Although unconfirmed by General Motors, numerous reports indicate that the United Auto Workers’ retiree health care trust fund would take a 17.5 percent stake in the automaker after it completes its restructuring. Union officials were apparently told of agreement which would see about $10 billion in GM assets placed into the fund.
That’s significantly down from the 39 percent UAW share that had been previously reported. The restructured automaker is still expected to be controlled by the United States Treasury, however.
The Wall Street Journal says that the UAW’s Voluntary Employee Beneficiary Association, which is owed about $20 billion by GM to cover future health care costs of union retirees and their families. The UAW would also get $2.5 billion from GM to be paid in three installments in 2013, 2015 and 2017.
