Union concessions to GM deeper than initially thought

[Omaha Steve]

http://afp.google.com/article/ALeqM5g4GiX4zX12TCu-1J1L99EPhVdHkA

DETROIT, United States (AFP) — The United Auto Workers union has agreed to a two-tiered wage system and a switch to far-less generous pensions for new hires in exchange for job security promises in its landmark contract with General Motors Corp., the union said Friday.

The tentative agreement offers far more concessions than initially announced when a deal was reached early Wednesday.

It will serve as the framework for negotiations with Ford Motor Co. and Chrysler LLC and is expected to help the Big Three US automakers significantly narrow their labor cost gap with the non-unionized US plants run by foreign rivals.

UAW President Ron Gettelfinger said he expected to have the new agreement ratified by October 10.

"Our goal is transparency," Gettelfinger said. "Our members will have the opportunity to be exposed to all of the information about this proposed contract, so they can make an informed decision."

GM will spend between 35.3 and 36.9 billion dollars to transfer the administration of retiree health-care benefits to the union.

FULL story at link.