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March 3, 2021
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Retiree Health Benefits Sticking Point for UAW
(2007-09-17)
(wgvu) - NEW YORK (AP) - A health care trust being discussed by the UAW
and General Motors would shift retiree health care payments from
the company to the union.
Contract talks have resumed today between the United Auto
Workers and GM.
An apparent point of contention is the creation of a trust to
cover GM's 51 billion dollar unfunded obligation to health care for
retirees.
GM would create the trust and the union would manage it.
Opponents say retirees could face higher health care
contributions, less insurance or even no coverage if the plan runs
out of money.
Proponents say that even partial funding under VEBA -- or
voluntary employees beneficiary association -- is better than none
at all.
The problem for workers is that the trusts are almost never 100
percent funded.
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