UAW Says It Has Tentative Contract With GM

The United Auto Workers said that it has reached a tentative new contract with General Motors and the U.S. Treasury aimed at helping the automaker restructure.

The terms include modifications to a UAW-administered retiree health trust known as a voluntary employee beneficiary association, the union said in a statement Thursday, May 21.

Terms were not released, pending a ratification vote by rank-and-file union members at GM.

The UAW agreed to the concessions as GM faces a June 1 deadline to prove its viability to the federal government or face Chapter 11 bankruptcy protection. Along with the labor concessions, GM and the U.S. Treasury also are asking GM bondholders to forgive about 90 percent of that unsecured debt.

Treasury has kept GM operating with about $15.4 billion in bailout loans.

Filed by David Barkholz of Automotive News, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com

Workforce Management’s online news feed is now available via Twitter