ARTICLE SUMMARY
A turning point for Detroit
Sep 27th 2007 | DETROIT AND LONDON
From The Economist print edition
http://www.economist.com/PrinterFriendly.cfm?story_id=9867832
This article contains the conclusions of long-term negotiations between the US car manufacturer General Motors and the UAW United Auto Workers unit, who striked for the first time in GM’s 37 year history.
A new four-year-contract which includes the establishment of a Voluntary Employee Beneficiary Association (VEBA) to pay for prospective retiree health care and modified wage rates is the mutually satisfactory result of the two day strike of 75,000 General Motors workers in Detroit which was initiated by UAW leader Ron Gettelfinger a few weeks ago.
Due to horrendous health expenses it recently became exceedingly difficult for GM to compete against Japanese rivals such as Toyota, whose employees are not unionised and hence cause much lower labour costs.......
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Approximate Word Count: 428
Approximate Pages: 2 (260 words per double-spaced page) |