Daimler to pay $480 million to settle dispute with UAW

Article by Christian Andrei, 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

Login or Create new account to add a comment!

Recommended

Volkswagen Group’s dieselgate saga continues, but it appears the German company would be able to get out of trouble, but it would not be unscathed. This development comes as Volkswagen...
by - January 22, 2017
When a car has been in the market for nearly six years, it loses some of its luster and its customers tend to go for the all-new model with a...
by - January 22, 2017
Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 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