- Sep 1, 2006
Ford, GM, Chrysler drop ineligible workers from healthcare roster
The Big 3 have been trying to shave their health care costs by cutting eligibility and the percentage of benefits for both retirees and current employees, but as it turns out, the three companies have found tens of thousands of people still receiving benefits despite their ineligibility. As a result, General Motors, Ford Motor Company and the Chrysler Group are purging their health care rosters and even forcing reimbursement from some of those on the lists.
As a result, the three companies have dropped over 86,000 people from their health care benefits plans, finding millions of dollars they would have otherwise lost.
Harsh? Maybe, but the companies don't want to be perceived as punishing false beneficiaries, but rather protecting the benefits of those who are actually eligible for them. Though the terms were worked out with the UAW, employees are still seething that the automakers have the right to dock their pay, even in cases where they feel that the HR red tape is to blame for the issues.
[Source: Detroit News]