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GM labor deal would cut retiree health benefits immediately

Reuters/USA Today, May 27, 2009

GM's new cost-cutting labor agreement with the United Auto Workers will go to a union vote. The UAW, in documents prepared for its members, said some of the changes in the retiree healthcare trust and other benefits were insisted upon by the federal government as conditions for additional support for GM. Under the agreement, the UAW-aligned healthcare trust—the Voluntary Employees Beneficiary Association—will receive half of the $20 billion debt GM owes the fund in stock and new debt, instead of cash.