GM Cuts Deal with UAW to Trim Health Care Costs


Damn you, GM and UAW — was all that anklebiting just typical politicking? The New York Times is reporting today that — despite the union's recent bluster — the two entities have agreed on a plan to reduce GM's worker health care costs. Considering GM is reporting a $1.6 billion loss for the third quarter, the deal, which will trim its liability by $15 billion and reduce annual expenses by around $3 billion, couldn't have come at a better time for shareholders (hmm, interesting timing, by the way). No word yet on where the savings will come from. Next: Watch out for falling pensions... [Thanks to Joel for the tip.]

General Motors and Union Reach Agreement on Health Care Costs [The New York Times]

Related:
GM Bowls A Gutter Ball, Signs Deal with CAW [internal]