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GM proposes 401(k)-style plan

General Motors Corp would give new union members 401(k)-style retirement plans instead of traditional pensions for the first time under a proposed United Auto Workers contract, Bloomberg News said on its Web site, citing people with knowledge of the talks.
/ Source: Reuters

General Motors Corp would give new union members 401(k)-style retirement plans instead of traditional pensions for the first time under a proposed United Auto Workers contract, Bloomberg News said on its Web site, citing people with knowledge of the talks.

GM also has proposed freezing cost-of-living raises to help pay for a union-run fund that would take responsibility for retiree health care, the report said.

After breaking off talks at around 9 p.m on Tuesday, GM and UAW negotiators were prepared to return to the bargaining table on Wednesday morning, a person familiar with the talks said.

Spokespeople for GM and UAW were not immediately available for comment.