GM sees 'minimal' financial impact from UAW deal

Reuters News
Posted: Sep 28, 2011 2:23 PM

DETROIT (Reuters) - General Motors Co expects its newly ratified contract with the United Auto Workers union will cost $215 million between 2011 and 2013, the U.S. automaker said in a slide presentation on Wednesday.

Detroit-based GM said in slides on the company's website that the UAW contract allows it to maintain its break-even point in North America and has a "minimal" impact on its profitability.

"The agreement is a win-win for our employees and our company," Chief Executive Daniel Akerson said.

"It underscores the alignment between the UAW and the new GM in our efforts to drive long-term success, and gives all of our employees a direct stake in the quality of our products and our performance," Akerson said in a separate statement.

GM said 39 percent of its hourly workers are eligible for retirement, including 34 percent of production workers and 58 percent of skilled trade workers.

GM expects a $90 million charge in the 2011 calendar year for buyouts for skilled trade workers, a category that includes pipe fitters and electricians.

GM shares were down 2.1 percent at $20.75 on Wednesday afternoon.

(Reporting by Ben Klayman and Deepa Seetharaman, editing by Matthew Lewis)