GM and UAW support pensions bill

[Omaha Steve]

Full story: http://money.excite.com/ht/nw/bus/20060730/hle_bus-n30213282.html



GM and UAW support pensions bill

Sunday July 30, 10:33 AM EDT

By John Crawley

WASHINGTON (Reuters) - Final pension reform legislation headed for a vote in the U.S. Senate this week not only will help bankrupt airlines save their traditional retirement plans, but also is supported by General Motors Corp. (GM) and the United Auto Workers.

"We look forward to seeing legislation pass that is balanced, protects employee pensions and allows companies to calculate with reasonable certainty future contributions," GM spokesman Greg Martin said.

GM has sent a letter to House and Senate lawmakers supporting the first major change in corporate pension funding rules in 30 years.

The major auto industry union said it, too, backed the proposal.

"This pension legislation will strengthen the funding of pension plans," said Alan Reuther, legislative director of the UAW. ""At the same time it avoids dangerous proposals that would have negatively impacted employers, workers and retirees."

The bill was approved by the House of Representatives late on Friday night after months of negotiations that turned unusually fractious last week. The Senate will take up the issue this week but its fate is uncertain due to wrangling over unrelated tax provisions.

GM is shrinking as part of painful North American restructurings to stem huge losses brought on by steep declines in marketshare and rising costs.

The business changes include plant closings and losses of more than 30,000 factory jobs.