California Autos Examiner

Friday, September 08, 2006

Gettelfinger to Chrysler: You're On Notice




The UAW doesn't seem to feel that Chrysler is in the same dire straits that Ford and GM find themselves in, so Captain Ron says "No soup for you!" Under a 2005 agreement with GM, hourly workers contribute $1 per hour in future pay increases to a new fund to help pay for retirees' health coverage. Single retirees would pay up to $370 a year in deductibles and fees for their coverage and most retirees and all active hourly workers would pay higher co-payments for their prescription drugs. In the deal with Ford, which also was reached last year, retired autoworkers would start paying monthly contributions, annual deductibles and co-payments for some medical services up to a maximum of $370 a year for individuals and $752 for a family. They didn't pay such fees before. Hourly workers won't be required to pay deductibles or monthly contributions, but they will have to contribute part of their future wage increases to a trust for future health care expenses. The agreement also raises the cost of prescription drugs and institutes a $50 emergency room fee for retirees.


I don't know what the Viagra bill is over at Chrysler since neither it nor Ford want to talk openly about ED, but certainly there is going to be a squabble over the unequal treatment that the UAW would like to dish out to Chrysler. Like with children, you can't give two kids yellow balloons and one kid a red balloon and not expect there to be some trouble. I'm not sure what books Ron and company looked into when reaching this decision, but how about looking into Chrysler's overflowing inventory books?

source: automotive news, wsj

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