General Motors’ hourly workers represented by the UAW overwhelming approved contract concessions this week in advance of GM’s probable Chapter 11 bankruptcy filing.
The GM rank-and-file voted 74% in favor of the contract, the UAW announced today. GM has about 54,000 UAW-represented workers.
“There’s been a lot of people who have been in a very anxious mode, if you will, for due cause,” UAW President Ron Gettelfinger said at a news conference today. But “we are satisfied that we’ve done the right thing here to give us a lifeline into the future.”
The agreement, which takes effect at 4 p.m. EDT today, permits GM to use equity instead of cash to fund most of a $20 billion hourly retiree health trust, or VEBA.
Cal Rapson, UAW vice president, said the annual savings to GM is about $1.2 billion to $1.3 billion.
“We very much appreciate the support of our employees and retirees,” Diana Tremblay, GM’s vice president of labor relations, said in a statement. “Their shared sacrifices will enable GM to become a stronger, more viable company that will continue to deliver world-class cars and trucks.”
David Barkholz is a reporter at Automotive News, a sister publication of Pensions & Investments.
