The United Auto Workers and Ford have reached a tentative deal on a health care trust. Ford is to fund a trust that will pay the health care expenses of their retirees.
An agreement made in 2007 has been modified. The former agreement required Ford to make multi-million dollar payments in cash to the trust. Now up to 50 percent of the payment to the trust can be made with Ford stock.
This agreement could act as an example for General Motors and Chrysler, who have to change the funding of their trusts under the terms of the government loans they have recently accepted.
This is the second agreement this month that Ford has reach with the UAW in terms of cost cutting initiatives. Earlier this month Ford and the UAW formed a deal on other contract compromises, after talks with GM and Chrysler temporarily broke down.
Ford is not seeking federal loans at this time.
No comments:
Post a Comment