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UAW Retiree Healthcare Trust Loses GM Board Seat
A healthcare trust representing retired United Auto Workers union members has relinquished its seat on the General Motors Co. board.
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A healthcare trust representing retired United Auto Workers union members has relinquished its seat on the General Motors Co. board, Automotive News reports.
The VEBA (voluntary employees’ beneficiary association) acquired 87.5 million shares in GM—which jumped to 262.5 million when the stock split—as a result of GM’s bankruptcy restructuring. The deal also entitled the UAW to a board seat, provided that the fund retain at least half its originally acquired shares.
GM says the VEBA relinquished that right as the result of a stock sale in February that reduced the trust’s stake to about 100 million shares. Even so, the VEBA remains GM’s largest shareholder.
Retired UAW Vice President Joe Ashton was appointed to the VEBA seat in 2014, marking the first time the union had even been represented on GM’s board.
Ashton resigned last December amid a federal probe into the misuse of funds for a worker training center co-operated by the UAW and Fiat Chrysler Automobiles NV. Investigators also have been studying the finances of similar centers operated by GM and Ford Motor Co.
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