General Motors and UAW have reached a tentative agreement on a new national labor contract. A Memorandum of Understanding for establishment of an independent retiree health care trust is included in the tentative agreement.
The agreement is subject to UAW member ratification. Implementation of the MoU is subject to approval by the courts and a review of accounting treatment with the Securities and Exchange Commission.
Rick Wagoner, GM Chairman and CEO said,
There’s no question this was one of the most complex and difficult bargaining sessions in the history of the GM/UAW relationship. I’d like to thank UAW President Ron Gettelfinger, UAW Vice President Cal Rapson and their bargaining team for their leadership and hard work in negotiating the agreement.
This agreement should provide a respite for GM, considering the UAW workers decided on a strike and work had come nearly to a standstill.
