Apr 8 2010
The Associated Press: "The United Auto Workers union has sued General Motors Corp., saying the automaker owes it $450 million for retiree health care" (4/7).
The Detroit Free Press: "[T]he UAW contends that GM was obligated through a labor contract and the bankruptcies of both GM and [its former parts division] Delphi to pay $450 million intended for the UAW's Voluntary Employee Beneficiary Association for Delphi workers. That trust, called a VEBA, is to provide for retiree health care. In its lawsuit, the UAW said GM in November rejected the UAW's written request for payment into the Delphi VEBA. Since then, GM 'has failed and refused to make the contractually required payment,' the union said in the filing. GM spokesman Tom Wilkinson declined to comment on the lawsuit Tuesday evening" (Gopwani, 4/7).
This article was reprinted from khn.org with permission from the Henry J. Kaiser Family Foundation. Kaiser Health News, an editorially independent news service, is a program of the Kaiser Family Foundation, a nonpartisan health care policy research organization unaffiliated with Kaiser Permanente. |