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Strike?! UAW Sets Deadline

11 a.m. EDT Monday is the date set by the UAW for a strike against GM if an agreement has not been reached. Supposedly most of the details have been worked out with the elephant in the room being the Voluntary Employees Beneficiary Association (VEBA) that GM is setting up as a trust fund for retiree health care. GM reportedly has around $51 billion in underfunded retiree health care costs but would only contribute around $30 billion or so to the VEBA. The exact amount and how that breaks down in cash and stock are under discussion, but for reference a deal done in July between parts maker Dana Corp. and the UAW and United Steel workers set up a VEBA trust with assets equaling 71% of the liabilities.

The existing contract came due on on September 14 and has been extended on an hour by hour basis. It would appear that the UAW is trying to turn the screws and get a more favorable outcome out of GM. We'll find out soon enough...