WNED-AM 970 NEWS, September 26, 2007, Wednesday

WNED-AM 970 NEWS
September 26, 2007, Wednesday
Deal Reached; GM Employees Back to Work


BUFFALO (2007-09-26) After two days on the picket line, employees at GM's Powertrain Plant in the Town of Tonawanda are going back to work.

The United Auto Workers nationwide strike against the automaker came to end early this morning. The UAW announced just after 3:00 AM that a tentative deal has been reached with GM.

One of the stumbling blocks that led to the strike was over healthcare costs. Union officials are being tight lipped for now, but according to the Associated Press, the agreement shifts GM's retiree healthcare burden to the UAW through a company funded trust.

Cornell University's Director of Labor Studies Arthur Wheaton says that should be good news for GM's workers.

"Now you don't have to worry about a General Motors bankruptcy or anything else to impact that, because it's kind of a promisary note," said Wheaton.

The deal reached between the UAW and GM also reportedly includes a lump-sum payment and bonuses for workers.

The tentative contract must still be approved by local UAW presidents and voted on by the rank and file, including the nearly 1,500 at GM's plant on River Road.