UAW says it has reached deal with GM, government
DETROIT (AP) — The United Auto Workers union has reached a tentative deal with the government and General Motors Corp. that offers to cut labor costs and fund a union-run trust that will take over retiree health care costs next year.
The union announced the deal in a short statement issued Thursday that gave no details, which were withheld pending meetings with members to explain the terms.
The move is a key step toward GM's efforts to restructure outside of bankruptcy court. The company, which has received $15.4 billion in federal loans, faces a June 1 government-imposed deadline to restructure or be forced into bankruptcy protection.
Union members still have to vote on the deal, according to the statement. It makes no mention of factory closures or production of vehicles outside the U.S., items that the union has protested in Detroit and Washington as the deadline approaches.
GM plans to close 16 more factories, costing 21,000 hourly workers their jobs, as it tries to cut labor costs and shrink its manufacturing footprint to match lower demand for its products.
The Treasury Department, which has been overseeing GM's restructuring efforts, had no immediate comment.
GM has about 61,000 hourly workers in the U.S., but plans to take that number down to 40,000 by 2010.
May 22, 2009 at 2:14 p.m.
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cartrader, you couldn't be more right. Ultimately, it falls on us. Most however, will argue that because they don't want to hear the truth. Sure, the truth stings, but it only last for awhile. Everyone thinks it all comes pain free. Sorry.
May 21, 2009 at 9:30 p.m.
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Sandman... Exactly. THANK-YOU! Accountability!
Living beyond our means, thinking we'll work it all out later, is a fool's mentality!
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Decades ago, we "planned for a rainy day". What that REALLY meant is having enough to stay afloat, if the bottom dropped out from under us, financially.
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Self-gratification, immediate satisfaction... the ME-ME-ME, its all about ME mentality. Buy that expensive car. Get a bigger/better house than the Jones'. Get your child enrolled in the best school, live beyond your means. Rack up those credit card bills.
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Pay the PIPER?
May 21, 2009 at 8:47 p.m.
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Don't we get it? It's no one's fault for anything anymore -- a growing class of Americans are nothing if they are not all practiced (and willing) "victims"! Acceptance of responsibility is a rare quality unlikely to be found at most any level of citizenry, business or government.
A spoon-fed nation of dependency and UNEARNED entitlements, driven not by hunger and ambition but by consumerism and pop culture. Perhaps China and India will one day step up and pay the bills for for all our terminally disabled and (directly related) self esteem challenged burden. It's certain that the dwindling stock of working class Americans will never be able to afford to keep this teeming parasitic mass of pill-feed terminal dependents (literally) fat and (artificially) happy!
May 21, 2009 at 7:22 p.m.
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You all can call it whatever "ism" you wish, but my opinion is that unions outlived their usefulness decades ago! Sweatshops went by the wayside in the 60's / 70's for the most part.
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Unions kept their grip tight as companies became prosperous. However, we've now reaped what we sowed. A vicious cycle of bigger, better, faster, gas guzzling vehicles. And to hell with the emmisions, the cost of feul, etc. Now we have to reduce emmissions if our children want to be able to breathe in the future.
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Too little change, too late. Then add on the union's insistance that we just stay the course, and SOMEHOW it will work itself out. Things will NEVER be the same again. We must restructure our lives and expectations. Re-educate, rebuild, start over. These are the facts people.
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Retrain, rethink, reorganize your lives. This is our future. Pi$$, moan and groan all we want, this is reality!
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I found a great piece in the June Reader's Digest... "The Future of Work". It is worth the read.
May 21, 2009 at 6:58 p.m.
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People quit your complaining , the fact of the matter is America is running itself into the ground. With help fromour elected officials, that we vote for. So inturn we as a people are doing it to ourselves. Think about it
May 21, 2009 at 3:48 p.m.
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Well, gosh, capitalism was working so well everyone lost $5 trillion, localboy.
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This, however, is not socialism. The company was loaned money but remains privately owned (if you count a 1-for-100 split as still owning something). Or did you have some other definition of socialism in mind? Anyway, George Washington died before Karl Marx was born, so how could he have an opinion on socialism?
May 21, 2009 at 3:23 p.m.
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The new "socialist" America. George Washington is rolling over in his grave..and Karl Marx is laughing in his vault.
May 21, 2009 at 2:28 p.m.
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There was no mention in the statement of factory closures, production of vehicles outside the U.S., or cooties.
May 21, 2009 at 2:27 p.m.
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It couldn't actually be GM's fault for this epic fail could it?
Don't get me wrong, I like GM. Most of my family is/was supported by them, but it was only a matter of time before this happened.
May 21, 2009 at 2:05 p.m.
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using prez obamas middle name for anything other than legal purpose is equivilant to a 12 year old trying to scare someone by talkin about cooties. neither actually matter to anything or anyone but the 12 year old children using it.
May 21, 2009 at 1:45 p.m.
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Skiddz, his name is spelled "Hussein". And quit being racist by comparing our president to a middle-eastern terrorist. McCain lost. Get over it, will ya? We'll all always have something to complain about, regardless of who got elected.
May 21, 2009 at 12:27 p.m.
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I love how the left always had to YELL OUT where is the exit stratigy for Iraq back when Bush was in office. Now I yell WHERE IS THE EXIT STRATIGY to Mr. Hussen Obama. HMM? When will we let these companys go again to only watch them all fall flat on their face like they were before Hussen picked them up. Oh wait, he doesn't want a exit stratigy. I think he is trying to get CEO of the year for automakers 2 years in a row. Good thing his wife said it for all of you. Atleast "this is the first time I can be proud of my country"
May 21, 2009 at 12:12 p.m.
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Just the words you want to hear: The UAW has reached a deal with the government! If you want to get to GM, you now must go through the government. GM, once the biggest company on the planet now being run by the actual biggest company on the planet....THE U.S. Government! This should make all American's very uncomfortable. If it doesn't, you're living in a cave. Slice it and dice it anyway you like, it's just another step towards socialism.
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