The United Auto Workers (UAW) union filed a lawsuit for $450 million against General Motors Inc. (GM) yesterday. According to the UAW, GM failed to fund a voluntary employee beneficiary association, as it had contracted to do. The association should have benefited employees at a parts supplier of the Delphi Corp. (owned by GM). The agreement in question was made in 2007 and approved during Delphi's bankruptcy process in 2009. A UAW spokesperson says that the bankruptcy does not mean that the company can ignore a promise of nearly half a billion dollars. The UAW has twice tried to petition GM for the money, once in October and once in November, but claim that they were rejected and then ignored at both attempts. General Motors has so far remained silent on the matter.
See "GM Sued by UAW for $450 Million Over Delphi Fund", Margaret Cronin Fisk, Business Week, April 6, 2010