UAW Begins Contract Negotiations With GM, Ford; Companies Likely To Seek Health Care Concessions

The United Auto Workers on Monday began contract negotiations with General Motors and Ford Motor, with the companies likely to seek health care concessions from the union, the AP/Boston Globe reports. UAW on Friday began contract negotiations with the Chrysler Group. UAW contracts with the three companies will expire on Sept. 14.

According to the AP/Globe, UAW and company officials declined to "talk specifics about what they expect to get out of the negotiations," but "company officials have said privately that they need to cut retiree health care and other costs to better compete with the Japanese." Officials for GM -- which last year lost $2 billion and spent $4.8 billion for health care for employees, retirees and dependents -- have cited health care costs as the largest competitive disadvantage for the company.

However, UAW President Ron Gettelfinger said that the union previously agreed to health care and other concessions with GM and Ford to help the companies become more competitive. He added, "I think it's fair to say we've given a lot." He also said that UAW plans to seek four-year, rather than two-year, contracts with the companies and that strikes are possible (AP/Boston Globe, 7/24).


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