Judge rebuffs GM retirees’ request for pay out

Rules that the restructured GM is not obligated to pay $450 million in

Once a bastion of post-retirement perks, in the past decade the auto industry and its golden-aged alumni have taken a fair share of lumps. In a decision on Dec. 10, a federal court ruled the reorganized General Motors no longer has an obligation to pay out health benefits it had promised to a subsidiary.

The suit came in 2010, when the group United Auto Workers (UAW) suited the just-then reorganized GM for $450 million payments to cover medical benefits for Delphi Corp.  The plaintiffs charged that a pact formed in 2007 was still viable. GM had agreed at that time that it would add money to the Voluntary Employee Benefits Association which would give healthcare to retired Dephi workers.

Executive Editor

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Chris DiMarco

Chris DiMarco, Executive Editor of InsideCounsel magazine, has a background in multimedia production with previous involvement in projects in which he developed and created content...

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