GM’s Termination of Striking Workers’ Health Benefits Irks UAW
It could end up being a point of contention in the negotiations between GM and the UAW for a new four-year contract.
(Bloomberg) -- Even the most perfunctory moves can get testy during a strike.
General Motors Co. has cut off health-care coverage for its striking members in a move that has the union’s attorneys looking to see if the automaker jumped the gun. The United Auto Workers website tells workers that they will be covered by a union-funded COBRA option during the strike, but not everyone got the memo -- some employees found out after the walkout started Sept. 15.
It could end up being a point of contention in the negotiations between GM and the UAW for a new four-year contract.
| Issue | GM’s Wants | UAW’s Wants |
|---|---|---|
| Pay | 2% raises in two years of the contract, and 2% lump-sum payments in the other two years | A step up from the 3% raises and 4% lump sums GM agreed to under its 2015 union contract |
| Health care | Initially pushed for union members to pay 15% of their health-care costs | Maintain the roughly 4% share of costs that members currently pay |
| Temps | About 7% of factory jobs are filled by temps; the carmaker would like to be able to increase this | Less use of temps and clearer path for these workers to be made permanent full-timers |
| Entry workers | Maintain hourly wages for new hires and allow them to reach top-scale pay in eight years | Expedite the time it takes for entry workers to reach top-scale pay to four years |
| Investment | Over $7 billion into eight facilities, including to make EV batteries at Ohio factory | Seeking a vehicle for the plant in Lordstown, Ohio, to build |
In a letter to members, Terry Dittes, vice president of the union’s GM department, said the UAW is providing members coverage, but he added the union’s attorneys are checking to see if GM is allowed to end medical coverage immediately. The union wants to know if the company must cover workers at least until the end of the month. Dittes wrote that GM’s action “will be reviewed by UAW Legal to see if any further action is required. In the meantime, know that our Union has you and your family covered!”
GM said only that during the strike, union benefits are covered by COBRA, which gives employees the right to continue their employer’s group help benefits for a limited period.
To contact the reporter on this story: David Welch in Southfield at dwelch12@bloomberg.net
To contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Chester Dawson
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