GM Talks Resume With Optimism

Marathon yesterday yielded progress on financing for health-care trust
By Lucas Laursen,  Newser Staff
Posted Sep 17, 2007 12:42 PM CDT
Workers walk out of the United Auto Workers Local 735 hall after getting updates on contract talks with General Motors Corp., Sunday, Sept. 16, 2007, in Ypsilanti, Mich. Negotiations were to resume Sunday...   (Associated Press)
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(Newser) – Talks between GM and UAW reps resumed late this morning after a 16-hour session that ran to 3am and came close to an agreement on the key issue of shifting heath-care costs to a union-run trust.  Both sides confirmed good progress, and employees are on the job today, despite the contract expiration Friday night, the Wall Street Journal reports.

But the situation is still tenuous, as the existing contract is being extended on an hour-by-hour basis and the sides still have significant areas of disagreement. A key sticking point has been how much GM will pay into the trust that will assume $50 billion in liabilities for health care coverage for current and retired employees.