Detroit News: GM & UAW Near Health Care Agreement

[Perian]

Link: http://www.marketwatch.com/news/yhoo...72E93065C67%7D

Meanwhile, a published report said GM and the United Auto Workers are close to striking a deal that would cut the automaker's health-care costs.

In its online edition, the Detroit News said the deal under discussion could yield cuts of more than $1 billion in annual health costs. That's about a sixth of 2005's estimated health-care bill, which the newspaper said could approach $6 billion.

Such a deal would affect both GM's current staff and covered retirees, but the Detroit News report noted that people familiar with the talks say they could still fall apart.

From The Detroit News - 10/05/05:

General Motors Corp. and the United Auto Workers appear to be nearing a deal to cut the automaker's ballooning annual health care costs, expected to approach $6 billion this year.

Talks between both sides intensified last weekend in advance of GM's board meeting Tuesday, in part because GM officials signaled they wanted a framework to present to GM's directors. Individuals familiar with the discussions cautioned that a deal is not certain.

"They worked all weekend," a senior industry executive familiar with the talks said, adding that the financial impact to GM could have the word "billion" attached to it. "They've been hammering at it hard, and they're still hammering at it."

The deal under discussion likely would shave at least $1 billion from GM's annual health care bill, meaning the changes almost certainly would impact active UAW members as well as the hundreds of thousands of retirees nationwide by increasing co-pays for prescription drugs and perhaps instituting cost-sharing of monthly premiums.

If reached amid comparatively good times for auto sales and the economy, the agreement would be historic for Detroit's tough labor-management relations.

It would signal that the UAW, traditionally suspicious of the poor-mouthing from Detroit auto executives, recognizes that the troubles weighing on GM and other Detroit automakers won't be eased solely by "hot products," asset sales and cost-cutting within the diminishing ranks of nonunion salaried employees.

None of that is proving sufficient to ease the deepening financial troubles of GM, which has lost $2.5 billion in North America this year and is expected to post a lackluster third quarter when it announces earnings Oct. 17.

Article continues at link: http://www.detnews.com/2005/autosins...A01-338212.htm

[Perian]

Wow.

What a year it's been for GM!

This should do wonders for the stock price today.

[joey]

If it gets ratified by the UAW, it might help stock prices. But Oct. sales figures will probably keep them in the toilet.

[Ming]

GM needs a deal that can help it out. I hope that the UAW sees this. Otherwise they'd better redouble their efforts to Unionize Toyota factories, because they won't have half the jobs they do now.

[TorchRedCorvette]

Originally Posted by Ming

GM needs a deal that can help it out. I hope that the UAW sees this. Otherwise they'd better redouble their efforts to Unionize Toyota factories, because they won't have half the jobs they do now.

There is a reason that workers who retire are not being replaced...
Just imagine if there were new hires,then GM would pay health care benes TWICE.

We all know that a 60 year old is usually more expensive to insure than a 22 year old.

[lineworker]

I am wondering if I will get a raise to cover the increase in my health care? That should stir the pot.

[fatratchevy]

consider the pot stirred. . . .fool. . .

[lineworker]

Originally Posted by fatratchevy

consider the pot stirred. . . .fool. . .

HAHAHA!fool

[Randle2I]

I'm saving any & all optomism till the contract is signed. We all know how well GM is at negotiating & how the UAW loves to never give in.

[Black04GTO]

Originally Posted by lineworker

I am wondering if I will get a raise to cover the increase in my health care? That should stir the pot.

I work for a major insurance company and pay $376 per month for Blue Cross (family of 4). As I told my buddy who works @ the Arlington Plant - Welcome to the Real World:beer:

[TorchRedCorvette]

Originally Posted by Black04GTO

I work for a major insurance company and pay $376 per month for Blue Cross (family of 4). As I told my buddy who works @ the Arlington Plant - Welcome to the Real World:beer:

I paid $1100/mo for an HMO for a family of five...

Moved and now am paying $400/mo for a PPO,with a 2k deductible.

[TorchRedCorvette]

Originally Posted by lineworker

I am wondering if I will get a raise to cover the increase in my health care? That should stir the pot.

They need to discontinue coverage for Viagara.
Will save MILLIONS!

[goblue1999]

Originally Posted by lineworker

I am wondering if I will get a raise to cover the increase in my health care? That should stir the pot.

You deserve a raise to cover the cost of increased gas prices, cigarette taxes, beer and lotto tickets, too.

[McG]

Originally Posted by goblue1999

You deserve a raise to cover the cost of increased gas prices, cigarette taxes, beer and lotto tickets, too.

lol....classic

[lineworker]

Originally Posted by goblue1999

You deserve a raise to cover the cost of increased gas prices, cigarette taxes, beer and lotto tickets, too.

Never thought about the lotto tickets.