UAW, Ford reach agreement on VEBA

[Bozita]

Source: Detroit Free Press

UAW, Ford reach agreement on VEBA
BY BRENT SNAVELY • FREE PRESS BUSINESS WRITER • FEBRUARY 23, 2009


The UAW said today it has reached a tentative agreement with Ford Motor Co. to modify the payment requirements for a retiree health care trust fund, and is likely to use the agreement as a template for talks with General Motors Corp. and Chrysler.

Ford said the tentative agreement gives it the option to use stock for up to 50% of its payments to fund the Voluntary Employee Beneficiary Association, or VEBA.

“We will consider each payment when it is due and use our discretion in determining whether cash or stock makes sense at the time, balancing our liquidity needs and preserving shareholder value,” Joe Hinrichs, Ford’s group vice president, of global manufacturing and labor affairs said in a statement.

The agreement also requires Ford to pursue restructuring actions with other stakeholders. Ford has previously defined stakeholders to include bondholders, employees, suppliers and dealers.

Read more: http://www.freep.com/article/20090223/BUSINESS01/90223018/UAW++Ford+reach+agreement+on+VEBA