GM & UAW Reach Agreement
According to the Associated Press:
DETROIT (AP) — The United Auto Workers and General Motors Corp. tentatively agreed Wednesday to a contract that ends a two-day strike — the first nationwide walkout against the automaker in 37 years — and puts responsibility for retirees' health care into the union's hands.
Union members were told to begin reporting to work Wednesday. UAW officials said they hoped to begin talks with Ford and Chrysler even before GM workers vote on ratifying the pact.
News of the settlement sent GM shares more than 4 percent higher in morning trading Wednesday as Wall Street interpreted the deal as a win for the automaker.
GM and the UAW confirmed that the deal creates a GM-funded, UAW-run trust to administer retiree health care. The two sides gave no other details, but two people briefed on the contract told The Associated Press that it also would give workers bonuses and lump-sum payments and would pay some newly hired workers at lower rates.
The people requested anonymity because the details of the contract haven't been released publicly, including whatever concessions GM may have made over job security, which was the reason the UAW gave for walking off the job.
The union said the agreement with the nation's largest automaker was reached shortly after 3 a.m. The UAW canceled the strike about an hour later...click to continue.
