KHN Morning Briefing

Summaries of health policy coverage from major news organizations

UAW Suing GM Over $450 Million For Retiree Health Benefits

The Associated Press: "The United Auto Workers union has sued General Motors Corp., saying the automaker owes it $450 million for retiree health care" (4/7).

The Detroit Free Press: "[T]he UAW contends that GM was obligated through a labor contract and the bankruptcies of both GM and [its former parts division] Delphi to pay $450 million intended for the UAW's Voluntary Employee Beneficiary Association for Delphi workers. That trust, called a VEBA, is to provide for retiree health care. In its lawsuit, the UAW said GM in November rejected the UAW's written request for payment into the Delphi VEBA. Since then, GM 'has failed and refused to make the contractually required payment,' the union said in the filing. GM spokesman Tom Wilkinson declined to comment on the lawsuit Tuesday evening" (Gopwani, 4/7).

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