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
Historic Deal in Sight for GM and UAW
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 that...   (Associated Press)

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. (More General Motors stories.)

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