General Motors: carmaker reaches agreement with the UAW but EU Member States are divided on the fate of GM Europe

Agreement between management and UAW. Once more, General Motors obtained compromises from the United Auto Workers. After agreeing, in March, to bring the wage costs of the carmakers’ workers in line with those of non-union members employed by foreign manufacturers in the US, the union accepted to sit at the negotiating table. Until now, the UAW and the management failed to reach an agreement on health coverage for the group’s pensioners. GM, which owes $20 billion to the fund managed by the UAW, proposed to pay half the amount due under the form of shares. Until now, the UAW refused this proposition. However, faced with government pressure over the carmaker to find an agreement with the union, the UAW finally caved. GM will only owe $10 billion to the fund and pay the rest in shares. The union would own 17.5% of the company’s capital. The 60,000 union members still need to ratify the agreement by Monday.
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31, the Obama administration gave the carmaker 60 days to present a new plan, including negotiations with the powerful UAW and creditors.

Agreement between management and UAW. Once more, General Motors obtained compromises from the United Auto Workers. After agreeing, in March, to bring the wage costs of the carmakers’ workers in line with those of non-union members employed by foreign manufacturers in the US, the union accepted to sit at the negotiating table. Until now, the UAW and the manage

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