Financial Times FT.com

GM in milestone deal with union

By John Reed in London and Bernard Simon in Toronto

Published: September 26 2007 09:40 | Last updated: September 26 2007 19:09

General Motors and the United Auto Workers union agreed a four-year contract on Wednesday that represents a milestone in efforts by US companies to shift healthcare costs to their workers.

The deal, which creates a giant union-managed fund to provide healthcare, is likely to pave the way for similar agreements at GM’s smaller Detroit rivals, Ford Motor and Chrysler.

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