Catherwood LibraryILR School

For the first time in its 72-year history, the United Automobile Workers union is entering national contract talks with more retirees than active workers in its ranks. That shift has the greatest impact on medical costs. Detroit automakers cover the health care expenses of both current and former union members ? more than 1.1 million of them combined ? and their dependents. That adds up to an annual bill of about $12 billion. The car companies? ability, or willingness, to continue paying those generous benefits, including negligible co-payments for drugs and doctor visits, will be a crucial sticking point when pivotal negotiations begin Friday between the U.A.W. and the auto companies.