Under the direction of the Treasury Department, General Motors is close to a deal with the United Auto Workers that would cut its hourly labor costs by more than $1 billion a year, The Wall Street Journal said, citing people familiar with the matter.þþG.M. expects to halve its remaining cash outlays for retiree health costs to about $10 billion, and supplement that contribution with a 39 percent equity stake in the reorganized company, the newspaper said. þþThe plan is still in a state of flux but G.M. and the union could finalize terms as early as next week, according to The Journal.þþG.M. has been in talks with the U.A.W. on a new contract and new payment terms for the $20 billion it owes the union for retiree health care.þþ
Source: NY Times
