New UAW Labor Pact With Fiat Chrysler Drops Health-Care Co-Operating
October 09 2015 - 1:40PM
Dow Jones News
The United Auto Workers' new pact with Fiat Chrysler Automobiles
N.V. ditches a health-care initiative advocated by union president
Dennis Williams as a way to curb fast-rising medical costs,
according to the UAW.
The UAW returned to the bargaining table this week to secure a
new tentative agreement with the company after an earlier deal was
widely rejected by members.
Mr. Williams had wanted to establish a health care co-op that
would pool all active and retired factory workers into one
purchasing group and then use the group's size as leverage to win
cost savings from medical providers.
The co-op was included in the defeated labor deal but has since
been eliminated in response to confusion among workers about how it
would affect their medical benefits, the union said.
Local union officials are gathering in Detroit Friday to learn
about the details of this latest agreement, which also raises pay
for new hires and offers more details on product commitments, say
people familiar with the matter. The UAW declined to comment until
after union officials have voted on the proposal.
Write to Christina Rogers at christina.rogers@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 09, 2015 13:25 ET (17:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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