Bankruptcy court won’t block UAW’s $450M GM suit

by News on August 29, 2011

in Pensions, Union Politics and Transparency

By David Shepardson/The Detroit News

A federal bankruptcy judge won’t dismiss a lawsuit filed by the United Auto Workers against General Motors Co. seeking $450 million in payments to a retiree health care trust fund.

In April 2010, the UAW sued GM in Detroit, contending that the Detroit automaker was obligated to make a $450 million contribution to a health care trust fund under a June 2007 agreement.

GM asked U.S. Bankruptcy Judge Robert Gerber to hear the case. He declined to intervene — and instead ruled the U.S. District Court in Detroit can hear the lawsuit.

From The Detroit News:’t-block-UAW’s-$450M-GM-suit#ixzz1WRruqdDx

{ 1 comment… read it below or add one }

Spencer Hale August 31, 2011 at 5:17 pm

I think that restructuring through bankruptcy could be a really good thing for the company. Bailouts aren’t going to help in the long run.


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