With details of a tentative agreement beginning to emerge, the president of General Electric's largest labor union said yesterday that it had achieved its goal of ensuring that workers would not shoulder a higher percentage of company health costs.þþEd Fire, the union's president, said that at the end of the four-year deal, G.E.'s 17,000 unionized workers would continue to pay, as they pay now, 18 percent of company health costs. ÿWe held the line on a critical issue,ÿ said Mr. Fire, president of the International Union of Electronic Workers-Communications Workers of America.þþBefore talks began in May, the company said its goal was to have workers shoulder 30 percent of overall health costs. One G.E. official said yesterday that workers would pay 18 percent of health care costs at the end of the proposed contract, although in the second year that would temporarily climb to 19 percent.þþShortly before a Monday morning strike deadline, G.E. reached agreement with Mr. Fire's union as well as with the United Electrical Radio and Machine Workers of America.þþEarly in the talks, executives at G.E., based in Fairfield, Conn., argued that it was only fair for workers to absorb more of the health costs because the company's health bill soared to $1.4 billion last year, from $965 million in 1999, a 45 percent increase. The cost of health care per worker will rise to $6,500 this year, from $4,140 in 1999, the company said.þþBut union officials asserted that the workers should not pay a higher percentage of health costs because General Electric, one of the world's most profitable companies, earned more than $45,000 in profits per employee last year.þþÿThe agreements provide good wages, pensions and benefits to G.E. workers while allowing our business to compete in tough markets,ÿ said William J. Conaty, G.E.'s senior vice president for human resources. ÿWe faced difficult issues — a challenging economy and rising health care costs — but everyone at the table remained focused on doing the right thing for our employees and G.E.ÿþþThe agreement calls for a 3 percent raise in the first year, 2.5 percent in years two and three, and 3 percent in year four. With the typical G.E. union member earning $21.70 an hour, a union flier said that at the end of four years, that union member's pay would rise by $3.52 an hour, including cost-of-living adjustments.þþOther unions and companies were looking to the General Electric talks to see what pattern it would set because many companies, facing skyrocketing health costs, were pressuring their unions to shoulder a higher percentage of health outlays.þþEchoing Mr. Fire, the United Automobile Workers said yesterday that it would oppose any efforts by the Big Three to shift more health care costs to their 292,000 auto workers.þþRon Gettelfinger, the union's president, said at a Detroit news conference that his union would not agree to such cost shifting in contract talks next month with General Motors, Ford and DaimlerChrysler. The companies' four-year contracts expire on Sept. 14. þþG.E. and Mr. Fire said that while the percentage workers contributed to health costs would remain the same, employee payments for health premiums would rise during the contract, with G.E. predicting that its health costs would rise by at least 30 percent over the four-year contract. The union's delegates are to vote on the contract today, with members of individual locals scheduled to vote early next week.þþIn a flier sent to union members, the International Union of Electronic Workers said that the settlement would cost the company $1.7 billion over four years and that the typical worker would receive $15,272 more in net pay over four years, after accounting for higher health outlays.þþÿSmall premium increases for members and their families will be more than offset by a wage and cost-of-living package that is considerably higher than other recent national contract settlements,ÿ the flier said.þþ
Source: NY Times
