From our "Well, that was quick" files, General Motors and the United Auto Workers have setttled their one day old strike by agreeing to an historic deal on retiree health benefits:GM is carrying some $50 billion in unfunded retiree health obligations on its books, a liability that executives say has helped make the company less competitive against foreign manufacturers like Toyota. The Japanese auto giant is expected to supplant GM this year as the world's largest car maker. Under the agreement, responsibility for the retiree health plan will shift to a Voluntary Employees' Beneficiary Association managed by the union. Details about how the VEBA will be funded have not been disclosed. But it is expected to involve a one-time payment of as much as $35 billion by GM, providing the union with money to invest and to pay for retiree benefits while reducing the company's future expenses by billions of dollars. Creation of the retiree health trust is to be monitored by a judge and...(Read Full Post)