Monday, October 17, 2005

General Motors Corp. and the UAW have reached a
tentative agreement that will cut the health care costs
for hourly workers by $3 billion a year, the single largest
cost-cutting initiative ever announced by the company,
GM said on Monday.

The deal, subject to ratification by UAW members,
will slash GM's commitment to cover the health care
costs over the lifetime of its hourly workers by $15
billion, or 25%, GM Chief Executive Rick Wagoner
told employees in a broadcast.

The tentative deal, subject to a final agreement and
ratification vote by hourly workers, is projected to
reduce GM's retiree health care liabilities by about
$15 billion, or 25 percent of the company's hourly
health care liability, the automaker said.

GM, which lost more than $1.4 billion in the first half of
the year, posted a third-quarter loss of $1.6 billion,
or $2.89 a share.

All rights reserved.
Disclaimer And Comment Policy