The 6th U.S. Circuit Court of Appeals ruled Thursday General Motors will not owe $450 million to the UAW for funding health care among Delphi retirees.
The ruling affects a stipulation in the contract signed by “Old GM,” Delphi and the union in 2007, where the automaker would make a one-time contribution of $450 million, Detroit Free Press reports. Said stipulation remained in a revised 2008 agreement, but would not be included in a new contract when GM emerged from bankruptcy in 2009.
However, the UAW sought to hold GM to its obligation, suing the company in April of 2010 after the “new” version of the company refused to pay the contribution.
While a spokesman for the automaker said it was “pleased with the outcome of the case,” the union remains silent as to whether it will appeal the ruling before the U.S. Supreme Court.
[Photo credit: Delphi/Facebook]
The post Ruling Frees General Motors Of $450M Obligation To UAW appeared first on The Truth About Cars.
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