United Auto Workers leaders agreed Wednesday in Detroit to endorse proposed cuts in healthcare benefits for current and retired workers of Ford Motor Co.
The deal "will obligate the automaker to spend $900 million on product innovation and new technology," the UAW said.
The UAW National Ford Council said its agreement, which must be ratified by active Ford members and then approved by a federal court, active workers will forego future pay increases through the deferral of 17 cents of future quarterly cost-of-living adjustments and the 3 percent wage increase scheduled for September 2006. In addition, after the 17-cent cost-of-living allowance has been reached, another 2 cents of each subsequent quarterly cost-of-living adjustment will be deferred.
Healthcare coverage for UAW-Ford active workers will be unchanged, other than several administrative changes and increases in prescription drug co-payments.
Retirees with Ford pension incomes of $8,000 or less and whose Ford pension benefit rate is $33.33 or less per month per year of service will not be affected by the proposed changes.
All other retirees and surviving spouses will be required to pay monthly premiums of $10 for individual coverage and $21 for family coverage.
© Copyright 2005 by United Press International
