Ford Hourly Workers Say OK to New Health Care Benefit Plan

DETROIT, Dec 22, 2005; Reuters reported that workers at Ford Motor Co. narrowly ratified a deal that will help the automaker save $850 million annually in health-care expenses.

The United Auto Workers union said on Thursday 51 percent of its members voted in favor of the pact, which was announced earlier this month.

The Ford agreement was closely patterned after the October deal between the union and General Motors Corp..

A Ford spokeswoman did not immediately return a call seeking comment.

According to the deal, retirees will be required to pay a maximum of $752 per year for their family health-care coverage, including monthly premiums. Active Ford hourly employees will see higher drug co-payments and will have to forego future pay increases toward a retirement fund.

The ratification of the pact comes as Ford is finalizing a comprehensive restructuring strategy for its money-losing North American operations. So far this year, Ford's North American unit has lost more than $1.4 billion before taxes.

Ford expects to spend about $3.5 billion in health care this year, 13 percent more than in 2004. The automaker pays health benefits for some 550,000 white-collar workers, blue-collar workers, retirees, spouses and dependents.