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Morning Briefing

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Friday, Sep 27 2019

Full Issue

GM Reverses Course And Agrees To Continue To Cover Striking Workers' Health Care

The automaker told the union after it went on strike Sept. 16 that it was kicking health care costs to the union, a common move during an autoworkers strike but one that UAW leaders said blindsided them.

In a significant reversal, General Motors has told the UAW that it will continue to pay for health coverage of striking workers.聽GM told the union after it went on strike Sept. 16 at company sites nationwide that it was kicking health care costs to the union, a move that UAW leaders said blindsided them, even though they had anticipated picking up those costs at some point through the strike fund. GM said Thursday it "has chosen to work with our providers to keep all benefits fully in place for striking hourly employees, so they have no disruption to their medical care, including vision, prescription and dental coverage. (Lawrence, 9/26)

鈥淭his is an attempt to do what鈥檚 right for our employees,鈥 GM spokesman Dan Flores said. It鈥檚 normal procedure in strikes for the cost of health care to shift from the company, which is largely self-insured, to the union. It says on the union website that the UAW will pick up the cost of the premiums. But the timing of when GM ends the health care and when the union takes over is at issue. The UAW said the benefits lapsed, but did not give a date. (Krisher, 9/26)

In a letter to G.M. on Thursday, Terry Dittes, the union vice president leading the negotiations, complained that the automaker was 鈥渢oying鈥 with the lives of union members with the back and forth on health coverage. 鈥淭here is no doubt that public sentiment sees these actions of G.M. as a shameful act!鈥 Mr. Dittes wrote. In the contract talks, the union is pushing G.M. to increase pay for temporary and less-senior workers, reopen plants it has idled and allot more future production to factories in the United States instead of those it operates in Mexico. G.M. would like to limit wage increases and cut health care costs. (Boudette, 9/26)

鈥淭here is no doubt that public sentiment see these actions of GM as a shameful act!鈥 Dittes wrote to GM management. 鈥淚t is time for GM to come to the bargaining table with an offer that reflects the hard work of our members who make you successful and will settle this strike on behalf of the hundreds of thousands of UAW families, and stop toying with our families鈥 health and well-being.鈥 (Welch, 9/26)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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