GM’s Statement On End of UAW Strike

By September 26, 2007Labor Unions

GM’s Statement:

FOR RELEASE: 2007-09-26
GM and UAW Reach Tentative Agreement On New National Labor Contract
Company To Strengthen U.S. Manufacturing Presence With Significant Future Investments

Parties Also Agree To Create Independent Retiree Health Care Trust

DETROIT, Mich. – General Motors and the UAW have reached a tentative agreement on a new national labor contract, covering approximately 74,000 represented employees. The agreement is subject to UAW member ratification.

The tentative agreement includes a memorandum of understanding to establish an independent retiree health care trust, as well as other changes to the national agreement. Following ratification, implementation of the memorandum of understanding is subject to approval by the courts, and satisfactory review of accounting treatment with the Securities and Exchange Commission.

“There’s no question this was one of the most complex and difficult bargaining sessions in the history of the GM/UAW relationship,” said Rick Wagoner, GM Chairman and CEO. “I’d like to thank UAW President Ron Gettelfinger, UAW Vice President Cal Rapson and their bargaining team for their leadership and hard work in negotiating the agreement.”

The national agreement paves the way for GM to significantly improve its manufacturing competitiveness, providing the basis for maintaining and strengthening its core manufacturing base in the United States.

“This agreement helps us close the fundamental competitive gaps that exist in our business,” Wagoner said. “The projected competitive improvements in this agreement will allow us to maintain a strong manufacturing presence in the United States along with significant future investments.”

Followed by corporate background.

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  • Norm says:

    I’m not so sure this is good news. After reading numerous articles on the internet, the one that gets down to it sounds like a bad deal.
    In the days leading up to the strike the news was that the two sides were close to a proposal. And that the UAW would consider giving the company the opportunity to end any further obligation to the retirees and surviving spouses in exchange for job security. Yet, in the article referenced above it would appear that they are looking to ratify an agreement that not only embraces the VEBA trust but also has no real job security allowances. In light of the latest agreements the UAW has allowed Mr Ron Gettelfinger to craft with Caterpillar, and Delphi corps I would urge the autoworkers to be wary. If the rank and file membership doesn’t demand that the international UAW provide more than the merest highlights of such an “historic agreement” prior to being asked to vote for ratification they may very well find themselves in the same position.

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