The UAW posted a lengthy message to its retirees on Friday on its Facebook page explaining why it had to agree to eliminate a Christmas bonus for former General Motors workers in its new four year agreement. “This year we face the worst shortfall in our history of pension underfunding,” the UAW said in a statement. “Because of Wall Street’s continuing problems, the GM hourly pension fund is seriously underfunded with a $15 billion to $20 billion shortfall.”
The union’s contract with GM, which a majority of workers ratified Wednesday, eliminated a Christmas bonus for retirees. The UAW is in contract talks with Ford and Chrysler, and is using the GM contract as framework for those discussions.
In the past, the UAW said, it funded pension increases and Christmas bonuses out of the UAW GM pension fund.
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