GM (GM) and the UAW are getting close to a contract according to news from The Wall Street Journal and several other sources. WSJ.com comments that the parties have moved "toward a historic deal that would include a multi-billion-dollar independent trust fund to manage retiree health-care costs for hundreds of thousands of Detroit autoworkers."
A deal along these lines would allow Detroit to close the gap in hourly costs between it and the Japanese. For GM, it would also take about $50 billion in liabilities off its balance sheet.
Douglas A. McIntyre