Ford Plan Would Save $850 Million in Health-Care Costs

Auto union officials this week approved the Ford Motor Co.'s demands for lower annual health-care costs, and agreed to place before workers a plan that would save the automaker $850 million annually. The plan, which requires worker ratification, calls for active workers at Ford to divert 99 cents per hour in future wage increases to a health fund, while retirees will pay up to $752 yearly per family for medical coverage.
According to a report in the New York Times, the plan would help lower a health-care bill that Ford said will reach $3.5 billion this year, based on expenses the company pays for 550,000 active and retired hourly workers and dependents in the U.S. The union expects to announce ratification vote results on Dec. 22.