The NewStandard ceased publishing on April 27, 2007.

Automakers Lining Up for UAW Healthcare Concessions

by Brendan Coyne

Oct. 21, 2005 – Possibly smelling an opportunity following the recently announced deal between the United Auto Workers (UAW) and General Motors to shift a greater share of health care costs onto the shoulders of workers, two more automobile manufacturers are seeking similar compromises from unionized workers.

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Two days ago, the head of the US wing of DaimlerChrysler said the company would ask the UAW to approve a plan similar to the one it reached with GM.

That GM agreement, according to a UAW statement reached yesterday, requires most retired employees to pay $10 monthly for individual health care coverage and $21 for a family plan. Additionally, current employees would be forced to pay an undisclosed amount in administrative fees and both active and retired GM workers would pay a co-payment for prescription medication, according to a UAW statement released yesterday. The agreement, which must be ratified by UAW members, is projected to save GM $3 billion a year.

Analysts who spoke to Reuters said they expect a Chrysler-UAW agreement modeled on the GM deal would net the company over $3.5 billion a year in savings.

Ford Motor Company Chief Operations Officer Jim Padilla has told reporters that his company would "expect comparable changes."

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The NewStandard ceased publishing on April 27, 2007.

Brendan Coyne is a contributing journalist.

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