GM Strikes Deal, Union Ends Strike

Labor & Employment

General Motors workers return to work today after the auto maker agreed to a new labor contract with the United Auto Workers union. The deal ends a two-day strike but questions remain just how much the deal will save GM.

Shares of GM rose $2.76, or 8.0%, to $37.18, after the company agreed to a tentative contract with the UAW. The UAW represents approximately 74,000 GM employees. The contract ends a national strike that began Monday and crippled GM's production.

The deal sets up a health care trust to pay for retiree healthcare benefits. GM will front the money for the trust while the UAW will run it. GM hopes the trust will help it close a $25-per-hour labor gap with foreign auto makers.

"This agreement helps us close the fundamental competitive gaps that exist in our business," said GM Chief Executive Rick Wagoner. "The projected competitive improvements in this agreement will allow us to maintain a strong manufacturing presence in the United States along with significant future investments."

But former Forbes senior editor Jerry Flint says that the health care trust won't reduce any costs. He explains the health care bill remains the same whether the UAW or GM is in charge. "A health care trust, if it happens, may look good today, but one day it will come back to haunt GM," says Flint.

The deal must now be approved by the rank-and-file union membership. The Securities and Exchange Commission must also review the contract.

Related listings

  • Auto workers set strike deadline in talks with GM

    Auto workers set strike deadline in talks with GM

    Labor & Employment 09/24/2007

    [##_1L|1370495228.jpg|width="100" height="135" alt=""|_##]Bargainers for the United Automobile Workers union and General Motors worked through the night in an effort to reach a settlement in contentious contract talks, facing an 11 a.m. Eastern time ...

  • High court limits union use of nonmember fees

    High court limits union use of nonmember fees

    Labor & Employment 06/14/2007

    [##_1L|1232595256.jpg|width="131" height="91" alt=""|_##]The Supreme Court on Thursday unanimously upheld a Washington state law that restricts how labor unions can use fees collected from nonmembers for political purposes. The high court ruled the r...

  • Labor organization asks NC to repeal bargaining ban

    Labor organization asks NC to repeal bargaining ban

    Labor & Employment 04/04/2007

    The state of North Carolina is violating international freedom of association labor standards by prohibiting governmental entities from bargaining with unions, according to a decision released Tuesday by the International Labor Organization (ILO), th...

Is Now the Time to Really Call a Special Education Lawyer?

IDEA, FAPE, CHILD FIND and IEPs: The Individuals with Disabilities Education Act (IDEA) guarantees all children with disabilities to a free appropriate public education (FAPE). FAPE starts with a school’s responsibility to identify that a child has a disability (Child Find) and create an Individualized Education Program (IEP) to suit the needs of the child.

Forte Law Group is one of only a very few law firms within the state of Connecticut that is dedicated to exclusively representing families and children with special needs.

Parents need to be persistent, dedicated and above all else aware of the many services and accommodations that their child is entitled to under the law. As early as this point within your child’s special education, many parents will often find themselves in the situation asking, “is now the time to really call a special education lawyer?” Here are a few things to consider when asking yourself that question.

Business News

St Peters, MO Professional License Attorney Attorney John Lynch has been the go-to choice for many professionals facing administrative sanction. >> read