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.