UAW May Not Allow Health Concessions

United Auto Workers President Ron Gettelfinger addresses UAW members in Detroit, Tuesday, March 27, 2007. Gettelfinger warned companies not to misinterpret his union's cooperation as a sign of weakness and said the UAW would fight at the bargaining table, in the courts, politically and "if need be on the picket line." His comments came as the UAW kicked off a two-day meeting designed to set the union's bargaining agenda in the upcoming contract talks in the auto industry. (AP Photo/Carlos Osorio) (Carlos Osorio - AP)

DETROIT -- The head of the United Auto Workers said Wednesday that the union already has made health care concessions to General Motors Corp. and Ford Motor Co., and he implied that it won't give any more.

At the close of the union's two-day bargaining convention in downtown Detroit, President Ron Gettelfinger said the UAW made major concessions in 2005 that saved Ford and GM billions in long-term retiree health care obligations.

"We addressed health care in '05. You don't get two bites of the apple, do you?" he said.

"We've stepped up to the plate," Gettelfinger said when asked if the union would consider further concessions or taking on the health care obligations in a deal similar to one reached between the Goodyear Tire & Rubber Co. and the United Steelworkers.

When asked if the union wouldn't do any more, he replied: "I'm saying I'm not going to negotiate in the media, but they know what we did."

DaimlerChrysler AG's Chrysler Group didn't get the same concessions in 2005 because the UAW said the company was in better financial shape at the time. But Chrysler has since started losing money, and the UAW re-examined the company's books to determine if it would grant the same deal.

Gettelfinger said Tuesday that review is complete, but he wouldn't talk about the results.

"I wouldn't rule it in and I wouldn't rule it out at this time," he said. "We've been very open-minded to looking at it. It's just at this point in time not been resolved."

Under the 2005 agreement with GM, hourly workers contribute $1 per hour in future pay increases to a new fund to help pay for retirees' health coverage. Single retirees pay up to $370 a year in deductibles and fees for their coverage. And most retirees and all active hourly workers pay higher co-payments for prescription drugs.

In the deal with Ford, retired autoworkers will start paying monthly contributions, annual deductibles and co-payments for some medical services up to a maximum of $370 a year for individuals and $752 for a family.

Chrysler officials have said not having the same deal puts them at a competitive disadvantage to their Detroit counterparts.

GM, in its annual report filed with the U.S. Securities and Exchange Commission, said it will seek relief from its staggering $68 billion post-retirement hourly employee health care obligation in contract talks with the UAW.