Once again, General Motors has found itself in hot water with the United Auto Workers. Way back when in 2007, GM signed a deal with Delphi to provide a total of $450 million for the UAW's Voluntary Employee Beneficiary – a trust set up to provide for retiree benefits, especially health care. So far, GM hasn't been willing to hand over the dough, and the UAW has decided to take The General to court over the issue.
The Detroit Free Press is reporting that the lawsuit claims GM denied the UAW its cash when the union asked for it last November and has refused to make payments ever since. As part of the automaker's bankruptcy filings last year, the company assumed all of its contracts with the UAW, including this one.

Delphi has been feeling the pinch of the economic slowdown in a big way, and found itself in bankruptcy court in 2005. When that happened, the company asked for concessions from the UAW, and managed to negotiate a pay cut of up to $10 per hour as part of the deal. GM has since snapped up four Delphi divisions during 2009, and word has it the automaker is seeking even further concessions from the union.

So far, GM hasn't said word one about the lawsuit.

[Source: Detroit Free Press]

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