UAW, GM make progress toward reaching a tentative deal

[Omaha Steve]

Source: Freep.com

By KATIE MERX

The UAW and General Motors Corp appear on track to iron out details of a tentative agreement this week after a breakthrough on the retiree health deal on which the next contract hinges, people familiar with the contract negotiations said today.

Those people said their expectations were based on the fact that bargaining accelerated throughout the weekend following the news Friday that the parties had reached a general framework for a retiree health-care trust – known as a voluntary employee beneficiary association, or VEBA.

“It’s not going to be too long now,” said David Cole, chairman of the Center for Automotive Research. “Basically what they have is a do-or-die deal. GM drew a line in the sand last week. … GM felt it had two options: do a VEBA deal and invest in the U.S., or no deal and disinvest rapidly.

“If GM were to disinvest, it would be a death knell for the union,” he said.

Read more: http://www.freep.com/apps/pbcs.dll/article?AID=/20070923/BUSINESS01/70923037/1002/BUSINESS