UAW Officials From Chrysler Group Facilities Meet To Discuss Health Care Concessions
United Auto Workers officials from Chrysler Group plants around the country on Monday and Tuesday will meet in Dearborn, Mich., to determine whether the union should give Chrysler health care concessions similar to what it ratified with General Motors, the Detroit Free Press reports. Typically, contracts ratified by one Detroit automaker with UAW serve as the foundation for contracts with the others, according to the Free Press (Ellis, Detroit Free Press, 11/21). UAW voted to accept an agreement with GM on Nov. 11 that requires union retirees to pay monthly health insurance premiums and annual deductibles. It reduces GM retiree health care liability by about 25%, or $15 billion and would reduce annual health care costs by about $3 billion. In addition, GM would contribute $1 billion annually in 2006, 2007 and 2011 to a Defined Contribution Voluntary Employee Benefit Association to offset the cost impact. Under the agreement, active UAW employees would continue to receive health insurance at no cost but would have a small increase in prescription drug copayments. In addition, active employees would defer $1 per hour in future wage increases for the trust fund for retirees. In December 2006, employees would defer an additional two cents per hour each quarter for the fund (Kaiser Daily Health Policy Report, 11/14).
Chrysler
Unlike GM, Chrysler has reported increasing profits because of the success of certain car models, the Free Press reports. Chrysler reported a profit of $374 million in the third quarter last month, up 43% from $262 million in the same period last year, while GM lost $1.6 billion during that same period, according to the Free Press. An anonymous UAW delegate said he hoped other UAW officials would voice opposition to health care concessions because of Chrysler's financial success. "We would expect, based on a tradition of pattern bargaining, we would be able to reach some sort of agreement on health care with the United Auto Workers," Chrysler spokesperson Dave Elshoff said. UAW President Ron Gettelfinger said the union is focusing first on its discussions with Ford before it will bargain with Chrysler (Detroit Free Press, 11/21).
