it again at the expence of those of us who work and pay taxes. It looks like another Obama entitlement program. God only knows what is next.
  • by floyd Location: brooklyn on May 26, 2009 at 08:37 PM
    You need to report on who all this effects the retireries. A lot are worried about there retirement. (will they loose it or what)
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