November 26, 2014
STERLING HEIGHTS, Mich. (AP) - The United Auto Workers union
says it intends to sell off its 55-percent stake in the new
Chrysler as soon as possible to help cover the trust fund that be
will responsible for retiree health care as of next year.
The total retiree health-care obligation is nearly $11 billion.
That covers some 82,000 Chrysler retirees plus current workers who
will eventually retire.
Union President Ron Gettelfinger says the fund will be starting
with $1.5 billion from an existing company health-care trust and
will get $300 million from Chrysler next year. He says he's
confident it will work out long term, but acknowledges that
initially, the fund "will be on life support" and may have to
further trim benefits. Dental and vision coverage have already been