Is the UAW calling GM's bluff?

The United Auto Workers union has hired several outside
advisers to evaluate the financial and economic health of General Motors. GM and the UAW have been in talks over
healthcare and post-retirement benefits for some time, and the UAW had indicated that it wished to review the financial
health of GM on its own before it would discuss with GM many of the cutbacks in benefits that were requested. Not long
ago, GM was attempting to force these changes with a so-called ‘deadline’, but as the deadline approached GM’s board
dropped the demands. Talks are still on going to address the healthcare and other benefits that GM has claimed is
making them lose money. The investment bank Lazard Ltd and financial advisors Leon Potok & Company have already
been working the UAW for a few weeks. We’re interested to see what they find out. Obviously, GM has problems, but what
remains to be seen is how bad those problems really are.

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