GM, UAW Reveal Details of Agreement for Health-Care Cuts

GM Retirees may have to unfix some of their fixed incomes to pay up to $752 each year for health care if a cost-cutting agreement between GM and the United Auto Workers is ratified by UAW workers next week. Hourly workers would defer $1 per hour in future raises and pay more for prescription drugs. All in all, the deal is expected to save GM 3 billion a year before taxes, an amount analysts estimate will translate into a reduction in cash outflow by $1 billion. Reaction from workers, who blame GM management for the General's sagging fortunes, is mixed so it's difficult to judge whether the agreement will be ratified. Even if it does, it's just angels behind the wheel of a nanocar, compared to what the company needs to survive.

GM workers lose pay for health care [The Detroit News]

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