Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook
Guy Buys $123 Safe on eBay, Finds $26,000 Inside Seller tries to get half the cash back, fails »

GM and UAW Hit Impasse on Health Care

Talks stalled on funding of union-run trust for medical costs

By Jason Farago,  Newser Staff

Posted Sep 20, 2007 6:38 AM CDT
Email

(Newser) – General Motors has reached an impasse with the UAW on the transfer of health care liabilities to a union-run trust, a serious blow to the company's plans for rejuvenation. Five days into contract talks, negotiators could not agree on the amount GM would pay into the fund, reports Bloomberg, and talks shifted to other issues. The Detroit Free Press's sources were optimistic a formula could still be hammered out.

There appears to be a several-billion-dollar gap on the amount GM would make in a one-time deposit into the trust; at the union's request the talks have shifted to a possible new 4-year contract that would not involve the transfer of health-care liabilities.
The union chose to negotiate first with GM and then apply the settlement terms to the other  automakers.

Pictured is the exterior of the the General Motors Assembly Plant in Arlington, Texas, Monday, Sept. 17, 2007. As General Motors Corp. and the United Auto Workers returned to the bargaining table, auto shares rose on optimism the two sides were closer to a critical agreement that could take billions...
Pictured is the exterior of the the General Motors Assembly Plant in Arlington, Texas, Monday, Sept. 17, 2007. As General Motors Corp. and the United Auto Workers returned to the bargaining table, auto...   (Associated Press)
Finished SUVs are loaded onto a carrier by workers at the General Motors Assembly Plant in Arlington, Texas, Monday, Sept. 17, 2007. As General Motors Corp. and the United Auto Workers returned to the bargaining table, auto shares rose on optimism the two sides were closer to a critical agreement...
Finished SUVs are loaded onto a carrier by workers at the General Motors Assembly Plant in Arlington, Texas, Monday, Sept. 17, 2007. As General Motors Corp. and the United Auto Workers returned to the...   (Associated Press)
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 between General Motors Corp. and the United Auto Workers with widespread reports of progress but several tough...
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)
General Motors Corp. workers check lists posted at the United Auto Workers Local 1714 Hall to see when they are assigned to strike duty, in Lordstown, Ohio, early Saturday, Sept. 15, 2007. Negotiations between the UAW and GM continued past a midnight deadline on an hour-by-hour basis, a local union...
General Motors Corp. workers check lists posted at the United Auto Workers Local 1714 Hall to see when they are assigned to strike duty, in Lordstown, Ohio, early Saturday, Sept. 15, 2007. Negotiations...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

Deal could make UAW one of nation's largest health care consumers
Detroit News

Gap on health care issue might be closing
Detroit Free Press

 
health care • United Auto Workers • General Motors • Detroit • auto industry • contract

More Newser Stories

GM Talks Resume With Optimism

Dark Day for Detroit

GM Offering Buyouts to 5,200 Workers

GM’s Wagoner Weathering the Storm

More UAW Locals Nix Chrysler Deal
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne