FRANKFURT Aug 27 Daimler will pay
$480 million to settle a dispute with the United Auto Workers
(UAW) union over medical benefits for retired employees of its
North American trucks business, U.S. court records show.
The company has agreed to contribute to a trust to fund a
post-retirement healthcare plan to support active and recently
retired UAW-represented employees, according to documents filed
on Monday in Tennessee's federal court.
The agreement came after a group of retirees and the union
accused the truck manufacturer of illegally cutting their
benefits, the court filings show.
A Daimler spokesman referred to the company's quarterly
earnings report which said Daimler Trucks North America LLC and
the UAW had entered into an agreement over a healthcare plan as
part of a collective bargaining agreement in May, and that the
resulting cash outflow was expected in the fourth quarter.
The earnings report said the settlement had no material
impact on the group's consolidated statement of income or on the
earnings before interest and taxes of its trucks business.
(Reporting by Edward Taylor; Editing by Pravin Char)