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http://www.bloomberg.com/apps/news?pid=20601087&sid=a4AYIw.j_aqc&refer=home
By Jeff Green and Mike Ramsey

Sept. 24 (Bloomberg) -- The United Auto Workers, in pay talks with General Motors Corp.,
set a strike deadline for 11 a.m. New York time today, the 10th day since its current contract
with the largest U.S. automaker was originally due to expire.

``We're shocked and disappointed that General Motors has failed to recognize and appreciate
what our membership has contributed during the past four years,'' UAW President Ron Gettelfinger
said in an e-mailed statement. ``In this current round of bargaining, we did everything possible to
negotiate a new contract.''

Cal Rapson, the UAW's vice president for GM, said in the statement that negotiations with the
Detroit-based automaker would continue until the 11 a.m. deadline. The notice fulfills Gettelfinger's
promise in a Sept. 17 letter to members to set a strike target if the talks didn't accelerate in ``an expeditious manner.''

``Setting a strike deadline after the extended extension is meant to focus the remaining issues
and announce an agreement'' today, said Harley Shaiken, a labor relations professor at the University
of California-Berkeley. ``But that could always slip, resulting in another extension or a picket line.''

Strike Notice

A strike notice was posted last night on the Web site of UAW Local 160, and it was verified with
union negotiators, GM spokesman Dan Flores said.

GM hasn't had a UAW strike since the union walked out at two parts factories in Flint, Michigan,
in 1998, forcing the closure of 26 of 29 North American assembly plants for the Detroit-based automaker.

The two sides had been extending talks on an hour-by-hour basis since 11:59 p.m. Sept. 14. Local 160,
representing workers at GM's technical center in Warren, Michigan, posted the strike notice
at 10:43 p.m. New York time yesterday.

``The 2007 contract talks involve complex, difficult issues that affect the job security of our U.S. workforce
and the long- term viability of the company,'' Flores said. ``We are fully committed to working with the UAW
to develop solutions together to address the competitive challenges facing General Motors.''

Agreement in Principle

GM and the UAW agreed in principle three days ago for the automaker to make a one-time payment to
a union-run retiree health fund and win a release from future liabilities of about $50 billion, three people
familiar with the talks said. That allowed attention to shift to issues including wages, job security, pensions
and health care, the people said.

Discussions on the health fund were suspended at one point last week after the two sides couldn't agree
on how much GM would contribute, people familiar with the talks said. Bargainers returned to the issue after
GM proposed alternatives including reduced wages and employment, the people said.

Chief Executive Officer Rick Wagoner has said he needs to pare health costs as GM cedes sales and U.S.
market share to Toyota Motor Corp. and other foreign competitors. His goal is to cut fixed expenses such as
labor to 25 percent of revenue by 2010, from about 30 percent now, after losing $12.4 billion in 2005 and 2006.

401(k) Plan

GM has also asked the UAW to consider replacing the current pension with a 401(k) retirement savings plan
for new hires, who also would have to accept a fixed annual payment for medical care once they retire, the
people said. All workers are being asked to accept a freeze in cost-of-living allowances and other concessions,
the people said.

In return, the automaker has offered incentives such as a cap on out-of-pocket health-care expenses for retired
and active workers and giving lump-sum bonuses to employees for ratifying the contract, the people said. GM
has about 73,000 U.S. factory workers represented by the UAW.

``We will continue focusing our efforts on reaching an agreement as soon as possible,'' Flores said.
The Wall Street Journal reported the strike deadline late yesterday.

1998 Strike

The 1998 UAW walkout at GM canceled production of 318,000 vehicles and cut profit by $1.3 billion.
Afterward, GM reorganized its labor department to help avoid future stoppages.

The complexity of creating a new health care system such as the so-called Voluntary Employee Beneficiary
Association, or VEBA, and other changes reportedly on the bargaining table requires a ``measured'' pace
in negotiations, said Paul Gerhart, a professor at Case Western Reserve University in Cleveland.

``Frankly, contracts reached in a hurried way often lead to a lot more issues later that have to be ironed out,''
said Gerhart, who also arbitrates labor disputes.

The medical obligations of GM, Ford Motor Co. and Chrysler LLC totaled $114 billion at the end of 2006.
The three U.S. automakers estimate they pay $25 to $30 more an hour for American factory workers than
Toyota and Honda Motor Co. do at their U.S. plants. Most of the gap is due to retiree health care, the U.S. automakers say.

Ratification Vote

Once an accord at GM is in place, the union would then attempt to extend the basic terms to
Ford and Chrysler, where negotiations are on hold until a GM agreement is reached. Contracts
for all three automakers were due to expire Sept. 14.

GM shares have gained 14 percent this year, spurred by optimism about an agreement on the
VEBA. GM rose 47 cents to $34.94 on Sept. 21 in New York Stock Exchange composite trading,
for the fifth increase in seven days.

The automaker's 8.375 percent bond due July 2033 climbed 0.75 cent to 87.25 cents on the dollar,
according to Trace, the bond-price reporting system of the NASD. The yield fell to 9.73 percent.

Credit-default swaps based on GM debt fell 26 basis points to 548 basis points in New York, a
two-month low. A basis point on a credit-default swap contract protecting $10 million of debt from
default for five years is equivalent to $1,000 a year.

The VEBA concept's popularity was boosted by a trust created by Akron, Ohio-based Goodyear
Tire & Rubber Co. North America's largest tiremaker made a one-time contribution of $1 billion for
a fund managed by the United Steelworkers union, under a contract approved in December.

Unlike pensions, retiree health care isn't insured by the U.S. government and companies aren't required
to fund it at any particular level. As of June 30, GM had set aside $18.9 billion toward retiree medical expenses,
including $3.6 billion available for immediate use.
_______________________

Ledelsen har tideligere i forløbet truet med at flytte produktionen til Mexico, hvis de ikke fik deres krav igennem, som
var på ~30% reduktion i 'health care'.

Så kom den, her kl. 12:55 pm ET
http://www.cnbc.com/id/20951472
UAW Declares Nationwide Strike Against GM

"Thousands of United Auto Workers walked off the job at General Motors plant
around the country on Monday in the first nationwide strike during auto contract negotiations since 1976."

Jan Rasmussen