GM Working Toward Feb. 17 Deadline On Labor Deal

[Omaha Steve]

http://money.cnn.com/news/newsfeeds/articles/djf500/200901071725DOWJONESDJONLINE000927_FORTUNE5.htm

January 07, 2009: 05:25 PM ET

DETROIT -(Dow Jones)- General Motors Corp. (GM) said Wednesday it needs to have key elements of a cost-cutting labor deal with the United Auto Workers in place by Feb. 17 to comply with last month's $17.4 billion federal bailout.

GM and Chrysler LLC are required to get their labor costs in line with the U.S. operations of foreign-based competitors under terms of the low-interest loans from the Bush administration to avoid bankruptcy. Ford Motor Co. (F) didn't ask for funding but is expected to push for the same concessions granted to its rivals.

The deadline gives Detroit's auto makers and the union less than six weeks to negotiate changes to the four-year labor agreement reached in 2007 after short strikes against GM and Chrysler.

While the loan deal gives GM and Chrysler until March 31 to finalize changes to the labor contract and get them approved by UAW members, the companies are required to present key elements on Feb. 17.

GM spokesman Tony Sapienza said under the deal the companies at that time must present plans to alter worker severance pay, compensation and work rules that govern the factory floor.

"We are working toward meeting that deadline," he said Wednesday.

FULL story at link.

[LiberalFighter]

1. The companies can make the payments half in cash and half in stock

to the union's retiree medical benefits.

Why would they agree to that? I sure as hell wouldn't accept half of my pay in GM stock.

Anyone that says they should accept that should be required to accept half their pay in GM stock.