Daimler to pay $480 million to settle dispute with UAW

Article by Christian A., on August 30, 2014

Daimler will cough up $480 million in payment to settle a dispute with the United Auto Workers union over medical benefits for retired employees at its North American trucks operations, according to documents filed in a federal court in Tennessee.

The German carmaker has agreed to make contributions to a trust to finance a post-retirement health care plan that will support active and recently retired UAW-represented employees, court documents show.

The documents also show that the agreement was inked following a claim made by a group of retirees that the truck unit – divulged to be as Daimler Trucks North America LLC -- of illegally cutting their benefits.

A spokesman for the carmaker referred to its quarterly earnings report that said Daimler Trucks North America LLC and the UAW had signed an agreement over a health care plan as part of a collective bargaining agreement in May.

The report said that the cash outflow as a result of the agreement was expected in the fourth quarter of 2014. [source: automotive news - sub. required]

Topics: daimler, uaw

If you liked the article, share on:

Comments

Recommended

There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries