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Ford, DCX
Want Deal UAW Gave to GM
Oakland Press
October 19, 2005
Ford Motor Co. and DaimlerChrysler are certain to press the United Auto Workers for healthcare concessions identical to those the union has tentatively approved for General Motors.
Ford spokesman Oscar Suris said Tuesday that conversations between the company and the union are private but it has been an open secret around Detroit that the automakers have been watching closely the UAW's discussions with GM.
Meanwhile, Dieter Zetsche, who will take over as DaimlerChrysler's chief executive next year, said during an appearance in Tokyo that the German-American automaker also was interested in a deal with the union that could reduce the automaker's spending on health care.
DaimlerChrysler spokesman Ed Saenz said the company has regular discussions with the union on a variety of topics but could not say if specific discussions are actually under way. "I'm guessing we'll wait until (the GM) agreement is ratified," he said.
Meanwhile, the union took the first tentative steps toward ratifying the new health plan by filing a lawsuit against GM in U.S. District Court in Detroit. At the same time, the union also filed a separate motion asking the court for approval for the terms of the tentative settlement.
On the one hand, the lawsuit against GM stakes a claim for the benefits on behalf of GM's blue-collar retirees while on the other hand the motion outlining a proposed settlement shows how the claim is being satisfied, according to union officials familiar with the proceedings. The lawsuit is to cover the union if retirees sue the union over cuts to their benefits.
UAW spokesman Paul Krell also said the union initiated the proceedings in order to begin the court approval process and will work to expedite the proceedings.
The language of the tentative agreement is being finalized, and the UAW is briefing local union leaders and retiree groups on the proposed changes, he added.
Details will not be released until that process is complete, which should be soon. Given that a court is now involved, the whole process could take more time to complete, union officials acknowledged.
GM announced earlier this week it reached a tentative agreement with the UAW that will help lower its spending on health care for workers and retirees.
Richard Wagoner, GM chairman and chief executive officer, said the agreement would reduce GM's retiree health care liabilities by about 25 percent, or $15 billion, over a seven-year period. It would cut GM's annual employee health care expenses by about $3 billion on a pretax basis.
Cash savings are estimated at $1 billion a year and the benefits would begin to accumulate before the end of the year, Wagoner said.
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