Posted on 10/19/2005 5:34:33 AM PDT by Our_Man_In_Gough_Island
Ford has confirmed that it expects to follow General Motors' (GM) lead and sign a similar deal with unions to reduce its retiree healthcare costs. GM said on Monday that it had secured an initial deal with the United Auto Workers, America's main carworkers' labour organisation.
"We expect comparable changes," Ford's chief operating officer Jim Padilla said from the Tokyo Motor Show.
Chrysler has already said that it hopes to follow GM's move.
Tough trading
GM is aiming to cut its retiree healthcare costs by about $15bn (£9bn).
Mr Padilla also admitted to reporters that the car market remained "very difficult" in the US because of high petrol prices and reduced consumer spending.
However, he said he expected conditions to improve towards the end of the year and into 2006.
The big three US carmakers - GM, Ford and Chrysler - have long sought to reduce their expensive healthcare obligations in the face of tough trading conditions.
As each has seen sales hit by increased competition from Japanese rivals and reduced consumer spending, their generous healthcare costs have been seen as an extra financial burden.
The costs to workers share of the premiums is rising. They have to pick up a larger portion of the premium than ever before. Some smaller offices don't offer medical insurance at all anymore.
While the illegals get all their health care for free they get hurt on the job they head for the nearest ER and get FREE treatment.
But in other than such extreme cases, healthcare is a service and not a right. It costs money.
It's unrealistic to expect that employers will offer nearly-free healthcare for ever.
The so-called Big Three (actually Toyota is bogger than Ford, now) are like the "deadwood media" and the Alphabet News Channels. They can't see their own end for their own butts.......
No wonder they've been losing market share for decades.
As long as they don't copy their cars & trucks.
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