New UAW Labor Pact With Fiat Chrysler Drops Health-Care Co-Operating

The United Auto Workers' new pact with Fiat Chrysler Automobiles N.V. ditches a health-care initiative advocated by union president Dennis Williams as a way to curb fast-rising medical costs, according to the UAW.

The UAW returned to the bargaining table this week to secure a new tentative agreement with the company after an earlier deal was widely rejected by members.

Mr. Williams had wanted to establish a health care co-op that would pool all active and retired factory workers into one purchasing group and then use the group's size as leverage to win cost savings from medical providers.

The co-op was included in the defeated labor deal but has since been eliminated in response to confusion among workers about how it would affect their medical benefits, the union said.

Local union officials are gathering in Detroit Friday to learn about the details of this latest agreement, which also raises pay for new hires and offers more details on product commitments, say people familiar with the matter. The UAW declined to comment until after union officials have voted on the proposal.

Write to Christina Rogers at [e-mail]

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October 09, 2015 13:25 ET (17:25 GMT)

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