GM sued by UAW for $450M over Delphi fund

GM sued by UAW for $450M over Delphi fund

Automotive News | April 7, 2010 – 12:34 pm EST

DETROIT (Bloomberg) — General Motors Co. was sued by the UAW over claims the automaker owes $450 million to the retiree health care fund of parts supplier Delphi Corp.

GM breached a contract promising to fund a voluntary employee beneficiary association, or VEBA, for Delphi retirees, according to the lawsuit filed Tuesday in Detroit federal court. General Motors, Delphi’s former owner, made the promise in 2007. The court overseeing Delphi’s bankruptcy approved the agreement in October 2009, the union said.

In October, "the UAW made a written demand that the company honor its contractual obligation to make the foregoing payment" to the VEBA, the union said in its complaint. In November, "that UAW demand was rejected and since that time the company has failed and refused to make the contractually required payment."

Delphi’s union-run fund was one of several set up by auto industry companies to cut costs by shifting responsibility for retiree health care. The UAW said General Motors owes the money despite its own bankruptcy protection filing last year. Tom Wilkinson, a GM spokesman, declined to comment.

GM filed for bankruptcy protection on June 1, and emerged on July 10. The company is still struggling to get back to profitability as it tries to boost sales in the United States and restructures its Opel unit in Europe.

Delphi, once the largest U.S. auto-parts supplier, filed for bankruptcy in October 2005 after failing to win wage cuts and financial aid from GM. The company emerged from bankruptcy under the new name of Delphi Holdings LLP in October.

Bargaining Committee

Mike Herron
Tim Stannard
Zone at Large – 1st
Danny Taylor
Zone at Large – 2nd
Mark Wilkerson
Joe McClure
Chad Poynor
Steve Roberts
Derek Lewis
Bill Cundiff
Kirk Zebbs
Don Numinen
Jay Minella
Danny Bragg
Chris Hill
Rashad Thomas
Keith Oswald
Chris Brown

1853 Officers

Tim Stannard
Mike Herron
Vice President
Darrell DeJean
Financial Secretary
Mark Wunderlin
Recording Secretary
Peggy Mullins
Trustee (3)
Jay Lowe
Dave Clements
Dave Spare
Sgt. at Arms
David C Spare
Ashley Holloway
E-Board at Large (2)
David Ryder
Steve Roberts

GM Unit Chair
Mike Herron
Leadec Unit Chair
Larry Poole
Ryder Unit Chair
Patrick Linck
AFV Unit Chair
Katherine McGaw
Retiree Chair
Mike Martinez