US auto unions make tentative deal with GM, Treasury

• Source: xinhua
• [10:37 May 25 2009]
• Comments

The United Auto Workers (UAW) union has reached a tentative deal with the US Treasury Department and General Motors Corp. on modifying a labor agreement and restructuring payments into a union-run health care trust, reports reaching here said on Thursday. 

The logo for United Auto Workers Local 22 union hall that represents General Motors assembly workers is seen in front of the union hall in Detroit, Michigan April 18, 2009. (Xinhua/Reuters Photo)

UAW local presidents and executives are expected to meet in Detroit on Tuesday with local ratification meetings scheduled for late next week, according to a Detroit News report.

A UAW deal is a key piece of GM's restructuring plan and attempt to avoid a Chapter 11 bankruptcy filing. If GM, now operating with 15.4 billion US dollars in federal aid, enters bankruptcy court, deals with the UAW and other stakeholders could help the automaker emerge within a few months.

The General Motors Pontiac Assembly plant is seen in Pontiac, Michigan April 26, 2009.(Xinhua/Reuters Photo)

The announcement comes after three days of meetings between the UAW, GM and the Treasury Department in Washington, D.C., aimed at reaching a comprehensive labor savings agreement ahead of a June 1government deadline.