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General Motors stops paying for striking union workers' health insurance
General Motors (GM) has stopped paying for striking workers' health insurance, instead shifting insurance costs to the United Automobile Workers (UAW) union as its members continue to picket for a second day.
"We understand strikes are difficult and disruptive to families," GM said in an email to The Hill. "While on strike, some benefits shift to being funded by the union's strike fund, and in this case hourly employees are eligible for union-paid COBRA so their health care benefits can continue."
Terry Dittes, vice president in charge of the union's GM department, told union leaders Tuesday that the UAW would review its legal options following the decision, according to Reuters.
GM did not immediately respond to a request for comment from The Hill.
The strikers took to the picket line Monday, shutting down several plants and costing GM up to $90 million a day. It is the first strike in the auto industry since 2007, which was also against GM and lasted three days.
GM employees are demanding higher hourly wages, lump-sum payments and a better profit-sharing plan. The strikers are also demanding the company revamp its temporary worker system.
GM said it offered more than $7 billion in investments, more than 5,400 jobs, and improved wages and benefits. Negotiations began after the union contract expired over the weekend.
"Negotiations have resumed. Our goal remains to reach an agreement that builds a stronger future for our employees and our business," GM said in a statement Monday.
UAW members receive $250 a week from the union's strike fund during the negotiations.