• May 19, 2009

GM and UAW may Finalize Restructuring Deal Soon

uaw and gmAccording to the Free Press report, talks between UAW and GM are heating up and there is hope that the deal between these two will soon be finalized.

The bond exchange from GM is also coming near as 26th of May is a deadline for it, the automaker will have to successfully restructure its debt by June without going into court otherwise it will have to bear bankruptcy.

However, the offer has been criticized by the bondholders.
A source that is aware with the talks between GM and UAW reports that things seem to go in the right direction.

One basic issue that has publicly emerged is that UAW has shown concerns over GM plan to import vehicles from different countries including Mexico and China. In an email, the union stressed members to contact the White House to urge GM to keep a maximum number of jobs in the country.

Local union leaders of UAW have told the members to bring the contract changes in the Detroit for reviewing contract changes in them before ratifying any deal to make changes in it.

These changes in the contract will help GM to save more than $1b through contracts. UAW and GM spokesperson declined to comment on ongoing deal between the two companies.

The UAW is trying to put pressure on GM for their proposed plans of shutting down facilities in US and the company is moving towards the tense contract negotiations with the company.

Source: Freep

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