General Electric's largest union, which staged a two-day walkout over health benefits in January, threatened to go on strike again next month as it began negotiations yesterday for a new contract covering 14,000 workers.þþWith General Electric pushing to increase employee contributions toward health coverage, union leaders said they might call a strike if G.E., one of the world's most profitable companies, pressed too hard on the issue.þþÿThe significance of these negotiations is the health care issue,ÿ said Ed Fire, president of the International Union of Electronic Workers-Communications Workers of America. ÿPeople are watching whether one of the very richest corporations on earth will force its workers to pay higher health care costs.ÿþþIn an interview, Mr. Fire said many unions and companies were closely following how his union and G.E. resolved the issue of fast-rising health care costs, widely viewed as the principal issue in labor negotiations nationwide.þþOfficials with the company and with the union said the other main issues in the talks, which began yesterday at a hotel in Midtown Manhattan, were pensions and job security. Mr. Fire said the union wanted a substantial raise, higher pensions and several measures that would preserve union jobs while making it easier for the union to organize nonunion G.E. workers. The union's membership at the company has fallen from 88,500 in 1969, a result of automation, downsizing and moving operations abroad.þþThe contract for the union and a second one, the United Electrical Radio and Machine Workers of America, representing nearly 3,000 employees, expires on June 25.þþGary Sheffer, G.E.'s chief spokesman, acknowledging that this round of negotiations could be difficult, said the union should dampen its expectations.þþÿWe're in the worst economy in about 10 years,ÿ Mr. Sheffer said in a telephone interview. ÿThis is not a time for unreasonable expectations or demands or breakthroughs on either side.ÿþþWhat worries the unions most is the company's demand for concessions on health coverage. Differences over that issue caused a two-day strike at 48 locations in 23 states in January when the two unions protested G.E.'s decision to exercise its option in midcontract to raise co-payments for doctors, hospitals and drugs. The company said the increased costs came to $200 a year per employee, with employees averaging $22 an hour.þþG.E. officials said the company's health costs increased to $1.4 billion last year, from $965 million in 1999, an increase of 45 percent. The cost of health care per worker will rise to $6,500 this year, from $4,140 in 1999, the company said.þþÿThe company has absorbed more than 90 percent of that increase,ÿ Mr. Sheffer said. ÿWe ask our employees to share a modest part of that.ÿþþUnion leaders say it is unfair for the company to ask its workers to shoulder 30 percent of health care costs, up from 19 percent at present. Mr. Fire said that G.E., which had $15.1 billion in profits last year, could easily pay the increased costs itself because its profits last year exceeded $45,000 per worker.þþÿIf General Electric continues to insist that I.U.E.-C.W.A. members accept the massive concessions in health care cost shifting G.E. has talked about, our members are prepared and will strike,ÿ Mr. Fire said at the bargaining session. ÿForcing our active and retired members to absorb 30 percent of the cost of health care is pie in the sky. That won't happen. Not without Armageddon.ÿþþMr. Fire said it was unfair for G.E. to demand higher health contributions when its top five officials earned a total of $62.5 million last year.þþBut Mr. Sheffer said: ÿI think all G.E. employees recognize that they're going to have to pay more for health care. It's what we and many other companies are facing.ÿþþ
Source: NY Times
