According to the Associated Press, the UAW sued GM on Tuesday in federal court, contending that GM agreed in June 2007 to pay $450 million to settle a claim against GM's former parts supplier, Delphi Corp., as it emerged from bankruptcy.
The lawsuit explains the UAW believes GM is obligated to make a $450 million payment to the UAW's pension fund, VEBA, even following the bankruptcies by both GM and Delphi Corp., according to the Detroit Free Press. The lawsuit goes on to explain that GM rejected a written request by the UAW for the payment in October 2009, which according to the UAW, breaks their contract.
The $450 million payment was originally intended to settle a claim from the UAW against Delphi Corp., as a result of Delphi emerging from bankruptcy and lowering wages to levels that it said were comparable to other parts factories, says the Star Tribune.
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