Dennis Bingham, Local 87 president, said GM forced the union to accept the changes. He said an attorney for GM threatened not to “top up” pensions for hourly retirees after those pensions are left to the federally backed Pension Benefit Guarantee Corp. if the union did not agree to health coverage changes.
“I’ve never seen negotiations like this before in my life,” Bingham said.
Chris Lee, a GM spokesman, referred questions to a colleague who wasn’t available.
Often, when the PBGC recalculates pension payments under its legal limits, those payments fall. Retirees under both the Steelworkers and the IUE-CWA counted on GM making pension amounts whole.
The Steelworkers plan to share details with retirees at two meetings 9:30 a.m. and 1 p.m. Sept. 15 at the Delphi Vandalia plant, 250 Northwoods Blvd.
The Steelworkers represent about 150 workers at the Northwoods Delphi thermal products plant. That plant is one of eight plants Delphi intends to continue operating in the United States, the company has said.
The Steelworkers are responsible for about 5,000 local retirees, Bingham said.
Last week, another union, the IUE-CWA (International Union of Electronic Workers-Communication Workers of America), announced its own agreement with GM on health care coverage for retirees.
In agreements for both the Steelworkers and the IUE-CWA, coverage ceases for retirees older than 65 on Jan. 1, 2010.
Also as of Jan. 1, a new coverage plan for retirees younger than 65 will include monthly contributions of $95 for single payers, $140 for couples and $180 for families. The annual deductible will $2,500 for single coverage and $5,000 for family plans.
Vandalia Delphi workers make heating, ventilation and air conditioning parts. Asked about that plant’s future, Bingham said: “That’s a tough question to answer. We think it’s going to be there for a while.”
In August 2007, Local 87 members ratified a contract with Delphi, then under bankruptcy protection. The union at the time agreed to meet a lowered, total hourly wage package of $19.57. Starting wages were to be $8, the union said.
Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.
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