Tuesday, Jun. 02, 2009
Let's Party Like It's 1999
1999: After raising executive bonuses to record levels, GM agrees to the most expensive contract in the company's history. Contract negotiations in the auto industry have always been dramatic. But after a bitter strike at factories in Flint, Mich., in 1998, GM wanted peace. The UAW, energized by the industry's record profits and the lush bonuses doled out to executives, entered the negotiations demanding much more — and got it. The new contract included wage increases, bonus money, increases in pensions, more health-care perks and new benefits like college tuition for dependents. GM, along with Ford and Chrysler, agreed to everything despite warnings about the rising cost of pensions and runaway costs of retiree health care.