GM Union Retirees Said to Cede Dental, Prescription Benefits

[Joanne98]

Source: Bloomberg


May 13 (Bloomberg) -- General Motors Corp. union retirees will give up coverage of dentist visits and some prescription drugs such as Pfizer Inc.’s Viagra under a proposed United Auto Workers contract, people familiar with the talks said.

Those changes would match reductions that start as soon as July 1 for Chrysler LLC retirees, said the people, who asked not to be identified because the details aren’t public. Cuts in unemployment benefits and work-rule changes at GM also would mimic the Chrysler concessions, the people said.

GM, surviving on $15.4 billion in U.S. loans, needs to win ratification of a new contract before June 1 as one of the conditions to avoid a government-ordered bankruptcy. UAW local leaders were briefed on the plans today by Vice President Cal Rapson in Cleveland.

The proposed accord also eliminates retirees’ coverage of vision care and ulcer medications such as AstraZeneca Plc’s Nexium and includes higher co-pays for drugs and doctor visits, the people said. GM has about 522,000 union retirees and dependents and 62,000 active UAW members. Only current workers vote on contracts.



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=ap3vWGv646dI&refer=home

[Old Coot]

1. Let the retirees rely on Medicare like everyone else. nt

[NEOhiodemocrat]

2. Except not all can

My husband had to retire from GM after two heart attacks, so he is 63 (65 in January '11) and we have a 19 year old college student and me covered under his policy also.

[Kolesar]

3. Lordstown?

I used to ride my bike past the factory when I was young.

[mbperrin]

4. Can they get back all the wages foregone to get these benefits

over a lifetime of work?

Or would that be too much for individuals and too little for corporations?