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Though we were just warned that new deals between General Motors and the major auto unions in the U.S. and Canada were unlikely to be completed by their May 27 deadline, word has begun spreading that a tentative agreement has been reached between GM and the United Auto Workers union. While there's no word yet on a deal having been reached between GM and the Canadian Auto Workers union, the major obstacle of convincing the UAW to accept equity in the company in exchange for cash payments to its retiree health care fund appears to have been overcome, pending an official announcement from both parties and a vote by the UAW rank-and-file membership.

Like the deal recently reached by the union and bankrupt Chrysler, the UAW would get a 38% stake of GM for the purposes of funding its VEBA retiree health care trust. Also like its deal with Chrysler, the UAW presumably would not have a controlling interest in GM and sell off its stake as soon as the company was viable.

If true, only two major obstacles remain to avoid a bankruptcy filing before GM's government-imposed June 1 deadline. The first is getting CAW to follow the UAW's lead and sign a new agreement, and the second is to get the majority of GM bondholders to accept a debt-for-equity swap that would erase $27 billion of the automaker's debt but leave creditors with only a 10% stake in the company. The UAW would have its proposed 38% stake, common GM shareholders would hold a 1% stake and the U.S. government would have a majority stake of 51%. Its creditors, however, do not appear willing to accept GM's debt-for-equity offer as it stands, so unless a miracle happens in the next two weeks, a Chrysler-like Chapter 11 bankruptcy filing still appears the most likely result.

[Source: CNN Money, Photo by Bill Pugliano/Getty]

BREAKING: GM and UAW reach tentative agreement over new contract, bankruptcy looms regardless originally appeared on Autoblog on Thu, 21 May 2009 13:58:00 EST. Please see our terms for use of feeds.

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Looking to further tighten up its hammerlock on General Motors, the UAW would reportedly like a seat on the automaker's board as a reward for helping it garner federal dollars. Marc McQuillen, president of UAW Local 2404 in Charlotte, North Carolina, has posted on his group's website that the suspension of the jobs bank and a two-year delay on automaker payments into the retiree healthcare fund are concessions enough for the UAW to seek a seat at the big table. We visited the website ourselves and couldn't find any such declaration, so it must have already been removed. While this particular local union has been shooting off its mouth in the Tarheel state, GM says it has not been asked for any such thing by the UAW itself. We think perhaps the brain should get back in touch with what its pinky toe is doing before trying taking over the world.

[Source: Detroit Free Press]

UAW local wants seat on GM board in exchange for concessions originally appeared on Autoblog on Tue, 09 Dec 2008 11:01:00 EST. Please see our terms for use of feeds.

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Let's get the hard numbers out of the way. Today General Motors revealed that excluding special items, it posted a net loss of $23 million in 2007. Add in some funky deferred tax asset charge, and the automaker's net loss last year rises to $38.3 billion. Aside from that, we're interested in how GM fared in the business of selling cars and trucks around the world last year. In 2007, the automaker earned $553 million before taxes selling vehicles globally, compared to losing $339 million in 2006. Worldwide vehicles sales increased 3% to 9.4 million vehicles last year, but the North American market was no help, losing $1.5 billion before taxes.

Numbers aside, GM also had some big news today in the form of new buyouts for its entire union workforce that's some 74,000 strong. Similar to the recent round of new buyouts offered by Ford and Chrysler to their union workers, the new arrangement is more generous to workers than what was offered back in 2006. GM hasn't said how many workers it will let go this time, but because of its new contract with the UAW, the automaker will be allowed to replace some of those workers with new hires at a reduced compensation rate of around $14/hour.

Follow the jump for nitty gritty details on both GM's posted loss for 2007 and the new UAW buyouts.

[Source: GM]

Continue reading GM announces 2007 loss and new buyouts for entire union workforce

GM announces 2007 loss and new buyouts for entire union workforce originally appeared on Autoblog on Tue, 12 Feb 2008 09:59:00 EST. Please see our terms for use of feeds.

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