General Motors Corp., Detroit, and the United Auto Workers union today reached a tentative agreement on a new labor contract that includes a memorandum of understanding that GM will create an independent retiree health care trust for UAW workers, according to GMs website. The union would be responsible for investing money in the trust, a voluntary employees beneficiary association. Neither side confirmed the size of the VEBA, which according to some published reports could total more than $50 billion in assets.
UAW members must still ratify the agreement in meetings that could start by the end of the week, according to the UAWs website. The VEBA agreement is also subject to approval by the courts and an SEC review, according to a release from GM.