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Article: Autoworkers OK GM health care cuts; Many retirees will pay for benefit coverage for first time.(News)(General Motors Corp.)
- Article from:
- Business Insurance
- Article date:
- November 14, 2005
- Author:
CopyrightCOPYRIGHT 2005 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: SALLY ROBERTS
DETROIT-Members of the United Auto Workers union on Friday ratified a new contract agreement with General Motors Corp. that calls for many hourly retirees to pay for health care coverage for the first time.
The agreement, announced last month, is expected to reduce GM's retiree health care liability by about $15 billion or 25% of the company's hourly health care liability. It also is expected to cut GM's annual employee health care expenses by about $3 billion on a pre-tax basis, with cash savings of about $1 billion a year, GM said last month. GM now spends about $5.6 billion a year on providing health care coverage to employees ...