GM: Flirting with the Nuclear Option

The ailing carmaker must cut health costs, but paring UAW retiree benefits without the union's consent risks all-out war

General Motors (GM ) and the United Auto Workers seem to be playing a dangerous game of chicken. GM Chairman G. Richard Wagoner Jr. said recently that he prefers a cooperative deal with the UAW on health-care issues rather than a fight, but he added: "Either way, it is crystal clear that we need to achieve a significant reduction in our health-care costs and to do so promptly."

To continue reading this article you must be a Bloomberg Professional Service Subscriber.