| Gallery | Photo | News | Video |

Detroit 3 and UAW could create healthcare pool

Healthcare costs continue to multiply in the US with no clear end in sight, but the United Auto Workers and the Big Three are negotiating a way to rapid growth under control. As part of the latest contract talks, the union has an idea to create a healthcare pool across all of its members at Ford, General Motors, and FCA US. If accepted, the company-wide integration would spread out the expenses and create a massive member base for bargaining with insurance companies.

Both Ford and GM are at least considering the proposal, according to The Detroit News, and FCA US might be on board, as well. The idea is the work of current UAW president Dennis Williams and is based on the similar pool for the Voluntary Employee Beneficiary Association for retirees. "I've walked through this several ways; I just don't have any other answer," Williams said to The Detroit News. "I do believe this will work. It's worked with the VEBA."

Williams was elected UAW president last year and won by an overwhelming margin. He vowed no more concessions to automakers. In addition to healthcare, the two-tier wage system is another major talking point in the contract negotiation because it gives fewer benefits to entry-level workers. Higher wages are also a request.

Healthcare costs are a massive expense for automakers and are expected to reach over $2 billion this year, according to The Detroit News. The payments are up nearly 50 percent or more in just the last four years. Source

Read also: recent reviews, test drives, automotive trends and the latest news from the world of cars.

  • Ford's four new SUVs will include 'mini utility,' electric models

    Ford's four new SUVs will include 'mini utility,' electric models

    There was a palatable sense of excitement emanating from Ford's vice president of marketing, sales, and service this morning. Mark LaNeve gave the opening speech as the Chicago Auto Show today and delivered the goods on the Blue Oval's line of thinking about why now is exactly the right time to introduce four new SUVs to the market in the next four years. The plan for these new SUVs is for

  • History Reimagined: We test drive Hollywood Hot Rods' 1932 Ford

    History Reimagined: We test drive Hollywood Hot Rods' 1932 Ford

    "Remember, this is the 1950s." That's what I had to remind myself just after skidding halfway into an intersection in a $220,000 hot rod that a Norwegian customer had paid real money for. I'd only taken the wheel 300 feet before and couldn't have been doing 25 miles per hour when I locked up, but that tire-scorching moment taught me exactly what I was driving: an authentic hot rod. Things were a

  • Ford Fusion puts on its game face for NASCAR

    Ford Fusion puts on its game face for NASCAR

    Ford introduced a new Fusion at the Detroit Auto Show this week, bringing with it a stonking new Sport model with 325 horsepower under the hood. But that's not even the most powerful version of the new sedan. This is. Changes to this NASCAR version mirror those on the production sedan. While most of the hard points are determined by the racing regulations, the latest Fusion stock car features

  • Ford Cobra Jet Mustang blasts into SEMA [w/video]

    Ford Cobra Jet Mustang blasts into SEMA [w/video]

    It's become a tradition of SEMA: the unveiling of Ford's latest Cobra Jet Mustang drag racer. And trust us, the 2016 edition doesn't disappoint. Clad in blue, neon pink, and gray livery – with several prominent snakes – the 2016 Cobra Jet Mustang can run the quarter mile in eight seconds. Ford says about 75 percent of the 5.0-liter V8 engine components are shared with the Mustang GT, but the


Read more about:

Popular News
© 2014: All rights protected.