Ford, UAW reach deal on health care
Ford Motor Co.’s active and retired autoworkers, who have long enjoyed some of the most generous benefits in the country, will have to pay more for their health care under a tentative agreement between the automaker and the United Auto Workers, the union said Wednesday.
The agreement could save Ford $850 million annually if it’s ratified by Ford’s active workers, the union said. Ratification votes must be completed by Dec. 22. Local unions can schedule votes anytime before then, the UAW said.
If the agreement is ratified, it will be the second time in two months that UAW-represented workers have agreed to pay more for their health care. General Motors Corp. workers voted for a similar deal last month by a 61 percent margin. The UAW said it also is considering a similar deal for DaimlerChrysler AG.
It’s the first time since 1982 that the UAW has agreed to contract changes outside its usual negotiation period with the Big Three, said Harley Shaiken, a professor and labor expert at the University of California at Berkeley. The UAW’s next contract negotiations with U.S. automakers are set for 2007.
UAW President Ron Gettelfinger said the union has agonized over the changes but believes they’re necessary to help U.S. automakers who are rapidly losing North American market share to foreign competitors.
Under the tentative agreement with Ford, retired autoworkers would start paying monthly contributions and yearly deductibles, up to a maximum of $370 a year for individuals and $752 for a family. They don’t pay such fees now.
Hourly workers won’t be required to pay deductibles or monthly contributions, but they will have to contribute to a trust for future health care expenses. Under the agreement, hourly workers would contribute a 3 percent wage increase scheduled for 2006 as well as portions of future cost-of-living adjustments. Ford would contribute $108 million to the trust by 2011.
Gold prices fall to weekly low
New York Gold prices fell to a weekly low Wednesday, after strong selling overnight by Japanese investors spilled over into the New York futures market.
The benchmark February contract settled $14.60 lower at $509.50 an ounce after trading in a $508.50 to $517.20 range throughout the day on the New York Mercantile Exchange. Spot gold fell $14.50 to settle at $506.50.
Traders said gold pulled down the rest of the precious metals, including March silver, which dipped to a two-week low of $8.420 an ounce.
Gold had recently been trading at 25-year highs, and silver had been trading at 18-year highs.
Amid a large long position held by investors on the Tokyo Commodity Exchange, heavy selling moved into gold overnight as the yen rallied against the dollar and the euro.
The strength of the yen against the dollar was seen as the impetus for the gold sell-off as the yen moved to a fresh seven-week high versus the dollar, marking the dollar’s biggest daily drop versus the yen in about five years.