UAW sues General Motors

STAFF/Wire reports


The United Auto Workers union has sued General Motors Corp., saying the automaker owes it $450 million for retiree health care.

In the lawsuit filed Tuesday in federal court in Detroit, the UAW said that in 2007, GM agreed to pay $450 million to settle a UAW claim against auto supplier Delphi Corp. as part of Delphi’s emergence from bankruptcy protection. Delphi is GM’s former parts division.

The UAW said the agreement should still be in effect even though GM went through its own bankruptcy reorganization last year. The UAW said it demanded the payment from GM on Oct. 29.

According to court documents, GM responded with a letter rejecting the union’s demand.

The UAW says the money should go to a union-run retiree health-care fund.

The lawsuit highlights the difficulties the Delphi retirees have encountered in trying to secure their pensions, U.S. Rep. Tim Ryan of Niles, D-17th, said in a statement.

“This lawsuit, paired with pension-plan shortages, underscores the degree of financial difficulty faced by American workers and General Motors and complicates the situation faced by Delphi union and salaried retirees,” Ryan said.

Copyright 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

SEE ALSO: GM posts loss.

Don't Miss a Story

Sign up for our newsletter to receive daily news directly in your inbox.