UAW Sues GM over VEBA Contribution for Delphi Retirees

April 7, 2010 ( - The United Auto Workers has filed a lawsuit against General Motors, claiming the automaker owes the union $450 million as part of a three-year-old contract with its former parts division, Delphi.

The Detroit Free Press reports that in the lawsuit, filed in U.S. District Court in Detroit, the UAW contends that GM was obligated through a labor contract and the bankruptcies of both GM and Delphi to pay $450 million intended for the UAW’s Voluntary Employee Beneficiary Association for retired Delphi workers. 

The UAW said GM in November rejected the UAW’s written request for payment into the Delphi VEBA, and since then, GM “has failed and refused to make the contractually required payment,” according to the news report.  

he UAW points out in the eight-page suit that GM, during its own bankruptcy last year, assumed all of its contracts with the UAW including the agreement with Delphi and the union. The lawsuit comes after GM acquired four former Delphi plants and Delphi’s Steering division during the supplier’s bankruptcy case, which ended in October.  

GM spokesman Tom Wilkinson declined to comment to the Detroit Free Press on the lawsuit.