AP: UAW trust to get 17.5 percent of GM shares

DETROIT (AP) — General Motors Corp. will give the United Auto Workers union 17.5 percent of its common stock, $6.5 billion of preferred shares and a $2.5 billion note to fund a trust that will take over retiree health care costs starting next year.

The funding is part of a tentative agreement that union members will vote on this week as GM tries to pull together the remaining pieces that would allow it to restructure outside of bankruptcy.

Members of the Canadian Auto Workers union approved wage reductions and other concessions Monday, but GM's unsecured bondholders have resisted an offer to take a 10 percent stake in the company to wipe out $27 billion in debt. Analysts say it's unlikely enough bondholders will approve the offer, meaning GM would still be forced into bankruptcy protection by next Monday.

Plant-level union officials met in Detroit on Tuesday to hear details of the agreement GM, the UAW and the government reached last week. Several local presidents said after the briefing that they voted unanimously to recommend that members approve the concessions.

The Associated Press obtained a summary of the agreement, which also gives the union trust fund a warrant for another 2.5 percent of GM's stock.

The summary says most of GM's 61,000 hourly workers will get another buyout and early retirement offer, this one sweeter than the most recent one.

Production workers will be offered $20,000 plus a $25,000 car voucher for early retirement, while skilled trades workers will get $45,000 plus the car voucher.

Buyout packages include $115,000 and the car voucher for employees with 20 or more years of service. Those with less than 10 years would get $45,000 and the car voucher to leave the company.

The summary also says GM will take back five facilities from Delphi Corp., its former parts arm now in Chapter 11 bankruptcy protection.

GM will take ownership of Delphi Saginaw Steering in Saginaw, Mich.; Delphi Thermal Systems in Lockport, N.Y.; Delphi Powertrain in Rochester, N.Y.; Delphi Powertrain Systems facilities in Rochester, N.Y., and Grand Rapids, Mich.; and Delphi Electronics and Safety in Kokomo, Ind.

Officials from UAW locals that represent Ford Motor Co. workers also attended Tuesday's 2 1/2-hour GM meeting to find out details of the concessions.