Wednesday, February 18, 2009

Tentative Concessions Deal Between Detroit 3 and UAW - No Word on Legal Services
Chrysler and GM Viability Plans Handed off to Government

Yesterday, as expected, GM and Chrysler presented to the federal government their plans to become viable by 2012. Both companies require billions in additional government aid. Chrysler's plan includes an implied threat of immediate liquidation if the funds are not received.

Separately, the UAW announced that it has negotiated a concessions agreement modifying its 2007 contracts with Chrysler, Ford and General Motors. The parties were largely silent on the terms with a few exceptions. The base wage rate was not modified. The jobs bank is no more. There is no agreement on the retiree health care Veba. The last point really is a signal that this is more an agreement to announce there is an agreement rather than a true agreement.

More as things develop.

1 comment:

  1. Anonymous11:11 PM


    I'm a UAW staff attorney in Michigan. Do you have any insight when the last sticking point in the UAW/Auto negotiations will be finalized and how long after that will the UAW membership will be notified so they can vote. Some should leak someting about our Plan by then. We need a mole.

    Mike K


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