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Sectors: Automotive and Transport Equipment
Effective Date: January 01, 2007
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Exhibit 10.3 2007 GM-UAW Labor Agreement

Forward Looking Statements 1 In the presentations and in related comments by General Motors' management, we will use words like "expect," "anticipate," "estimate," "intend," "evaluate," "seek," "believe," "potential," "design," "impact," "projection," or "pro-forma" to identify forward-looking statements that represent our current judgments about possible future events. We believe these judgments are reasonable, but GM's actual results may differ materially due to a variety of important factors. Among other items, such factors include: the ability of GM to achieve reductions in costs as a result of the turnaround restructuring and health care cost reductions and to implement capital expenditures at levels and times planned by management; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; costs and risks associated with litigation; changes in our accounting principles, or their application or interpretation, and our ability to make estimates and the assumptions underlying the estimates; the successful completion of collective bargaining agreements with all unions that represent GM employees/retirees and the legal interpretations of those agreements; labor strikes or work stoppages at GM; and general economic conditions, in particular health care costs and investment returns. GM's most recent annual reports on Form 10-K and quarterly reports on Form 10-Q provide information about these factors, which may be revised or supplemented in future reports to the SEC on those forms.

Agenda 2007 Agreement Overview Retiree Health Care / VEBA Trust Two-Tier Wage Structure Other Operating Changes Financial Summary 2

2007 Agreement Key Outcomes Competitiveness Enables appropriate employment levels and introduces wage and benefit structures that support efforts to close manufacturing cost gap Flexibility Mechanisms to help deploy labor force where required Improved ability to adjust workforce to reflect market conditions VEBA funding structured to allow contribution payments over time Commitment Retiree health care benefits funded for current UAW hourly employees and retirees while largely eliminating health care inflation risk from capital structure Continue product and technology investment in the U.S. 3

2007 Agreement Key Elements Independent VEBA Trust established for retiree health care obligations Two-tier wage agreement established for non-core employees and new hires Agreed to hire 2,800 temporary workers as permanent Job security provisions revised No base wage increases, lump sums granted instead Reduced COLA escalation Upfront agreement on product and sourcing plan Increased pension benefits for current and future retirees 4

Agenda 2007 Agreement Overview Retiree Health Care / Independent VEBA Two-Tier Wage Structure Other Operating Changes Financial Summary 5

2005 Retiree Health Care Agreement In October 2005, announced GM-UAW Retiree Health Care Agreement, which modified postretirement health care benefits for UAW hourly retirees and actives Agreement effective through September 2011 Introduced for the first time employee monthly contributions, deductibles and co-pays, as well as prescription drug and dental coverage changes A UAW-sponsored Mitigation VEBA was established to help defray out-of-pocket cost impact to retirees and completely fund retiree dental benefits GM agreed to make three $1B contributions in 2006, 2007 and 2011 UAW agreed to defer future wage increases and a portion of future COLA payments to Mitigation VEBA Agreed to additional stock appreciation rights and profit sharing diversions Agreement implemented in March 2006 upon district court approval Based on final remeasurements related to plan changes, agreement yielded gross $17B reduction in GM OPEB liability 6

2007 Retiree Health Care Overview GM and UAW agree that responsibility for retiree health care will permanently shift from GM to a new retiree plan funded by a new Independent VEBA Incorporates 2005 Health Care Agreement and is subject to court approval Implementation will be later of January 1, 2010 or date on which any appeals or challenges to court approval are exhausted Agreement ensures UAW may not negotiate to increase GM funding or otherwise seek to obligate GM to: Provide any additional contributions to the Independent VEBA Make any other payments for the purpose of providing retiree medical benefits Provide retiree medical benefits through any other means Employees may in future contribute earnings that they received from wages, profit sharing, COLA, or signing bonuses 7

Independent VEBA Summary New retiree health care agreement and VEBA will cover: All retirees as of 9/14/2007 Active UAW-represented employees with seniority as of 9/14/2007 UAW Delphi retirees and actives covered under GM-UAW-Delphi restructuring plan (approximately 12k people) UAW retirees and actives of closed or divested GM-UAW business units (to the extent GM has responsibility for their health care) New hires not included in Independent VEBA and not offered defined benefit postretirement health care GM and UAW agreed on funding Independent VEBA based on various key assumptions Asset returns of 9% annually, with risk borne by VEBA Ultimate health care trend rate of 5% annually, with risk borne by VEBA Incorporation of 2005 Health Care Agreement wage/COLA diversions Standard actuarial assumptions 8

UAW-Related Health Care Obligations Addresses UAW-related retiree health care obligations totaling $46.7B UAW-related obligations estimated at $47B at mid-year for purpose of negotiations when adjusted for updated Delphi impact ($3B increase) and assumed discount rate increase Actuals will be determined at year-end under SFAS 158 9 * Impact of adopting year-end measurement dates for all pension/OPEB plans at 12/31/06, implemented by GM in Q1 '07

Treatment of 2005 Health Care Agreement 10 Upon effective date, new Independent VEBA deal supersedes 2005 agreement GM remains obligated to make final $1B Mitigation VEBA payment from 2005 agreement in 2011 Profit sharing from the 2005 OPEB agreement eliminated Capped upside potential from the stock price increase granted in 2005 OPEB agreement 2005 Health Care Agreement wage/COLA diversions were calculated and negotiated at $3.8B present value This amount included in funding for new Independent VEBA Wage/COLA diversions retained by company

Independent VEBA Funding 11 Note: All present values calculated at 9% investment rate Note: All present values calculated at 9% investment rate

Independent VEBA Timeline 1/1/08 1/1/09 1/1/10 1/1/11 Internal UAW VEBA / Temp. Asset Account to be Established 1/1/08 ($18.5B + $4.4B Convertible Note) Initial Effective Date Est. Q4 ($5.6B With Option To Pay Over Time) First Contingent Payment 4/1/08 ($165M) Continue Retiree HC Cash Payments (Est. 1/1/10) Final $1.0B Payment From
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