General Motors Corp. and the United Auto Workers have reached a tentative agreement on a
new labor contract that would include the establishment of a company-funded,
UAW-administered healthcare trust.
The agreement between the union and the automaker, if approved, would set up a voluntary
employee benefit association, shifting some healthcare costs from GMs books to a
tax-exempt fund. GM is the nations largest purchaser of healthcare after the federal
The details of the association have yet to be worked out, and its implementation is
subject to approval by the courts and the Securities and Exchange Commission, GM officials
Theres no question this was one of the most complex and difficult bargaining sessions in
the history of the GM/UAW relationship, Rick Wagoner, GM chairman and chief executive
officer, said in a written statement.
The tentative agreement, to be voted on by workers as early as this weekend, ended a
two-day strike. Workers could return to the picket lines if they reject the deal.
Were proud of this tentative agreement, and we look forward to getting into the field
and discussing it with our members, UAW President Ron Gettelfinger said in a written
statement. -- by Rebecca Vesely
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