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Historic Deal in Sight for GM and UAW

Agreement reached on shifting health costs to union-run trust

By Jane Yager,  Newser Staff

Posted Sep 22, 2007 7:32 AM CDT
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(Newser) – After bogging down for several days, talks between General Motors and the UAW got back on track yesterday as automaker and union reps closed in on a historic agreement to shift health-care costs to a union-controlled trust, the Wall Street Journal reports. The two sides are said to have a greed on how much money GM will put into the trust, and on "triggers" to protect both the UAW and GM in case of spiraling health care costs or a downturn in sales.

The deal is the key to the Detroit automakers' bid to reduce the $25-to-$30-an-hour labor-cost gap with their Asian competitors. Talks have moved on to standard collective-bargaining issues such as wages, with a final deal expected within two days. The UAW is expected to negotiate similar health-care trusts at Ford and Chrysler.

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 at the General Motors Powertrain facility leave work at the end of their shift in Warren, Mich., Monday, Sept. 17, 2007. Bargainers for General Motors Corp. and the United Auto Workers resumed contract negotiations Monday amid optimism that they are getting closer to reaching a critical contract agreement. (AP...
Workers at the General Motors Powertrain facility leave work at the end of their shift in Warren, Mich., Monday, Sept. 17, 2007. Bargainers for General Motors Corp. and the United Auto Workers resumed...   (Associated Press)
Ford Motor Co., assemblyman Reggie Hill works on a 2008 Ford Focus at the automaker's Wayne Stamping Assembly in Wayne, Mich., Thursday, Sept. 6, 2007. As General Motors Corp. and the United Auto Workers entered their fifth day of bargaining under hour-by-hour contract extensions Wednesday, Sept. 19, the unique issues...
Ford Motor Co., assemblyman Reggie Hill works on a 2008 Ford Focus at the automaker's Wayne Stamping Assembly in Wayne, Mich., Thursday, Sept. 6, 2007. As General Motors Corp. and the United Auto Workers...   (Associated Press)
Employees enter GM's Romulus Engine Powertrain Plant in Romulus, Mich. as contract negotiations continue Friday, Sept. 21, 2007. General Motors Corp. and the United Auto Workers are close to an agreement on a historic deal that would transfer the automaker's retiree health care costs to a trust managed by the...
Employees enter GM's Romulus Engine Powertrain Plant in Romulus, Mich. as contract negotiations continue Friday, Sept. 21, 2007. General Motors Corp. and the United Auto Workers are close to an agreement...   (Associated Press)
A worker loads a SUV onto a carrier 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 that...
A worker loads a SUV onto a carrier 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,...   (Associated Press)
United Auto Workers President Ron Gettelfinger, left, and General Motors Chairman and CEO Rick Wagoner shake hands to open their contract talks at the UAW/GM Center for Human Resources in Detroit, Monday, July 23, 2007. The national contract between the UAW and the automakers expires Sept. 14. (AP Photo/Carlos Osorio)
United Auto Workers President Ron Gettelfinger, left, and General Motors Chairman and CEO Rick Wagoner shake hands to open their contract talks at the UAW/GM Center for Human Resources in Detroit, Monday,...   (Associated Press)
Logos for General Motors and the United Auto Workers are shown on the UAW-GM Center for Human Resources in Detroit, Tuesday, July 31, 2007. General Motors Corp. earned $891 million in the second quarter, a huge reversal from the $3.4 billion loss it posted in the same period last...
Logos for General Motors and the United Auto Workers are shown on the UAW-GM Center for Human Resources in Detroit, Tuesday, July 31, 2007. General Motors Corp. earned $891 million in the second quarter,...   (Associated Press)
In this photo provided by General Motors, General Motors Chairman and CEO Rick Wagoner, left, and International UAW President Ron Gettelfinger shake hands to the kick-off the 2007 UAW-GM national contract negotiations in Detroit, Monday, July 23, 2007. Shaking hand behind them are GM North America Vice President Labor Relations...
In this photo provided by General Motors, General Motors Chairman and CEO Rick Wagoner, left, and International UAW President Ron Gettelfinger shake hands to the kick-off the 2007 UAW-GM national contract...   (Associated Press)
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