Tuesday, October 18, 2005

Auto Workers Union Wants Health Deal OK (AP)

The United Auto Workers said Tuesday it is asking a federal court to approve its tentative agreement with General Motors Corp. that would cut health care benefits for 750,000 workers, their families and retirees. GM and the UAW announced the outline of the agreement Monday.

If UAW members ratify the agreement, GM expects to save $3 billion (euro2.5 billion) annually before taxes on health care expenses. The agreement also would cut GM's liability for retiree health care expenses by $15 billion (euro12.6 billion), or 25 percent.

The union must get a court's approval so it can't be sued if retirees' benefits are cut. GM has long maintained it has the legal right to unilaterally cut retirees' benefits without the UAW's approval. The UAW disagrees with that view, but is asking the Detroit court to bind its retirees together so there are no doubts the settlement applies to all of them, GM spokesman Stefan Weinmann said.

GM said it supports the court filing and is working with the UAW to expedite approval of the agreement.

Copyright 2005 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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