UAW Members Approve General Motors Concessions

By: Associated Press Email
By: Associated Press Email

Stay up-to-date with KAKE News:

Friday, May 29, 2009

GM is thanking its employees after the United Auto Workers union ratified a package of concessions it says will save the automaker more than $1 billion a year.

The UAW says 74% of its 54,000 GM employees voted in favor of the deal that freezes wages, cancels bonuses, eliminates noncompetitive work rules and ends the possibility of a strike until 2015.

It also gives a union-run retiree health care trust 17.5% ownership of a post-bankruptcy protection GM, with a warrant to buy another 2.5%.

The Detroit automaker says the shared sacrifices of its employees and retirees "will enable GM to become a stronger, more viable company."

GM has received more than $19 billion in loans from the U.S. government, which would get more than 70% ownership of the new company. It's expected to file for bankruptcy protection Monday. Experts say having the deal with employees in place would mean a smoother experience in bankruptcy court.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
KAKE TV 1500 N. West Street Wichita, KS 67203-1323 (316) 943-4221
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 46482347 - kake.com/a?a=46482347