December 7, 2007

General Motors and UAW reach agreement on first phase of attrition program

Detroit, Michigan – General Motors Corporation and the United Auto Workers Union (UAW) have reached an agreement on the first phase of a comprehensive special attrition program. The agreement is a key step in the implementation of the 2007 GM-UAW national contract.

In the first phase, the attrition program will be offered to all UAW-represented hourly employees at GM’s Service Parts and Operations facilities across the U.S., and to employees at specified plants in Pennsylvania, New York, Oklahoma, New Jersey and California. Program details for employees in GM’s assembly, stamping, powertrain and engineering facilities will follow in early 2008.

“We continue to work closely with our UAW partners to improve our competitiveness in the currently challenging U.S. market conditions, while also investing in future products and technologies critical to support our leadership in fuel economy,” said Rick Wagoner, GM Chairman and CEO. “This first phase of a comprehensive attrition program, designed in conformance with the 2007 UAW national labour agreement, provides our employees with attractive options to consider.”

The program will include a combination of early retirement incentives and other considerations similar to the special attrition program that GM, the UAW and Delphi implemented in 2006.

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