Union: GM agrees to pay $50M more for Delphi retiree health care

[Omaha Steve]

http://www.detnews.com/article/20090901/AUTO01/909010423/1148/Union++GM+agrees+to+pay+$50M+more+for+Delphi+retiree+health+care

Tuesday, September 1, 2009

David Shepardson / Detroit News Washington Bureau

Washington -- General Motors Co. has agreed to pay another $50 million to fund health benefits to nearly 50,000 hourly retirees and dependents at Delphi Corp. who were represented by the IUE-CWA and other smaller unions, union officials said today.

GM also agreed to a number of other concessions in the deal announced Tuesday, the IUE-CWA announced. It said the unions have reached a tentative agreement with GM for the automaker "to provide baseline security for retirees who are facing the loss of health care and pensions."

Asked the company's response, GM spokeswoman Susan Garavaglia said in a statement that the "old" and "new" GM companies, which were split in bankruptcy proceedings, "have been in negotiations with the IUE to come to a resolution on retiree health care issues. We are finalizing our discussions and will not be able to provide any additional comments until this has been concluded."

Under the agreement reported by the union, retirees under age 65 who are covered by GM insurance will be offered an improved package with an extra $50 million in payments from the automaker to defray the cost of the high-deductible coverage originally offered. It wasn't immediately clear what the additional money will mean for premiums.

The deal reportedly will allow GM to end coverage for Medicaid-eligible retirees.

The IUE-CWA said the deal includes a "top-up" from GM for Delphi retirees, whose pensions were terminated and being assumed by the Pension Benefit Guaranty Corp., a federal corporation that protects the pensions of American workers.

IUE-CWA said some former Delphi workers stood to lose half of their income without this agreement.

FULL story at link.