GM’s Cave-In on Health Care Signals Trouble for Car Industry
- Effort to get UAW members to pay greater share was short-lived
- Picketing workers have coverage yanked until they end strike
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If General Motors Co.’s negotiations with the United Auto Workers are any indication, Detroit’s automakers may not have a prayer in their effort to rein in rising health-care costs.
As GM was nearing the expiration of its labor contract with the union last week, the carmaker sought to have hourly workers pay 15% of their health-care costs, according to people familiar with the talks. But by the time the company presented the UAW with a deadline offer, GM walked back the proposal and called for keeping contributions steady at about 4%, said the people, who asked not to be identified discussing private discussions.