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UAW health care trust will own 17.5 percent of GM

Posted Tuesday, May 26, 2009, 2:57 pm in Employee News

The United Auto Workers union trust fund that takes over responsibility for retiree health care will get just 17.5 percent of General Motors Corp. stock, officials said today, the Detroit News reported.

The UAW stock deal is part of a concessions package that the union drafted with GM. Union leaders were expected to vote on the pact Tuesday, with rank-and-file members voting Wednesday and Thursday, the paper said.

While details of the agreement have not been made public, the UAW deal also will mean wage cuts and benefit cuts for hourly retirees, people briefed on the deal said Tuesday, the News said. Under a proposed deal announced earlier this month, the U.S. Treasury and UAW, together, are to own 89 percent of GM’s stock, with 10 percent allocated to bondholders who hold $27.2 billion in bonds. Existing shareholders would get the remaining 1 percent, the story said.
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