UAW abandons talks with GM; slows negotiations with Chrysler

With three days to go for the troubled automakers to submit their viability plans to the government, the United Auto Workers (UAW) abandoned its negotiations with General Motors over the retiree healthcare costs' issue.

Union representatives stormed out of talks with GM in a disagreement about financial support for a union-administered trust, which will be responsible for looking after retiree health care costs next year.

According to sources close to the UAW delegates, the walk out resulted from certain demands by GM, which the UAW felt were "detrimental to retirees and the ability to provide health care."

On the other hand, UAW's talks with Chrysler, though still continuing, appeared to be passing through a rather peculiar phase, with hardly any progress reportedly been made.

However, the talks between UAW and Ford, the most robust of the three Detroit automakers, are being reported to have caught pace.

Both GM and Chrysler, with the February 17 deadline staring in their faces, need to prove their viability - according to a condition of the $17.4 billion federal bailout they received last month. The terms also include reduction in labor costs as well as debts to a UAW-affiliated fund.

Without commenting on their negotiations with UAW, GM and Chrysler have both reiterated their respective commitments to meet the conditions of the federal bailout.

 

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