UAW agrees to concessions to help save auto industry

Posted by Nick Dutton - email

WASHINGTON (AP) - The United Auto Workers union has agreed to new concessions aimed at saving jobs and helping U.S. automakers avoid a collapse of the industry.

A UAW official speaking on the condition of anonymity says the union has agreed to delay the companies' payments to a multibillion-dollar, union-run health care trust and scrap a jobs bank in which laid-off workers are paid most of their salaries.

The union also has agreed to restart contract talks with the Detroit Three to consider further givebacks.

General Motors, Ford and Chrysler leaders are seeking as much as $34 billion in emergency aid from Congress to stay afloat.

Chrysler vice chairman Jim Press cautions that a carmaker collapse could send the economy spiraling into a depression.

Source: The Associated Press