Health Care for Retirees Sticking Point at GM Talks

Dayton, Ohio

A strike by the UAW delayed the official opening of national talks between IUE-CWA and General Motors but the issues behind that strike are what are causing a significant drag on the progress of the Division's negotiations.

From the start, negotiators knew job security and health care would be the big ticket items.

Declaring that "our members' future needs to be clear," IUE-CWA President Jim Clark stated that the biggest question is "the future of the Moraine plant."

The current production run is scheduled to end in the next two years.

"Moraine's future is very important to IUE-CWA and the workers, but is really important to the community as well," said Clark.

"Many families depend on this plant for their livelihoods. Moraine is considered a flagship, a group that can make it and set the stage for the future."

What to do about retiree health care, or so-called "legacy" costs, also has been a sticking point. GM has been pushing a VEBA but the union is worried about a secure financing level.

"This plant has done everything it can to be productive, but it cannot solve a national health care crisis by itself," said Automotive Conference Board Chairman Willie Thorpe. At press time talks were ongoing.