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Big 3, UAW tackle health care

The United Auto Workers could end up taking responsibility for billions of dollars of retiree health care costs if Detroit's Big Three automakers can make the costly and complex transfer enticing for the union in this summer's contract talks, according to USA Today.

A deal might mirror Goodyear Tire and Rubber's recent union contract, under which Goodyear agreed to invest $1 billion into a fund controlled by the United Steelworkers to cover current and future retirees' health care expenses. Goodyear pushes a $1.2 billion liability off its balance sheet while the steelworkers' union gains an asset that protects retired workers' benefits and can't be touched by creditors should Goodyear ever file for bankruptcy.

Posted by   at 3:32 PM to Chrysler , Ford , GM , Unions | Permalink

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