Chrysler Group To Announce Reduced Employee Health Benefits
The Chrysler Group of DaimlerChrysler on Wednesday plans to announce a reduction in health benefits for salaried employees after a scheduled meeting of company officials to consider the plan, the Wall Street Journal reports. According to the Journal, individuals who are familiar with the plan called the proposed reduction in health benefits "modest," and one individual said that the proposal would include a reduction in prescription drug coverage.
In addition, another individual said the plan "wouldn't impose a cap to retiree health care coverage," but whether the proposal will include higher copayments or premiums remains "unclear," the Journal reports.
A DaimlerChrysler spokesperson declined to comment on the plan.
The move by Chrysler would follow similar efforts by General Motors and Ford Motor to reduce health care costs to "stay competitive with foreign auto makers," who offer "less-generous retirement plans," according to the Journal (Boudette/Stoll, Wall Street Journal, 3/15).
In related news, Ford this year for the first time will begin to charge employees an additional fee for health insurance for their spouses in some cases, the Detroit Free Press reports.
Under the plan, Ford employees will have to pay $110 per month for health insurance and $11 per month for dental insurance for their spouses when their spouses qualify for other coverage, according to company spokesperson Marcey Evans.
The plan, which Ford announced last December, will take effect on June 1 (Webster, Detroit Free Press, 3/15).