Ruling Frees General Motors Of $450M Obligation To UAW
The 6th U.S. Circuit Court of Appeals ruled Thursday General Motors will not owe $450 million to the UAW for funding health care among Delphi retirees.
The ruling affects a stipulation in the contract signed by “Old GM,” Delphi and the union in 2007, where the automaker would make a one-time contribution of $450 million, Detroit Free Press reports. Said stipulation remained in a revised 2008 agreement, but would not be included in a new contract when GM emerged from bankruptcy in 2009.
However, the UAW sought to hold GM to its obligation, suing the company in April of 2010 after the “new” version of the company refused to pay the contribution.
While a spokesman for the automaker said it was “pleased with the outcome of the case,” the union remains silent as to whether it will appeal the ruling before the U.S. Supreme Court.
[Photo credit: Delphi/ Facebook]
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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I clicked on this article, scrolled down and braced myself for what I usually see when "GM" and "UAW" are in the headline. I was pleasantly surprised. Yet another reason why TTAC >>>>>>>>>>>>>
It's worth remembering that the autoworkers were first offered healthcare by GM management in 1950. Walter Reuther, then leading the UAW prophesized that it would eventually bankrupt the companies. GM, along with other manufacturers, was fighting the idea of a national health plan and averted it via promises to pay money which wasn't accounted for until retirement. Pretty piss-poor management decision.
I can't stand the UAW, but I disagree with this ruling, especially after UAW compromised in the attempt to keep the old GM going. I doubt they'll warm up to compromising any time soon in the future, however failing to do so may cost them jobs. I've always had a moral dilimna with corporate bankruptcy. The top dogs rarely if ever are affected like the rest of the company, and often they can just go set up another corporation. How many times has Donald Trump screwed over his debtors?
Total nonsense. The UAW compromised on several issues with GM. GM on the other hand never had any intentions of meeting their end of the bargin. Remind me again of how much money Rick Wagoner walked away with ? 10 million and 74k per year for life plus other bennies. Bet he is still getting paid.