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General Motors says the company will now pay for health insurance workers on strike, nine days after saying that coverage would be cut.
In an email to the United Auto Workers union, GM said it would maintain the benefits because of what was called significant confusion among the members. The letter states that the health and well-being of employees are GM's top priorities.
"GM has chosen to work with its suppliers to maintain all benefits in place for striking employees, so that they do not experience any disruption in their medical care, including eye care coverage, prescriptions and dental care, "says the letter.
After the the strike has begun on September 16, the company said it would end the benefits, the fury of workers and politicians.
This is the standard procedure for health care costs to pass to the union during a strike. The website of United Auto Workers says the union would pay the premiums.
Jason Kaplan, a spokesman for the UAW, described the company's turnaround as a victory: "General Motors thought it could use the health care provided to tens of thousands of GM workers in UAW to force the union to yield to unfair concessions, tarnished reputation, "he said in a statement.
The strike of about 49,000 workers halted the production of more than 30 GM factories. Discussions continued Thursday.
The company's health benefits had been one of the main topics of discussion before the strike. GM spent about $ 900 million on health benefits for the estimated 49,000 hourly employees and their 69,000 dependents, the company said.
GM's initial offer had called for workers to cover 15% of their health costs, well below the national average of 28% but about five times higher than the 3% to 4% that workers now pay. of the automobile, according to Automotive News, cited by sources familiar with the talks.
The UAW rejected the proposal, prompting GM to step back and propose maintaining the status quo, the sector's publication said.
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