The negotiations which are going on between UAW workers and General Motors have been costing Ford a lot of money.
Ford is responsible for the hiring of the most hourly workers in US and therefore they pay more for their health care. So the cost that GM negotiates in what is being seen as a master contract with the UAW will have a direct impact on the three companies in Detroit and impacts Form in a dissimilar proportion as per analysts.
GM had initially proposed the raising of their share of costs for health care which the hourly workers are paying from 3% to about 15% which was met with opposition from UAW. The union has argued that for many years the workers have been conceding the rise of pay and the other benefits for the protection of the health care costs for the workers who are employed in jobs that are physically demanding. GM has said that they have agreed to leave the share of health costs of the workers the way they are which is being considered as a big win for the union.
The insurance deal of the autoworkers is one of the best ones that remain in the country. As per the Centre for Automotive Research, the average worker in today’s time pays health care costs of 28%.
Analysts and experts have said that health care is an important issue which is essential when it comes to the UAW. Any company which tries in making the change in the cost of health care and shift the costs to employees would be giving an invitation to a strike.
Ford would be affected by this as it has the most number of hourly workers of any of the automaker.