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Report: GM nears cost-cutting deal with UAW

Under the direction of the U.S. Treasury, General Motors is close to a deal with the United Auto Workers that would cut its hourly labor costs by more than $1 billion a year, the Wall Street Journal reported.
/ Source: Reuters

Under the direction of the U.S. Treasury, General Motors is close to a deal with the United Auto Workers that would cut its hourly labor costs by more than $1 billion a year, the Wall Street Journal reported.

Citing people familiar with the matter, the paper reported Friday that GM expects to halve its remaining cash outlays for retiree health costs to about $10 billion, and supplement that contribution with a 39 percent equity stake in the reorganized company.

GM has been in talks with the UAW on a new contract and new payment terms for the $20 billion it owes the union for retiree health care.

Reuters attempts to reach GM and UAW after normal business hours were unsuccessful.

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