The United Auto Workers union (UAW) ratified the latest round of cost-cutting concessions at GM by an overwhelming 74% Friday, hoping to make life easier as the company faces bankruptcy. The agreement cut some retiree benefits, and prevents unionized workers from mounting a strike between now and September 2015. It offers the retirees' health care fund a 20% equity in the restructured (post-bankruptcy) GM. The union further managed to bring down the number of factory closures and layoffs planned by convincing the company to keep some of the new subcompact car manufacturing slated for China, in the United States. Instead of 16 factories, GM will close 14, transitioning 2 to subcompact manufacturers, and saving over 1,000 jobs. The company now awaits Saturday, and the decisions of its bondholders.
See "UAW members easily ratify GM contract concessions", Nick Bunkley, The New York Times, May 28, 2009