GM And UAW Get Close: Stock Could Spike
Late word from Detroit is that GM (GM) and the UAW have agreed to set up a union controlled fund that would handle healthcare payments to the car company’s union workers. The move would take $55 billion off GM’s balance…
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Late word from Detroit is that GM (GM) and the UAW have agreed to set up a union controlled fund that would handle healthcare payments to the car company’s union workers. The move would take $55 billion off GM’s balance sheet.
As The New York Times pointed out "such voluntary trusts are funded at a discount to the liability, with investments generally ranging from 50 to 70 percent. The greater the funding, the less risk the union faces."
In a piece in Barron’s an analyst speculated that GM’s shares could easily move to $40 if an accord is announced.
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