Health Tab To Soar at GM

Health care costs at General Motors Corp. and Ford Motor Co. will continue to rise at an alarming rate and are likely to spark a showdown with the United Auto Workers during upcoming contract talks, according to a new report released Monday by the respected credit-rating firm Fitch Inc.

Fitch looked at cash costs for health care at both GM and Ford and concluded that concessions made by the UAW in 2005 have not been enough to offset inflation-driven increases in health care spending, production cuts and the flow-back of workers from both automakers' former parts subsidiaries. Ford will see some modest gains as a result of its blue-collar buyout program, but both companies will continue to trend upward.


Read Article

drew630 - 2/27/2007 1:02:16 PM

+1 Boost

Yep, and GM cannot do anything about it until this summer when contract renegotiation begins.

sold2early - 2/28/2007 8:16:56 AM

+1 Boost

Maybe GM can convince the UAW guys to change the their diets to include things other than pork rinds and beer.