Union: Harley plans to stop paying health insurance benefits for striking workers |
CHARLES SCHILLINGER -- The York
Dispatch York Dispatch |
Article Last Updated:02/08/2007 07:45:38 AM EST |
Harley-Davidson plans to stop paying health
insurance benefits for striking workers as of Monday, according to a union
official.
At the end of a 35-minute negotiation session this afternoon, union representative Tom Boger said the company handed him a "COBRA letter," indicating its intention to stop paying premiums for the union membership's health plan. It didn't come as a shock for Boger, the business representative for the International Association of Machinists and Aerospace Workers Local 175. But he said he informed the company it wasn't "a positive step in the right direction." "The company's saying we're gonna make life miserable for you, like with the barriers," Boger said, referring to large concrete barriers the company placed in front of entrances to parking lots. "The barriers should have been a signal for us." Pat Sweeney, a spokeswoman for Harley-Davidson, said the company would not be releasing a statement. No new talks are planned for tomorrow, she said. Boger said he doesn't think there will be any more meetings this week, but is hopeful there will be more meetings next week. While he said the situation might appear to be worsening to those not able to hear the conversations at the negotiation table, he remained an optimist and said he and the lead negotiator for the company were building a relationship. "I still don't believe it will go the long distance," said Boger, when asked about the possibility of a prolonged strike. The union went on strike when its contract with Harley-Davidson expired midnight Thursday. The 2,800-member union handily voted down a proposal from the company, which was asking for concessions in health care benefits and a two-tier wage system, among other issues. The strike officially began at 12:01 a.m. Friday. Boger, sporting a "No Concessions" button on his jacket, said the company made a slight change to its proposal during talks today, but he declined to elaborate. He said it wasn't a major change. COBRA, which stands for Consolidated Omnibus Budget Reconciliation Act, refers to a 1986 federal law. The law requires that a company continue group health benefits should an employee stop working, be laid off or quit. Under COBRA, the employees typically must pay the total cost of their group health benefits premium, sometimes along with a fee charged by the company to continue administering the health plan. Under the expired contract, union members do not pay premiums for their health plan. Boger said he wasn't sure yet what the COBRA health plan premium will be for employees, and he had not yet read through all the paperwork handed over by the company on it. Reach Charles Schillinger at 505-5431 or cschillinger@yorkdispatch.com. |