ALERT: UAW & GM (and Treasury) Reach Agreement

Source: WXYZ-TV, Detroit

www.wxyz.com

Nothing in print at the moment.

I'll fill this in ASAP.


ALERT: UAW & GM Reach Agreement

Last Update: 12:10 pm

(WXYZ) - The United Auto Workers say they have reached a tentative understanding with the US Treasury and General Motors.

The Agreement is a change to the union's 2007 contract, and contains modifications to the agreement and to the Independent Voluntary Employee Beneficiary Association trust, which is also known as the VEBA.

Exact details are being withheld until the changes are presented to and voted on by the UAW's GM members.

Read more: http://www.wxyz.com/news/story/ALERT-UAW-GM-Reach-Agreement/jRJOuZ8V1kmdrV82vq7W5g.cspx

I guess we'll see.

http://www.detnews.com/article/20090521/AUTO01/905210475/UAW-makes-tentative-deal-with-GM--Treasury

Thursday, May 21, 2009
UAW makes tentative deal with GM, Treasury
Robert Snell / The Detroit News

The United Auto Workers has reached a tentative deal with the U.S. Treasury Department and General Motors Corp. on modifying a 2007 labor agreement and restructuring payments into a union-run health care trust.

-snip-

One major requirement is for GM and the UAW to finalize a deal to swap, for stock, at least half of the more than $20 billion the UAW is owed for a trust fund that takes over retiree health care benefits next year. The health care trust is Voluntary Employees' Beneficiary Association, also known as a VEBA.

GM wants to reach a deal before Tuesday, when its bondholders, holding $27.2 billion in debt, must decide whether to exchange their bonds for 10 percent of GM's equity.

The GM labor modifications are expected to be patterned after a deal reached between Chrsyler LLC and the UAW. That deal was brokered by the Obama auto task force and included a no-strike clause in 2011 and an agreement to seek another 3,500 hourly buyouts.

-snip-

to the plan they are currently voting on.

That's a fantasy. The bondholders will turn down the deal gigantically.

Source: Reuters

DETROIT (Reuters) - General Motors Corp cleared a key obstacle in its restructuring on Thursday as the United Auto Workers agreed to cut labor costs and accept new terms for a $20 billion union retiree healthcare obligation.

Shares of the U.S. automaker rose 32 percent after the UAW announced the agreement with GM and the U.S. Treasury, prompting Standard & Poor's equity analysts to repeat a "strong sell" on the stock, saying bankruptcy was still likely.

The UAW deal would give embattled GM a blueprint for concessions that could be carried into a bankruptcy filing that analysts expect could come by the end of May or early June.

The tentative agreement was reached after a round of intensive talks involving representatives of the Treasury.

Read more: http://www.reuters.com/article/newsOne/idUSTRE54K4JI20090521