Retired GM workers just lost $450 million in benefits
Wednesday, 11 Dec 2013
A federal judge said General Motors is not required to pay $450 million to cover medical benefits for retirees, in a defeat for the United Auto Workers union.
In a 36-page decision, U.S. District Judge Avern Cohn in Detroit said on Tuesday that the post-bankruptcy GM did not assume any obligation for the payment, which the automaker had contracted to make two years before its June 2009 Chapter 11 filing.
The payment had been part of a June 2007 contract between the old GM, its former Delphi Corp affiliate and the UAW.