Delay In Chrysler Contract Vote Might Stall Ford Negotiations With United Auto Workers

Main Category: Health Insurance / Medical Insurance
Also Included In: Seniors / Aging
Article Date: 19 Oct 2007 - 6:00 PDT

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United Auto Workers President Ron Gettelfinger on Monday said he hoped ratification voting on a tentative contract reached last week between the union and Chrysler Group would conclude on Sunday, but rank-and-file members will begin voting on Thursday and are not expected to finish until next week, the Detroit News reports (Morath/Aguilar, Detroit News, 10/18). The delay means that negotiations with Ford Motor -- the last of the Big Three to discuss a new contract -- could push into another week, according to the Detroit Free Press (Higgins/Webster, Detroit Free Press, 10/18).

The tentative Chrysler contract includes the creation of a UAW-run voluntary employees' beneficiary association that would shift retiree health care liabilities away from the automaker. The contract was approved by local leaders, but the vote was not unanimous as it was at General Motors, the first of the automakers to reach a contract deal. Some leaders were unhappy about Chrysler not naming specific future product guarantees to U.S. factories and not moving temporary workers to permanent positions, which was part of GM's contract. Under the contract, Chrysler would contribute $8.8 billion to the VEBA. It also would pay about $1.5 billion in 2008 and 2009 for retiree health care liabilities before the VEBA assumes them in 2010. In addition, the deal would create a two-tier wage system similar to the one created at GM (Kaiser Daily Health Policy Report, 10/16).

Gettelfinger on Monday said he believes the deal "will do very well" with rank-and-file members. He said, "It's just a matter of us getting out there and talking to the membership and explaining it to them," adding, "We did the absolutely best job that we could in these negotiations" (Detroit Free Press, 10/18).

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