From Automotive News:
THE AUTO INDUSTRY BAILOUT
UAW reaches new agreements with Detroit 3
Debt-for-equity negotiations continue
By David Barkholz
DETROIT -- The UAW today reached tentative agreements with the Detroit 3 on concessions to help the automakers weather the recession.
But the thorny issue of swapping debt owed to retiree health-care funds for company stock remains unresolved.
General Motors and Chrysler LLC were seeking concessions as part of their viability plans for federal bailout money. Ford Motor Co. is not seeking bailout money but wanted parity with Chrysler and GM.
A source familiar with the talks said the concessions involve overtime, bonuses and limits on unemployment benefits.
But the UAW had not reached agreement on a proposed debt-for-equity swap with Chrysler and GM, a condition of federal aid to the automakers. The Bush administration, which loaned money to GM and Chrysler in December, wanted the UAW to take half of the remaining money owed to its Voluntary Employees' Beneficiary Associations in company stock.