Exhibit 10.1
SETTLEMENT AGREEMENT BETWEEN AND
AMONG
GMCo/MLC-IUE-CWA AND
USW
REGARDING RETIREE HEALTH CARE,
LIFE INSURANCE,
PENSION TOP-UP, AND
MODIFICATION
AND GMCO ASSUMPTION OF
MLC-IUE-CWA CBA
This Settlement Agreement (together
with the Exhibits hereto, the “Settlement Agreement”),
is between General Motors Company (“GMCo”), Motors
Liquidation Company (“MLC” formerly known as General
Motors Corporation), the IUE-CWA, the Industrial Division of the
Communications Workers of America, AFL-CIO,CLC
(“IUE-CWA”) and the United Steel, Paper and Forestry,
Rubber, Manufacturing, Energy, Allied Industrial and Service
Workers International Union, AFL-CIO,CLC (“USW”). The
IUE-CWA and USW also enter into this Settlement Agreement as the
authorized representative, as defined in Section 1114(c)(1) of
Title 11 of the United States Code (the “Bankruptcy
Code”), of those persons receiving retiree benefits, as
defined in Section 1114(a) of the Bankruptcy Code, pursuant to
collectively bargained plans, programs and/or agreements between
MLC and the IUE-CWA or the USW (or an IUE-CWA or USW predecessor)
and who are members of the Covered Group, as defined herein.
Collectively, the IUE-CWA, the USW, GMCo, MLC and the Covered Group
are referred to as the “Parties.”
MLC agreed to provide certain
retiree medical benefits in various collectively bargained
agreements with the IUE-CWA and the USW. MLC, the IUE-CWA and the
Class entered into a settlement agreement in the class action of
IUE-CWA, et al. v. General Motors Corp.,
No. 2:06-cv-12151 (E.D. Mich) (“Combs”).
Subsequent to entering those collective bargaining agreements and
the class settlement agreement (the “Combs
Settlement”), MLC commenced a case under Chapter 11 of the
Bankruptcy Code entitled In Re General Motors Corp., et al.,
No. 09-050026 (REG) (“MLC Chapter 11 Case”) in the
U.S. Bankruptcy Court (S.D. N.Y.) (the “Bankruptcy
Court”). Pursuant to an Order of the Bankruptcy Court, GMCo
purchased substantially all of the assets of MLC.
The IUE-CWA and the USW assert, and
GMCo and MLC deny, that GMCo and/or MLC are required to continue to
provide retiree medical benefits in accordance with those
collective bargaining agreements and the class settlement agreement
and, further, to provide certain pension benefit guarantees in
accordance with collectively bargained memorandums of understanding
regarding establishment or restructuring of Delphi Corporation
(“Delphi”). GMCo maintains that it is not obligated to
assume or to continue to abide by the MLC collective bargaining
agreements with the IUE-CWA or the USW, the Combs Settlement or the
Delphi restructuring memorandums of understanding. MLC maintains
that it is entitled to cancel or terminate all obligations arising
from collective bargaining agreements between MLC and the IUE-CWA
or the USW. After due consideration of the factual and legal
arguments regarding these issues, as well as the costs, risks, and
delays associated with litigating these issues, GMCo, MLC and the
IUE-CWA and USW have agreed to resolve all claims regarding such
matters on the basis set forth in this Settlement
Agreement.
|
1.
|
Pension Top-Up
: In the event that pension benefits
received by a retired Covered Employee from the PBGC, or a
combination of the PBGC, Delphi or another entity (including a
Delphi Divested Unit), as a consequence of termination of the
Delphi Hourly Retirement Plan
|
Page 1 of 15
|
|
(“Delphi HRP”),
referred to herein as “Insured Pension Payments,” are
less than what otherwise would have been received by the retired
Covered Employee from the Delphi HRP according to plan terms as of
July 22,2009, GMCo will provide supplemental payments to such
retired Covered Employee so that when combined with the Insured
Pension Payments such retired Covered Employee will receive pension
benefits equal to what otherwise would have been paid by the Delphi
HRP according to plan terms. For the avoidance of doubt, by this
provision GMCo agrees to pay benefits to the retired Covered
Employee equal to the difference between the amount of Insured
Pension Payments and the amount of benefits that would have been
paid by the Delphi HRP according to its terms had it not been
terminated.
|
|
|
a.
|
Covered
Employee shall mean those IUE-CWA or USW represented Delphi
employees who had unbroken seniority and were employed by GM under
the terms of the 1996 GM-IUE-CWA or GM-USW National Agreement as of
the spin-off of Delphi from GM on May 28,1999 who were not
employed under a competitive wage agreement as of May 28,
1999, i.e., Tier II or Tier III employees; provided however, that
IUE-CWA or USW represented employees who were employed as of
May 28,1999 and were initially hired under a competitive wage
agreement that provided for them to grow into full parity for all
purposes, including but not limited to all benefit participation on
the same basis as non-competitive hire employees and the ability to
grow into full wage parity, are also Covered Employees. It is
understood that employees represented by Splinter Unions as
hereafter defined are not eligible for the Pension Top-Up
regardless of their election to participate in the retiree health
care and life insurance coverages contemplated by this Settlement
Agreement.
|
|
|
b.
|
A Covered
Employee will be entitled to the Pension Top-Up only with respect
to a retirement under Article II, Section 1 (Normal
Retirement), Section 2 (Early Retirement) or Section 3
(Total and Permanent Disability Retirement) of the Delphi HRP. A
Covered Employee receiving only a deferred vested benefit under
ArticleVII, Section 2 (Retention of Deferred Pension if
Separated) as a former employee is not entitled to the Pension
Top-Up.
|
|
|
c.
|
In
consideration of the commitments described in this paragraph 1, in
the Chapter 11 bankruptcy case of In re Delphi Corporation, et
al., Case No. 05-44481 (RDD), the IUE-CWA and USW agree to
withdraw their objections (Docket No. 17793 and No.18258) and
waive any further objections to the First Amended Joint Plan Of
Reorganization Of Delphi Corporation And Certain Affiliates,
Debtors And Debtors-In-Possession (As Modified) submitted by the
Debtors on June 1, 2009 (as further modified) (the
“Modified Plan”) or Delphi’s motion to approve
the Modified Plan (Docket No. 16646). Further, the IUE-CWA and
USW agree to waive any Seller U.S. CBA restrictions to the proposed
sale of operations, including Document 63 (IUE-CWA) and Document 53
(USW), to the extent necessary to accomplish the Modified
Plan.
|
|
2.
|
Up-To-7
Years Accrual : GMCo
agrees to amend the GMCo General Motors Hourly-Rate Employees
Pension Plan (“GMCo HRP”) to provide the
following:
|
Page 2 of 15
|
|
a.
|
Covered
Employees, who were Delphi employees as of November 30, 2008,
the date that Delphi froze the Delphi HRP (the “Freeze
Date”), or Covered Employees who were employed as of the
Freeze Date at a Delphi operation divested after October 8,
2005 and prior to the Freeze Date (“Delphi Divested
Operation”) will be eligible to accrue credited service under
the GMCo HRP for all purposes, including but not limited to
eligibility, vesting, and future benefit accruals for the seven
(7) year period commencing on the Freeze Date. Any such
benefits provided by the GMCo HRP shall be at the level and scope
in effect at Delphi on July 22, 2009 (the
“Up-to-7-Effective Date”) and shall be secondary to
benefits provided by Delphi, the Delphi HRP, any Delphi Divested
Operation or any benefit plan of such operation, any of their
subsidiaries, affiliates or successors or associated pension plans,
and/or the Pension Benefit Guarantee Corporation
(“PBGC”). In no event shall the GMCo HRP provide
pension benefits on such credited service at a level and scope that
exceeds that being provided to hourly retirees of GMCo. The amount
of such credited service accrued will equal:
|
|
|
i.
|
The amount of
credited service that, but solely for Delphi Freezing the Delphi
HRP, would have been earned after the Freeze Date under Article III
of the Delphi HRP in effect on the Up-to-7-Effective Date;
and
|
|
|
ii.
|
To the extent
not taken into account in Paragraph 2(a)(i), above, the amount of
credited service that, but solely for the Freeze and divestiture,
would have been earned while working after the Freeze Date at any
Delphi Divested Operation under Article III of the Delphi HRP in
effect on the Up-To-7-Effective Date.
|
Nothing in this Settlement Agreement
shall be deemed to require GMCo to grant credited service beyond
that described in this Paragraph 2(a). Employees shall be provided
only the amount of credited service earned as described in this
Paragraph 2(a), and shall not receive credited service otherwise.
It is understood that employees represented by Splinter Unions as
hereafter defined are not eligible for the Up-To-7 Years Accrual
regardless of their election to participate in the retiree health
care and life insurance coverages or other aspects contemplated by
this Settlement Agreement.
|
|
b.
|
In regard to
the credited service accrued in the GMCo HRP under Paragraph 2(a)
of this Settlement Agreement, the GMCo HRP will recognize Delphi
HRP credited service accrued prior to the Freeze Date for purposes
of vesting and eligibility to retire for any Covered Employee. No
other Delphi HRP credited service will be recognized by the GMCo
HRP.
|
|
|
c.
|
The GMCo HRP
benefit payable to a Covered Employee, who retires as a Normal
Retirement under and as defined by Article II, section 1 of the
Delphi HRP and GMCo HRP, will be a Basic Benefit (as defined
according to the GMCo HRP) and based on GMCo HRP credited service
accrued under Paragraph 2(a) of this Settlement Agreement and the
rates in effect under the Delphi HRP as of the Up-To-7-Effective
Date.
|
Page 3 of 15
|
|
d.
|
The GMCo HRP
benefit payable to a Covered Employee, who retires under Article
II, section 2(a)(3) of the Delphi HRP and GMCo HRP with a combined
30 or more years of credited service prior to age 62 and one month,
will be a Basic Benefit payable beginning at age 62 and one month
based on the number of years of credited service accrued under the
GMCo HRP under Paragraph 2(a) of this Settlement Agreement and the
rates in effect under the Delphi HRP as of the Up-To-7-Effective
Date.
|
|
|
e.
|
The GMCo HRP
benefit payable to a Covered Employee, who retires under the Delphi
HRP and GMCo HRP prior to age 65 with a combined 85 Points or at
least age 60 with 10 or more years of credited service, under
Article II, section 2(a)(l) or 2(a)(2) of the Delphi HRP and GMCo
HRP or as a Total and Permanent Disability retirement under Article
II, section 3 of the Delphi HRP approved by Delphi or the PBGC
pursuant to the procedures applicable to the Delphi HRP as of the
date immediately preceding the Up-To-7-Effective Date and approved
by GMCo under the procedures applicable to the GMCo HRP, or for
IUE-CWA Covered Employees the Kettering Ohio, Moraine Ohio and
Anaheim California plants only, and for USW Covered Employees of
the Home Avenue plant only (including those who transfer in
accordance with their seniority to the Vandalia plant in
conjunction with cessation of operations at the Home Avenue plant)
as a retirement under mutually satisfactory conditions pursuant to
Article II, section 2(b) of the Delphi HRP, will consist of the
following:
|
|
|
i.
|
the Basic
Benefit based on the number of years of credited service accrued
under the GMCo HRP under Paragraph 2(a) of this Settlement
Agreement, age at time of retirement, and the rates in effect under
the Delphi HRP as of the Up-To-7-Effective Date. Such benefits from
the GMCo HRP are payable beginning upon the date of retirement and
will be re-determined, if applicable, at age 62 and one month,
under the terms of the Delphi HRP in effect as of the
Up-To-7-Effective Date; and
|
|
|
ii.
|
if applicable,
an interim supplement based on the rates in effect under the Delphi
HRP as of the Up-To-7-Effective Date for the number of years of
credited service accrued under the GMCo HRP under Paragraph 2(a) of
this Settlement Agreement and age at time of retirement. The
duration of such interim supplement is modified as set forth in the
letter in the Delphi HRP entitled Social Security.
|
|
|
iii.
|
if applicable,
a temporary benefit based on the rates in effect under the Delphi
HRP as of the Up-To-7-Effective Date for the number of years of
credited service accrued under the GMCo HRP under Paragraph 2(a) of
this Settlement Agreement. Provided, however, that such number of
years of credited service when added to the number of years of
credited service in the Delphi HRP will not exceed 30. The duration
of such temporary benefit is modified as set forth in the letter in
the Delphi HRP entitled Social Security.
|
Page 4 of 15
|
|
f.
|
Any Covered
Employee who, after considering: i) the credited service accrued in
the GMCo HRP under Paragraph 2(a) of this Settlement Agreement; ii)
the Delphi HRP credited service recognized in the GMCo HRP for
eligibility to retire under Paragraph 2(b) of this Settlement
Agreement; and iii) age at retirement or separation from service
from Delphi, or any Delphi Divested Operation, is not eligible for
retirement under the GMCo HRP as described in Paragraph 2(c), 2(d),
or 2(e) of this Settlement Agreement, will receive only a deferred
vested benefit from the GMCo HRP based on the years of credited
service accrued under the GMCo HRP under Paragraph 2(a) of this
Settlement Agreement. The Basic Benefit will be based on the number
of years of credited service accrued under the GMCo HRP under
Paragraph 2(a) of this Settlement Agreement, age at time of benefit
commencement, and the rates in effect under the Delphi HRP as of
the Up-To-7-Effective Date. Neither GMCo, nor the GMCo HRP, will
have any obligation to supplement the deferred vested amounts set
forth above.
|
|
|
g.
|
For the
avoidance of doubt, for the purposes of Paragraph 2 of this
Settlement Agreement for Covered Employees who have not retired or
separated from service from Delphi, GMCo, or any Delphi Divested
Operation, the GMCo HRP will continue to recognize the growth in
age of such Covered Employees during the period they are considered
an active employee with seniority in the Delphi HRP. For purposes
of such recognition of growth in age in the GMCo HRP, such Covered
Employees will not be considered by the GMCo HRP to have separated
from service from GM on a “time for time” basis during
the period they are considered an active participant in the Delphi
HRP. A Covered Employee shall be deemed an active participant in
the Delphi HRP, other than for purposes of future benefit accruals
and subject to the other terms of the Delphi HRP in effect and to
the extent permitted by law, for all periods on or after the Freeze
Date and prior to retirement or separation from service from
Delphi, any Delphi Divested Operation, MLC, or GMCo.
|
|
3.
|
Claims in MLC’s Chapter
11 Case : The IUE-CWA,
USW and all Splinter Unions (as hereafter defined) that agree to
applicable terms in this Settlement Agreement shall be granted an
allowed prepetition unsecured claim in MLC’s Chapter 11 Case
in the amount of one billion dollars with respect to retiree health
and life insurance benefits for the post-age-65 retirees,
post-age-65 surviving spouses and under-age-65 retirees or
surviving spouses disqualified for Retiree Health Care Benefits due
to Medicare eligibility who are represented by IUE-CWA, USW and the
Splinter Unions (the “Allowed Claim”). Age for purposes
of the preceding sentence shall be determined as of
December 31, 2009. The Allowed Claim shall be in full
settlement, satisfaction and discharge of all claims against MLC
and its affiliates and their present and former officers and
directors by the IUE-CWA, USW and the Splinter Unions or any
employees, retirees or other persons or beneficiaries represented
by or subject to agreements entered by such unions with MLC (the
“Splinter Claims”) against MLC and its affiliates and
their respective officers, directors. Upon approval of this
Settlement Agreement by the Bankruptcy Court, any and all Splinter
Claims shall be withdrawn, released and dismissed with prejudice
and the IUE-CWA, USW and the Splinter Unions shall promptly take
all such action necessary or required to effectuate the foregoing,
including providing releases to MLC. Any funds resulting from the
Allowed Claim shall be distributed in a manner as authorized by the
Bankruptcy Court. To the extent approved by
|
Page 5 of 15
|
|
the Bankruptcy Court, MLC agrees
that the IUE-CWA, USW, and the Splinter Unions have a right to
sell, assign or transfer their respective Allowed Claim as they
deem appropriate at any time.
|
|
4.
|
Retiree
Health Care Benefits - On and After July 10, 2009 and Through
December 31, 2009 .
For claims incurred on and after July 10, 2009 and through
December 31, 2009, retiree health care for eligible IUE-CWA or
USW retirees will be provided in accordance with the terms of the
MLC Health Care Program for Hourly Employees (the “MLC
Plan”) as applicable to retiree members of the Covered Group
as it existed on July 10, 2009. The claims described in this
Paragraph 4 shall be paid by either GMCo or MLC as may be
determined between GMCo and MLC. As of January 1, 2010, all
obligations by either GMCo or MLC to provide retiree health care in
accordance with the GM Hourly Plan shall cease and be forever
terminated. A claim is deemed incurred for purposes of this Section
as of the date treatment is provided, regardless of when such
treatment was scheduled and regardless of whether such treatment
was part of a continuation of related treatments.
|
|
5.
|
Retiree
Health Care Benefits - On and After January 1, 2010
. For claims incurred on or after
January 1, 2010, GMCo will provide retiree health care to eligible
IUE-CWA or USW retirees as follows and MLC shall have no liability
or responsibility thereafter:
|
|
|
a.
|
GMCo will
create a separate retiree health care plan with participation
limited to eligible IUE-CWA and USW retirees and retirees
affiliated with other Splinter Unions where those Splinter Unions
elect, on a union-by-union basis, to participate on behalf of
retirees and members who are similarly situated to the Covered
Group with respect to health care in retirement and to be bound by
the terms of a settlement agreement related to retiree health care
and life insurance equivalent to those contained in this Settlement
Agreement. It is understood that Splinter Union retirees are not
eligible for the Pension Top-Up or Up-To-7 Years Accrual as
contemplated by this Settlement Agreement. The term “Splinter
Union” as used in this Settlement Agreement shall include the
following, including any predecessor unions where
applicable:
|
|
|
i.
|
International
Association of Machinists and Aerospace Workers;
|
|
|
ii.
|
International
Brotherhood of Electrical Workers;
|
|
|
iii.
|
Michigan
Regional Council of Carpenters, Local 687 and Interior Systems,
Local 1045;
|
|
|
iv.
|
International
Brotherhood of Painters and Allied Trades of the United States and
Canada, Sign & Display Union Local 59;
|
|
|
v.
|
International
Brotherhood of Teamsters;
|
|
|
vi.
|
The
International Brotherhood of Boilermakers;
|
|
|
vii.
|
International
Union of Operating Engineers;
|
Page 6 of 15
|
|
viii.
|
United Catering
Restaurant Bar & Hotel Workers; and
|
|
|
ix.
|
With respect to
any Splinter Union retirees where the union has failed or refused
to accept appointment as the authorized representative pursuant to
11 USC § 1114, any committee appointed by the Bankruptcy Court
as the authorized representative of such Splinter Union
retirees.
|
|
|
b.
|
GMCo’s
obligation to make contributions toward retiree health care under
this plan shall be fixed and capped at the specified level of
expenditures on an average annual cost per contract basis for
pre-Medicare Single coverage of $4,640 and for pre-Medicare family
coverage of $9,030 (the “Cap”). The total value of
health care benefits under this Settlement Agreement, inclusive of
benefits paid under Paragraph 4 of this Settlement Agreement, is
limited to an aggregate net present benefit value of $467 million
(“Aggregate Net Present Value”) with respect to all
eligible IUE-CWA, USW and Splinter Union participants. GMCo shall
deliver the Aggregate Net Present Value to participants over time
reduced on a proportionate basis with respect to Splinter Unions
that elect not to participate and by amounts paid in accordance
with Paragraph 5(f) (“Adjusted Value”). It is
understood that GMCo’s total obligation for the IUE-CWA, the
USW and all Splinter Unions is limited to the Aggregate Net Present
Value and that once it has been exhausted GMCo shall have no
further obligation to make contributions toward health care for the
Covered Group or for any covered members of Splinter Unions that
elect to participate. It is further understood that the Aggregate
Net Present Value shall be reduced on a proportionate basis with
respect to Splinter Unions that elect not to participate. Spending
against the Aggregate Net Present Value shall be determined by
recording the annual health care benefit expenditures pursuant to
this Settlement Agreement discounted at a rate of 7.2%. Participant
contributions are not counted against the Aggregate Net Present
Value and are not counted as part of the Caps in any year. At the
point in time where GMCo’s total amount paid reaches the
Adjusted Value GMCo shall cease making any contributions toward
health care for the Covered Group or covered members of Splinter
Unions that elect to participate regardless of whether such
participants otherwise satisfy plan eligibility
criteria.
|
|
|
c.
|
The Aggregate Net Present Value
was determined based upon an expected 92% rate of participation,
resulting in a plan design generally in accordance with the
description contained on Attachment A. Both the IUE-CWA and USW
believe that the actual rate of participation will be less than
92%. The IUE-CWA and USW believe that a conservative estimate of
the expected rate of participation is 82%. Therefore, GMCo agrees
that it initially will configure plan design generally in
accordance with the description contained on Attachment A, except
that GMCo will presume a participant acceptance rate of 82% for
IUE-CWA, USW and Splinter Unions that elect to participate and
adjust the participant monthly contribution for 2010 to account for
the estimated annual savings associated with the additional
anticipated 10% of eligible participants that decline participation
in the plan as offset by amounts paid to participants electing to
opt-out. For 2011, after accounting for anticipated increases or
decreases in health care costs, GMCo will determine the actual
opt-out savings and actual amount of opt-out payments that occurred
during the
|
Page 7 of 15
|
|
2010 plan year and will adjust
the 2011 plan design any differences resulting from an over or
under estimation of the rate of participation or level of opt-out
savings that occurred in 2010. Thereafter, GMCo will analyze and
project retiree health care expenses on an annual basis, net of any
additional opt-out related savings from the previous year and
excluding any annual savings associated with those who previously
opted-out but have since attained 65 years of age, at which time
the participant would have lost eligibility for Retiree Health Care
Benefits under this Settlement Agreement. GMCo will adjust the plan
design as necessary to maintain benefit coverages within the Cap on
an aggregate basis across both pre-Medicare single and pre-Medicare
family coverage without reduction in the aggregate amount of annual
Cap expenditures caused by participant’s loss of eligibility
to participate for reasons other than mortality or Medicare
eligibility, at which time the participant would have lost
eligibility for Retiree Health Care Benefits under this Settlement
Agreement. For the avoidance of doubt, otherwise eligible
individuals will no longer be eligible for Retiree Health Care
Benefits under this Settlement Agreement upon attainment age 65 or
if under age 65 upon becoming Medicare eligible, subject to rules
governing end stage renal disease. For periods in which the Cap is
exceeded, GMCo will make whatever plan design changes it deems
necessary to recover the overpayment in the next plan year as well
as to adjust for any anticipated increases in retiree health care
costs in the next year. For periods in which the Cap has not been
reached, GMCo will make whatever plan design changes it deems
necessary to increase benefit levels to the extent of the Cap so
they are distributed in the next plan year after adjusting for any
anticipated increases in retiree health care costs in the next
year.
|
|
|
d.
|
GMCo will bear
all costs of plan administration.
|
|
|
e.
|
The IUE-CWA and
USW may create an advisory committee and appoint members thereof;
such advisory committee shall also include representatives of other
Splinter Unions that have elected participation in accordance with
this Settlement Agreement who wish to participate and who appoint
their own representative members. If created, GMCo will advise the
advisory committee reasonably prior to the implementation of any
such adjustments of anticipated plan design adjustments deemed
necessary to maintain benefit coverages within the Cap along with
its rationale for any such adjustments. The advisory committee may
provide advice and counsel with respect to any such adjustments,
provided that GMCo may in its sole discretion accept or reject any
such advice and that the process of involving the advisory
committee shall not delay the ordinary and customary implementation
of plan design alterations deemed necessary by GMCo to reflect the
constraints of the Cap. The creation and operation of the advisory
committee shall be at the expense of the unions participating in
such committee and GMCo shall have no obligation to pay or to
defray any cost or expense associated with creation of the
committee or its operations or activities.
|
|
|
f.
|
Prior to January 1, 2010,
the GMCo will initiate a one-time option for participants
represented by the IUE-CWA, the USW and Splinter Unions that elect
to participate to elect to voluntarily decline participation in the
plan and in exchange for a monetary buyout in the amounts set forth
on the Opt-Out Payment Schedule on Attachment D
|
Page 8 of 15
|
|
hereto. Thereafter, the one-time
option will be offered to eligible retirees at the inception of
their participation in the plan. All elections to opt-out of the
plan are final and cannot later be revoked.
|
|
|
g.
|
With respect to
contributions toward health care and life insurance in retirement
pursuant to collective bargaining agreements between MLC and the
IUE-CWA or the USW, MLC maintains that it had reserved the right to
unilaterally amend, modify or terminate the respective plans or the
benefits provided by those plans. The IUE-CWA and the USW maintain,
however, that MLC did not effectively reserve such rights and that
it was prohibited from unilaterally altering health care or life
insurance for retirees. For purposes of this Settlement Agreement,
the parties agree that GMCo’s right to amend, modify or
terminate the retiree health care or life insurance benefits set
forth herein shall be to the same extent as existed under the
applicable collective bargaining agreements between MLC and the
IUE-CWA or the USW, respectively. Apart from any right that GMCo
may retain as a consequence of any reservation by MLC of the right
to amend, modify or terminate health care in retirement, the
parties agree that GMCo shall have the right to modify or amend the
plan design in order to implement the Cap as set forth in this
Settlement Agreement.
|
|
|
h.
|
The IUE-CWA,
USW, Splinter Unions that elect to participate and all
retirees/members within the scope of this agreement will not in the
future seek to negotiate any modifications or changes to the health
care benefits provided by GMCo.
|
|
|
i.
|
All obligations
of MLC, the MLC Plan and any other MLC entity or benefit plan for
health care in retirement for members of the Covered Group or any
other person claiming entitlement to health care in retirement
pursuant to an IUE-CWA or USW collective bargaining agreement other
than as set forth herein shall be forever terminated as of the
Effective Date.
|
|
6.
|
Basic Life
Insurance : Effective the
first of the month following the Effective Date, GMCo will provide
Basic Life Insurance in retirement to eligible IUE-CWA and USW
retirees in the maximum fixed amount of $10,000 as provided for in
attachment B of the Closure Agreement as modified according to
Attachment B to this Settlement Agreement. Retirees whose basic
life insurance coverage is below $10,000 will remain at the lower
amount. Current active employee members of the IUE-CWA will have
Basic Life Insurance in the fixed amount of $10,000 effective upon
the date of retirement. MLC shall have no responsibility or
liability for such insurance. The IUE-CWA, USW or included
members/retirees will not in the future seek to negotiate any
modifications or changes to the life insurance coverages provided
by GMCo. All obligations of MLC, the MLC Plan and any other MLC
entity or benefit plan for basic life insurance for the included
members/retirees arising from any GM-IUE-CWA or GM-USW collective
bargaining agreement shall be forever terminated as of the
Effective Date.
|
|
7.
|
Covered
Group : The retiree
health care and life insurance commitments shall apply to the
“Covered Group,” which shall mean:
|
Page 9 of 15
|
|
a.
|
MLC employees
who were represented regarding the terms and conditions of their
employment with MLC by the IUE-CWA or the USW and who retired from
MLC under circumstances such that they were eligible for MLC
contributions toward their health care and life insurance in
retirement according to the terms of an IUE-CWA or USW collective
bargaining agreement with MLC in effect at the time of their
retirement, and their eligible spouses, surviving spouses and
dependents;
|
|
|
b.
|
All active MLC
employees (including those on a leave from which they are eligible
to retire from MLC) who are represented with respect to the terms
and conditions of their employment with MLC by the IUE-CWA and who
transfer to GMCo pursuant to GMCo’s assumption of the Moraine
Closure Agreement pursuant to this Settlement Agreement and who
retire from GMCo under circumstances such that considering their
combined MLC and GMCo service they would have qualified for MLC
contributions toward health care and life insurance in retirement
as determined according to criteria for such eligibility as existed
in the 2003 GM-IUE-CWA National Agreement, and their eligible
spouses, surviving spouses and dependents;
|
|
|
c.
|
All Delphi
employees who were represented with respect to the terms and
conditions of their employment with Delphi by the IUE-CWA and who
applied for employment consideration with MLC under the terms of
the Special Employee Placement Opportunities (“SEPO”)
agreement, which is Attachment G to the August 5, 2007 GM,
Delphi, IUE-CWA Memorandum of Understanding, and who were hired by
MLC into a UAW Represented MLC Plant in accordance with the terms
of the SEPO agreement and who retired from MLC or who transfer to
GMCo and retire from GMCo, under circumstances such that
considering their combined Delphi, MLC and GMCo service they would
have qualified for corporate contributions toward health care and
life insurance in retirement as determined according to criteria
for such eligibility as existed in the 2003 GM-IUE-CWA National
Agreement, and their eligible spouses, surviving spouses and
dependents;
|
|
|
d.
|
All Delphi
employees who were represented with respect to the terms and
conditions of their employment with Delphi by the IUE-CWA and who
are within the definition of “Covered Employees” as
that term is used in Section 17.A. of the Attachment B to the
lUE-Delphi-GM Memorandum of Understanding Delphi Restructuring
dated August 5, 2007 or who were represented by the USW and who are
within the definition of “Covered Employees” as that
term is used in Section 17.A. of the Attachment B to the
USW-Delphi-GM Memorandum of Understanding Delphi Restructuring
dated August 16, 2007, and who satisfy the criteria described
therein such that upon their retirement they would have qualified
for contributions toward health care and life insurance in
retirement from GM/MCL, and their eligible spouses, surviving
spouses and dependents;
|
|
|
e.
|
The term
“surviving spouses” shall include surviving spouses of
a Covered Group retiree as well as surviving spouses of Covered
Group active employees who died or die prior to retirement under
circumstances such that at the time of death the employee would
have been eligible to retire under circumstances meeting any of the
Covered Group classifications (a, b, c and d).
|
Page 10 of 15
|
8.
|
Assumption
of the Moraine Closure Agreement : As of the Effective Date, GMCo will assume the
terms and conditions of the Closure Agreement but only as modified
during these negotiations as set forth on Attachment C. Assumption
of the terms and conditions of the Closure Agreement shall not
constitute assumption of MLC’s pre-Closing Liabilities under
the Closure Agreement or assumption of any collective bargaining
agreements outside the scope of the Closure Agreement, including,
without limitation, memorandums of understanding regarding Delphi
restructuring.
|
|
9.
|
Release : Except as related to claim arising from an
alleged breach of obligations set forth herein, as of the Effective
Date, the IUE-CWA, the USW and all Covered Employees and members of
the Covered Group and all persons claiming entitlement to health
care or life insurance in retirement pursuant to an IUE-CWA or USW
collective bargaining agreement release and forever discharge GMCo,
its predecessors and its current or former officers, directors,
employees, agents, subsidiaries, affiliates, and any and all of its
welfare and pension benefit plans and their fiduciaries, with
respect to any and all rights, claims or causes of action that any
of them have or hereafter may have, whether known or unknown,
suspected or unsuspected, concealed or hidden, arising out of,
based upon or otherwise related to any claim arising out of their
employment with MLC, including, without limitation, alleged
breaches of a collective bargaining agreement, the Combs
Settlement, concerning any alleged entitlement to health care in
retirement, any alleged entitlement to life insurance in
retirement, and any claim the basis for which is predicated upon an
allegation that GMCo is a successor to MLC. The term
“collective bargaining agreement” is intended to have
the broadest possible interpretation, inclusive of any and all
national agreem
|
|