IUE-CWA Charges GM with Shortchanging Retirees on Health Care Coverage

IUE-CWA has filed a complaint in federal bankruptcy court charging General Motors with shortchanging more than 5,000 pre-age 65 retirees on their retiree medical coverage. The complaint was filed in the Southern District of New York Federal Bankruptcy Court before Judge Robert Gerber. Gerber is the same judge who approved the 2009 landmark settlement between IUE-CWA and GM that established a health insurance plan for pre-age 65 retirees from GM and Delphi.

IUE-CWA President Jim Clark said, "IUE-CWA participants, as well as participants from other unions, are not getting the full benefit of the bargained agreement that GM reached with us in 2009. We are calling for GM to do the right thing now by holding off on their announced January 1, 2016, benefit reductions until this dispute is resolved."

IUE-CWA represents more than 10,000 active workers at GM and Delphi.

The 2009 settlement called for GM to set aside $467 million to deliver benefits to plan participants. GM, however, is failing to spend these dollars and in fact this year has left $95 million unspent while increasing costs to this group of retirees and imposing higher premiums, deductibles and out-of-pocket costs that should be necessary were GM meeting its full spending obligations under the agreement.