The automakers would each agree to pour billions of dollars into a trust fund to help provide for the retiree insurance. But with that one-time payment, the carmakers would win a cap on their future liability...
"That [liability] will be part of the upcoming negotiations for sure," says Tony Faria, an automotive expert at the University of Windsor's Odette School of Business, just across the Canadian border from Detroit. "The unions fully realize these companies are in trouble."
In 2006, a major supplier to the auto industry, Goodyear Tire & Rubber Co., reached such an accord with the United Steelworkers. If it happened there, I would think it could also work with the UAW.
Full story here.
In 2006, a major supplier to the auto industry, Goodyear Tire & Rubber Co., reached such an accord with the United Steelworkers. If it happened there, I would think it could also work with the UAW.
Full story here.
ateixeira says:
09:01 AM, 06/ 1/07
In the end, I'm sure they'll find a way to screw the employees while UAW walks away with a nice check and automakers rid themselves of this "liability"
iancar says:
03:12 PM, 06/ 1/07
Big 3 management teams had wasted much more money on buying dying brands and stupid projects like Azteck than any union ever could. They should take the blame and the cut, not those average workers.
estreka says:
01:57 PM, 06/ 4/07
I can't believe Ford had the nerve to issue bonuses last year. I will say, the average employee will suffer. I also think the UAW is raking it in, big time. It's so parasitic.