GM health-care settlement divides former CAW workers

Not all happy with multi-billion-dollar trust negotiated in shadow of bankruptcy
By Danielle Harder
|Canadian Labour Reporter|Last Updated: 08/18/2011

A tentative settlement has been reached to create a health-care trust for General Motors retirees, though it’s not being greeted with unanimous support by former workers.

The creation of the trust to finance dental care, vision care and other benefits for retirees was demanded by the federal and Ontario governments in 2009 when General Motors Corp. sought a bailout to prevent its collapse.

The CAW agreed to negotiate the plan with GM agreeing to put up $1.8 billion to finance the fund. After two years of negotiations, the CAW says it has secured concessions and additional contributions from GM worth roughly $240 million.