voa economic report - GM Deal on Health Costs Signals Change for US Auto Industry

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is the VOA Special English Economics Report. Labor relations the American auto industry took a new turn this with a deal that many are calling historic. General and the United Auto Workers agreed on a proposed contract after a strike that lasted two days. Seventy-three union workers walked off the job. Job security was top issue for union members. The UAW... is seeking protect jobs in the United States and limit the of temporary workers used by General Motors. For GM.., main issue was to find a way to cut costs for health care for retired workers. The nation's automaker estimates its long-term responsibilities at more than fifty dollars. Under the agreement, GM.. would create a trust a volunteer employee benefit association. This VEBA would pay care costs for retirees. GM.. is expected to invest thirty-five billion dollars to start the fund. The fund be independently administered and the union would supervise it. Auto Workers President Ron Gettelfinger said the fund should benefits for retirees for the next eighty years. GM.. seen its share of the North American market shrink its labor costs have remained far above its biggest , Toyota. The deal would give GM.. the right to pay for some new employees. The agreement is likely provide an example for coming talks with the two major American automakers, Ford and Chrysler. The new contract needs final approval by the union. Until then the details are not being released. The union expects its to begin voting this weekend. The trust would also approval by the courts and the Securities and Exchange . The process is expected to take two years. After , GM.. would no longer have to pay for health for its retirees. Chief Executive Rick Wagoner said the will help his company become more competitive. This, he , will permit GM.. to keep a strong manufacturing presence the United States and make future investments. This was first nationwide strike against GM.. since nineteen seventy. The contract ended at midnight on September fourteenth. Union members working until their leaders called the strike Monday morning. strike ended early Wednesday after negotiators reached the agreement. that's the VOA Special English Economics Report, written by Ritter. I'm Bob Doughty.

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