Categorized | General Interest

GM-UAW Deal?

(The server must not have had its breakfast this morning because it was not cooperating. I know, this was very stressful for you…you shouldn’t be reading this Saturday anyway, which, of course, begs the question why I would write this on Saturday…but I digress)

The Wall Street Journal is reporting this morning (see a bit of the article below) that General Motors and the UAW are close to a deal on cutting health care costs. I hope that part of the deal calls for a committment on the part of GM to take up the cause of national health insurance–because, otherwise, we’ll be back at this issue again, either here with GM or another ailing company.

GM, Union Near Pact on Health Cuts

By LEE HAWKINS JR.

Staff Reporter of THE WALL STREET JOURNAL

October 15, 2005

General Motors Corp. and the United Auto Workers have moved closer to an agreement to cut health-care costs and aim to negotiate throughout the weekend in hopes of announcing a deal on Monday, union representatives briefed on the talks said.

GM, which is expected to report a third-quarter loss Monday, would like to counter those results with a deal that will help reduce its $5.6 billion annual U.S. health-care bill.

Several officials on the staff of UAW Vice President Richard Shoemaker, the union’s top negotiator with GM, sent emails to key regional and local UAW leaders Friday, saying progress was being made. One of the emails, from UAW staffer Lottie Caudle, stated, “We have reached a point in these talks where it is possible we could reach an agreement on this matter,” and “we will continue discussions this weekend in an effort to reach an agreement. We will notify you if we are successful.”

The world’s No. 1 auto maker, which has been in discussions with the UAW for months in an attempt to gain concessions from the union on health-care costs, has signaled to the UAW this week that it is prepared to reduce unilaterally pension benefits for union retirees if the two sides fail to agree on health-care cuts, union officials have said.

The two sides have made progress toward a deal that could include, among other things, higher co-payments for prescriptions and office visits for union workers, the officials said….”

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