Canadian Auto Workers officials are working out details of a deal reached with General Motors Corp., Detroit, and Chrysler LLC, Auburn Hills, Mich., to establish a health-care trust in 2010 that would cover some 50,000 retired and active workers under the restructured auto manufacturers, said CAW economist Jim Stanford.
Mr. Stanford could not disclose how much the companies would put into the trust or when additional contributions would be made in coming years. “There will be gradual payments over time and a significant upfront contribution,” he said.
Mr. Stanford said the trust would cover dental, vision and long-term-care benefits not covered under public health care in Canada.
The establishment of the trust was negotiated under collective bargaining earlier this year when the companies began their restructurings, he said. The new labor agreements remain in effect through September 2012.
Spokesmen for Chrysler and GM could not be reached by press time.
The trust is similar to the voluntary employee beneficiary association established by the United Auto Workers in the United States.