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UAW IN FEDERAL COURT TO HURT UAW RETIREES


RayBarone

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UAW in federal court to cut benefits for UAW Retirees

 

GM, UAW seek judge's approval of health deal - BY SARAH A. WEBSTER

FREE PRESS BUSINESS WRITER - December 17, 2005

 

General Motors Corp. and the United Auto Workers jointly filed a motion in federal court on Friday asking a judge to approve their recent health-care settlement, which would curtail benefits for 500,000 retirees, surviving spouses and dependents

 

The request in U.S. District Court in Detroit comes in response to a lawsuit filed Oct. 18 by the UAW and several retirees, which asks to be recognized as a class action and challenges GM's assertion that it has the right to change or terminate retiree benefits unilaterally. GM also consents in the court filings to the UAW's petition to be recognized as a class.

 

Federal labor law gives unions broad powers to represent workers but is more vague about retirees. Persuading a judge to approve the deal would recognize the UAW as the retirees' rightful representative. The UAW filed a lawsuit to get a similar settlement with Ford Motor Co. approved.

 

GM posted a loss of $3.8 billion during the first nine months of the year and estimates the new deal with the UAW would save it $1 billion annually.

 

Copyright © 2005 Detroit Free Press Inc.

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