Judge approves GM-UAW health care settlement

[Ming]

Judge approves GM-UAW health care settlement
JIM IRWIN
Associated Press
Posted on Fri, Mar. 31, 2006

DETROIT - A federal judge on Friday approved a settlement requiring union retirees of General Motors Corp. to pay more for their health care.

U.S. District Judge Robert Cleland dismissed the objections of a group of retirees who said the settlement worked out by GM and the United Auto Workers violated their contracts.

Hourly workers approved the settlement by a 61-percent margin in November, but GM needed court approval to go forward with the plan since it involves retirees, who didn't get to vote.

Cleland noted that fewer than 1,250 people out of 476,000 retirees and dependents affected by the settlement objected to it and that the settlement would help keep GM a viable company.

Cleland said "a key objective in the settlement is to address GM's financial struggle and maintain the company's viability, allowing the continued generation of income from which both active employees and retired employees will benefit."

Acknowledging that some retirees would face hardship under the settlement, "the potential loss of all benefits due to ... GM's financial collapse" would be far more harsh for all retirees in its absence, the judge said.

Cleland said opponents' argument that they were not allowed to vote on the settlement was not a valid objection, noting there is "no provision in the UAW Constitution that gives retirees - unlike active employees - a right to vote on the ratification of a collective bargaining agreement."

Under the agreement, hourly retirees would pay deductibles, premiums and co-payments for the first time, up to $752 annually for families and $370 for individuals. Those amounts could rise in the next few years.

The agreement requires active GM hourly workers to contribute part of their future pay increases to a new fund to help pay for retirees' coverage. GM would contribute $3 billion to that fund through 2011.

Hourly retirees can expect to begin paying for a share of their health care by June 1, GM said.

"When we announced last October our tentative agreement on health care with the UAW, we said that it would significantly reduce GM's health care costs while allowing GM to maintain high-quality health care benefits for our hourly retirees," Chairman and Chief Executive Rick Wagoner said in a statement. "This approval allows us to fulfill those important objectives as we continue to rapidly implement all aspects of our North American turnaround plan."

William Payne, a Pittsburgh attorney representing retirees supporting the GM-UAW agreement, said retirees got an acceptable deal in light of GM's years of financial struggle.

"We're not celebrating in a situation where retirees have to pay, but we think it's a fair and good settlement," he said. "When we started (negotiating), another bad headline would come out and it's gotten worse. ... We're happy it got approved when it did."

Source: http://www.grandforks.com/mld/grandf...s/14236223.htm

[Gm786]

Great! At least the Judge approved the deal!

[Gm786]

Now for GM to move onto the next task.

[toronado10]

Originally Posted by Gm786

Now for GM to move onto the next task.

Lowering costs even more and product are going to be the chief problems in the foreseeable future.

[ScottS]

Originally Posted by Ming

Cleland noted that fewer than 1,250 people out of 476,000 retirees and dependents affected by the settlement objected to it and that the settlement would help keep GM a viable company.

Cleland said "a key objective in the settlement is to address GM's financial struggle and maintain the company's viability, allowing the continued generation of income from which both active employees and retired employees will benefit."

Acknowledging that some retirees would face hardship under the settlement, "the potential loss of all benefits due to ... GM's financial collapse" would be far more harsh for all retirees in its absence, the judge said.

I wonder if the Delphi judge will be just as smart. It's good to see someone gets it. A painful cut now beats the hell out having nothing tomorrow.

[asim]

Good, next task, eh? There are so many tasks at hand it is hard to choose which one to start with.

[01cavalier]

At least this one is done with, now on to all the other problems....

[Gm786]

Originally Posted by toronado10

Lowering costs even more and product are going to be the chief problems in the foreseeable future.

We will see how the next things that are coming up will play out.

[Mikkoo]

Deductables for healthcare, almost everyone has them. Did the retirees think they could skate along with them. Wake up and smell the coffee.!
This should have happened a long time ago.

[CobaltSScrazy]

Well, do whats best for the company and some benefits (even if you have to pay for them) are better than no benefits look on the brightside that way.

[member12]

Originally Posted by toronado10

Lowering costs even more and product are going to be the chief problems in the foreseeable future.

I would start by NOT selling off parts of the company...invest in product NOW. After the money runs out, file for bankruptcy protection and screw the UAW's Michael Moore supported protectionism for once. After that, I would invest my own money into GM, and sell after a few years when we come out stronger, more efficient, and smaller without legacy cost and paying market wages for market labor in states that have little to no history with the UAW.

If the UAW doesnt' bend- this will happen. I hope they dont' bend. I am counting on the UAW screwing all of its members out of money and jobs....GM will come out stronger, and they will invest more money into factory labor in America again.

After all, I can't see paying dues to an organization that would be so stupid.

[IMPALAon20s]

ah another april fools thread , right?

[303montecarlo]

Originally Posted by Ming

Judge approves GM-UAW health care settlement
JIM IRWIN
Associated Press
Posted on Fri, Mar. 31, 2006

DETROIT - A federal judge on Friday approved a settlement requiring union retirees of General Motors Corp. to pay more for their health care.

U.S. District Judge Robert Cleland dismissed the objections of a group of retirees who said the settlement worked out by GM and the United Auto Workers violated their contracts.

Hourly workers approved the settlement by a 61-percent margin in November, but GM needed court approval to go forward with the plan since it involves retirees, who didn't get to vote.

Cleland noted that fewer than 1,250 people out of 476,000 retirees and dependents affected by the settlement objected to it and that the settlement would help keep GM a viable company.

Cleland said "a key objective in the settlement is to address GM's financial struggle and maintain the company's viability, allowing the continued generation of income from which both active employees and retired employees will benefit."

Acknowledging that some retirees would face hardship under the settlement, "the potential loss of all benefits due to ... GM's financial collapse" would be far more harsh for all retirees in its absence, the judge said.

Cleland said opponents' argument that they were not allowed to vote on the settlement was not a valid objection, noting there is "no provision in the UAW Constitution that gives retirees - unlike active employees - a right to vote on the ratification of a collective bargaining agreement."

Under the agreement, hourly retirees would pay deductibles, premiums and co-payments for the first time, up to $752 annually for families and $370 for individuals. Those amounts could rise in the next few years.

The agreement requires active GM hourly workers to contribute part of their future pay increases to a new fund to help pay for retirees' coverage. GM would contribute $3 billion to that fund through 2011.

Hourly retirees can expect to begin paying for a share of their health care by June 1, GM said.

"When we announced last October our tentative agreement on health care with the UAW, we said that it would significantly reduce GM's health care costs while allowing GM to maintain high-quality health care benefits for our hourly retirees," Chairman and Chief Executive Rick Wagoner said in a statement. "This approval allows us to fulfill those important objectives as we continue to rapidly implement all aspects of our North American turnaround plan."

William Payne, a Pittsburgh attorney representing retirees supporting the GM-UAW agreement, said retirees got an acceptable deal in light of GM's years of financial struggle.

"We're not celebrating in a situation where retirees have to pay, but we think it's a fair and good settlement," he said. "When we started (negotiating), another bad headline would come out and it's gotten worse. ... We're happy it got approved when it did."

Source: http://www.grandforks.com/mld/grandforks/business/14236223.htm

This is Great news ,other than when GM gets back on its feet will it return the health care to the retirees? This like the Government take and no give,Good luck to all. There is a hope the Judge gets the same cut in his health care that he imposes.YOU KNOW THAT Won't happen

[steverino]

Another item for Rick & Jerry to check off on their "Things To Do" list


Jerry needs to replace Rick with a guy named Ben