The UAW and Ford Motor Co. reached an agreement to cut billions of dollars in cash obligations to a healthcare fund for retirees. The deal permits Ford to make about half of its required payments to the fund in equity rather than cash. Ford said that reducing its obligations to the fund, known as the voluntary employees' beneficiary association, will help to make it more competitive in the global market. It is possible that this agreement could be replicated in UAW deals with GM and Chrysler as well. Both of those firms are facing government mandated restructuring already as a condition of federal aid.
See "Ford reaches deal with UAW on retiree healthcare", Ken Bensinger, Los Angeles Times, February 23, 2009