According to a story from The New York Times, the Treasury Department and Chrysler are readying Chapter 11 bankruptcy documents for filing as early as next week.
Two years ago when Ford was negotiating a new contract with the UAW, the automaker was paying its union workers the oft-bandied amount of $70 per hour. That amount wasn't the actual hourly wage of each employee, though, but rather the employee's hourly wage plus the cost of contributions to current and future benefits for retirees and workers still with the company. Now, due to a newly signed agreement with the United Auto Workers union, Ford projects that total cost per worker will go down to $
Ford Motor Company says it has reached a tentative deal with the UAW regarding modifications to the Voluntary Employees' Beneficiary Association (VEGA) pact, the union's retiree health care trust. While specifics are not yet being divulged, the Blue Oval says that it has agreed to make up to half of its future payments into the fund with Ford common stock, although it may continue to use cash depending on the automaker's needs.
Although labor talks between GM and the UAW have been going on since the union's contract expired last Friday at 11:59 PM EST, we've been following the late-night negotiations from afar, waiting for something that amounted to more than the mainstream media's perpetually boring status updates. That finally came today in an article in the Detroit News, which reports GM may be considering signing bonuses for current works in an effort to win the hearts and minds of the proletariat if the automaker
Can this be the buy of the century? As the rumors of Chrysler's sale increase analysts are starting to talk about just how much it might cost a prospective bidder to secure the rights from Daimler. The numbers they are throwing around seem amazingly cheap. Some are going so far as to say that DCX might have to pay a potential suitor to take Chrysler off its hands. The huge $16.7 billion health care funding is one of the big reasons for that, but the values the analysts are putting on the various
Chrysler no doubt felt a little burned by the United Auto Workers Union after being told it would receive no concessions for health care like the ones offered to both General Motors and Ford. At the time, the UAW cited the Chrysler Group's better financial health as the reason for the snubbing, but apparently the automaker's $1.5 billion loss last quarter and its expected loss of $1.2 billion for the year is enough to convince UAW president Ron Gettelfinger (shown at right with then Chrysler Gro
The UAW on Wednesday jumped on rumors that it had reopened talks with Chrysler. According to a piece in The Detroit News, UAW spokesman Roger Kerson said there was no meeting over one of the biggest sticking points, health care, as was rumored elsewhere. Although the UAW has reached health care agreements with GM and Ford this year, they broke off talks with Chrysler over this issue in September, likely because Chrysler wasn't in as dire of straights as Ford and GM. Chrysler spokesman Mike Aberl
UAW President Ron Gettelfinger is apparently done being pushed around by the domestic auto industry. Despite having given landmark cost-saving concessions on health care to both General Motors and Ford, Gettelfinger indicated to Reuters the same offer would not be extended to The Chrysler Group. The UAW considers Chrysler to be in a better financial state than GM and Ford, and therefore has disregarded the time honored tradition of pattern bargaining and not accepted Chrysler's latest concession
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.
The political alliances in the Motor City have historically been rather black-and-white, with the UAW lining up alongside Democrats and management favoring the Republicans. Yes, one can find exception to these stereotypes, but the above comes as close as one can to describing 40-some years of voting behavior in one sentence. But the times are changing, and traditional alliances between the political parties and their supporters in the auto industry are increasingly stressed.
The district court case between the United Auto Workers and the Ford Motor Co. will have to go without Judge Anna Diggs Taylor. The judge has excused herself from the health care paring case, citing the fact that’s on the Henry Ford Health System’s board. The case has been handed over to Judge Paul Borman, who will be the third magistrate assigned to the matter. The move comes after Mark Baumkel, who is a lawyer for the plaintiffs opposed to the deal had called for Taylor to remove h
According to the International Herald Tribune, Michigan physicians, hospitals and medical insurers have noted an increase in the number of elective surgery requests since last year. Replacements for knees, hips and shoulders were up by 20 percent at the Henry Ford Health System alone.
OK, the headline is crass, but it's true -- General Motors says it spends $17 million on erectile dysfunction drugs like Viagra and Cialis. While it's a small chunk of the $5 billion the company spends on health care for 1.1-million salaried and retired employees plus their dependents every year, execs are using it as a prime example of how screwed up the current health care system is.
Following hot on the heels of Chrysler’s health care cost restructuring, Ford has announced that it will begin charging an extra fee to employees who choose to cover their spouses on their own policy if they are able to be covered elsewhere. The extra cost will be $110/month for medical coverage and $11/month for dental.
As Chrysler spends nearly $2.3bil on health care costs per year, about $8K per worker, it was evident at the top level that changes to the system would have to be made. Those changes were announced yesterday and involve a sliding scale of out-of-pocket premium increases that’s based on each salaried employees pay level.