Wednesday, September 19, 2007
(GM.N) would give new union members 401(k)-style retirement plans instead of traditional pensions for the first time under a proposed contract, Bloomberg News said on its Web site, citing people with knowledge of the talks.
GM also has proposed freezing cost-of-living raises to help pay for a union-run fund that would take responsibility for retiree health care, the report said.
After breaking off talks at around 9 p.m on Tuesday, GM and UAW negotiators were prepared to return to the bargaining table on Wednesday morning, a person familiar with the talks said.
The move from a defined benefit plan to a defined contribution plan would certainly be consistent with the larger movement in this country to consumer-driven benefit plans. It is also interesting that the company is proposing to tie wage concessions to the proposed VEBA plan.
Hat Tip: Dennis Nolan