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Book Reports
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| Number of pages / Number of words: |
4 / 911 |
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One billion was estimated in first quarter losses, with its enormous obligation to retirees. GM paid 5.2 billion to retirees and their dependents. The legacy cost burden will increase as more workers retire and the number of active employees continues to drop. Although cutting medical benefits for union retirees and its workers would save GM one billion a year, it will not be enough...
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If GM went after retiree benefits, this could spark a labor war. Despite all the tough talk, neither side wants to go to war. This would be devastating to all concerned. GM board gave the UAW a June deadline to come up with a deal. Getting big savings without touching retirees will be almost impossible...
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