Local UAW Leaders OK GM Agreement

Tentative pact may save struggling auto giant more than $1B

(NEWSER) - Monitored by the Treasury department, General Motors and the United Auto Workers have reached a tentative deal to modify conditions of their labor contract and retiree health care trust, which could save the flatlining automaker more than $1 billion. Still, Chapter 11 bankruptcy remains likely for GM, and union reps must approve the pact, the Detroit Free Press reports. More»

The company's 45K hourly workers to get around $4K each

(NEWSER) - General Motors will hand out profit-sharing checks totaling $189 million this year, or more than $4,000 per worker, the company announced today. That more than doubles the automaker’s previous record of $1,775, set in 2000, according to the New York Times . The payout will be less than the $5,000 Ford’s workers are getting, but the Ford figure includes a bonus, while the GM figure is “strictly what it would have generated under the agreement” it has with the UAW, a spokesman said. As one worker said, “Just the fact that we’re seeing a profit-sharing check, that’s great stuff.” More»

(AP) - United Auto Workers members have ratified a package of concessions designed to reduce General Motors' labor costs. Union president Ron Gettelfinger said today 74% of GM's production and skilled-trade workers voted in favor. The vote comes before the company's expected Chapter 11 bankruptcy protection filing Monday. Bankruptcy experts say having an agreement in place before the filing will help move the process through court more quickly. More»

(NEWSER) - If General Motors goes into bankruptcy next Monday—as is widely expected—the US government will own 70% of the automaker, the New York Times reports. Under a plan that GM officials detailed today to union members, the UAW would take a 17.5% stake though its health care fund, with a potential for 2.5% more. Bondholders, who have more money at risk than the UAW, would get just 10% of GM. More»

Firm restructuring in bid for more government aid

(AP) - General Motors will cut 21,000 US factory jobs by next year, phase out its Pontiac brand, and ask the government to take company stock in exchange for half of GM's government debt as part of a major restructuring effort needed to get more government aid, the firm said today. GM will also offer 225 shares of common stock for every $1,000 in notes held by bondholders as part of a debt-for-equity swap. More»