Union Releases Labor Pact Details

October 20, 2005 (PLANSPONSOR.com) - The tentative agreement reached his week between General Motors and the United Auto Workers (UAW) calls for the retirees to pay up to $752 per family annually for retiree health care of UAW members.

The UAW on Thursday revealed details of the tentative agreement, which first was announced by GM on Monday (See GM Reaches Health Care Deal With Union ), the Associated Press reported.

Also, UAW-GM retirees with GM pension incomes of $8,000 and less and whose GM pension benefit rate is $33.33 per month per year of service or less will not be affected by the proposed changes in the tentative agreement. Their health care coverage will continue as is, except for administrative changes.

Active hourly workers also have to shell out more for their prescription drugs and defer $1 an hour in future pay increases to help pay for retirees’ health care, according to the news report.

“UAW-GM active workers and retirees have long enjoyed some of the best health care coverage of any industrial workers in America, and they will continue to do so under the terms of the tentative agreement,” UAW President Ron Gettelfinger said at a news conference Thursday in Detroit, according to the AP.