Ford is reported to have asked a federal judge to approve a health-care agreement with the United Auto Workers that would save the company $200m annually by making retired autoworkers pay more for their health care.
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“Ford’s financial difficulties are dire,” Ford attorney Jonathan Abram said, according to Reuters. “The plan that’s being presented here is an extremely fair and generous plan.”
Abram asked Judge Paul Borman to approve the plan by July so Ford can maximise its savings.
Retirees objecting to the plan also testified.
Reuters saud The settlement would require retirees to pay deductibles and co-payments for the first time and is similar to a plan approved earlier this year by a different federal judge.
Under the plan, Ford would contribute $108m over three years to a fund to help pay for retirees’ health care. Active hourly workers would contribute about $2,000 annually to the same fund, Reuters added.
