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U.S. Carmakers Signal Interest in Pooling Healthcare Coverage
Detroit's Big Three carmakers are increasingly interested in a United Auto Workers union suggestion that they scrap their company-run worker healthcare programs and adopt a single co-op plan, Reuters reports.
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Detroit's Big Three carmakers are increasingly interested in a United Auto Workers union suggestion that they scrap their company-run worker healthcare programs and adopt a single co-op plan, Reuters reports.
The UAW proposal would standardize coverage for U.S. workers at all three companies and give the carmakers more bargaining clout with healthcare service providers. On Thursday Fiat Chrysler Automobiles NV confirmed it is discussing the option with the UAW, describing it as "an idea we support."
The program should be able to reduce the $2.3 billion currently spent each year by the Big Three on annual healthcare for its active UAW workers, Reuters notes. Doing so would free up funds to make wage adjustments, especially those that narrow the gap in hourly pay between new hires and veteran workers, the union points out.
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