UAW Trust To Get 17.5% Of GM Shares

United Auto Workers President Ron Gettelfinger, at a news conference at UAW Solidarity House to announce a tentative contract with General Motors was reached in Detroit just after 3 a.m. on Sept. 26, 2007, ending a two-day-long strike. (AP Photo/Carlos Osorio) AP

General Motors Corp. will give the United Auto Workers union 17.5 percent of its common stock, $6.5 billion of preferred shares and a $2.5 billion note to fund a trust that will take over retiree health care costs starting next year.

The funding for the trust was outlined in a summary of concessions that the company and union have agreed to as GM tries to restructure outside of bankruptcy. Plant-level union officials met in Detroit on Tuesday to get briefed on the agreement, and The Associated Press obtained a summary of the concessions.

The summary says most of GM's 61,000 hourly workers will get another buyout and early retirement offer, this one sweeter than the most recent one.

Production workers will be offered $20,000 plus a $25,000 car voucher for early retirement, while skilled trades workers will get $45,000 plus the car voucher.

Buyout packages include $115,000 and the car voucher for employees with 20 or more years of service. Those with less than 10 years would get $45,000 and the car voucher to leave the company.

The summary also says GM will take back five facilities from Delphi Corp., its former parts arm now in bankruptcy protection.

GM will take ownership of Delphi Saginaw Steering in Saginaw, Michigan; Delphi Thermal Systems in Lockport, New York; Delphi Powertrain in Rochester, New York; Delphi Powertrain Systems facilities in Rochester, New York, and Grand Rapids, Michigan; and Delphi Electronics and Safety in Kokomo, Indiana.
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