GM-UAW Savings Said to Be $1 Billion
March 17, 2009
Bloomberg reports that General Motors expects to save more than $1 billion through labor changes approved by the Company and the United Auto Workers. The savings are expected to be more than twice what Ford will save through its recent negotiations with UAW.
The revised contract affects 62,000 GM workers who participate in the Company’s Voluntary Employee Beneficiary Association union retiree health-care fund. The contract negotiations mark significant savings for GM but are a fraction of the $28.4 billion in concessions required as a condition of GM’s agreement with the U.S. Treasury to keep $13.4 billion in loans.