GM: Healthcare key issue in contract talks

DETROIT, July 23 (UPI) -- Healthcare is a key issue in contract talks unionized U.S. autoworkers began Monday with General Motors Corp., GM's labor chief said.

"I think it's impossible to ignore the issue," chief negotiator Diana Tremblay, GM's vice president for labor relations for North America, said at a news conference.

She said the company spends $4.8 billion a year on healthcare, $3 billion for retirees, The New York Times reported.

The United Auto Workers also began negotiations with Ford Motor Co. Monday.

Its negotiations with Chrysler Group -- which DaimlerChrysler AG is selling to Cerberus Capital Management LP for $7.4 billion -- began last week.

The Detroit carmakers, which collectively lost $15 billion last year, say they must drastically cut costs to narrow their competitive gap with Japan's Toyota Motor Corp., Honda Motor Co. and other foreign competitors.

UAW President Ron Gettelfinger said his negotiators would be mindful of both current and former workers.

Ford's negotiation plans include a cut in total hourly labor costs by $21 an hour, The Detroit Free Press reported. That would bring Ford's wages and benefits down to a competitive $50 an hour.