DETROIT — The United Auto Workers union and Detroit’s Big Three automakers tentatively agreed to concessions that may include a pay freeze, a cut in layoff benefits and a reduction in so-called skilled- trade positions, people familiar with the talks said.
But the union was unable to make a deal with GM, Chrysler and Ford on funding for a trust fund that will take over retiree health-care costs starting next year.
Terms of the deal were not announced, but they were expected to eliminate the jobs bank in which laid-off workers get most of their pay, as well as make work-rule and other changes that the government loan terms set so that the companies’ labor costs are competitive with their Japanese counterparts that have U.S. factories.
Union president Ron Gettelfinger said in a statement that discussions are continuing with all three companies about billions of cash payments into the trust funds.
GM and Chrysler are living on a total of $17.4 billion in government loans, with GM getting another $4 billion Tuesday. Ford has said it won’t need loans if the economy doesn’t worsen this year.
