The Detroit Three's 267,000 hourly retirees will soon receive a COLA (cost of living allowance) of $700 each to cover the cost of inflation; an annual tradition that arrives in time for the holiday season. The 72,000 surviving spouses will also be rewarded with up to $455 to help with rising costs.
That's a lot of people receiving quite the sum of checks, and someone has to foot the bill. General Motors has to sign the most signatures with a bill that Automotive News says approaches $200 million. Ford will pay $70 million and Chrysler will pay $35 million. While retirees will no doubt relish their stipend, active employees will receive no such allowance. The United Auto Workers eliminated their cost of living increase as part of concessions made during 2007 and 2009 contract negotiations.
[Source: Automotive News - sub. req.]Read | Permalink | Email this | Comments