Fairfield University business school dean and labor relations expert available to comment on repercussions of United Auto Workers deal with General Motors

Fairfield University business school dean and labor relations expert available to comment on repercussions of United Auto Workers deal with General Motors

Media Advisory

We may be witnessing a significant shift in the burden of health care costs from employer to employee, as the United Auto Workers union has agreed to cuts of about $15 billion in General Motors' retiree health-care liabilities and about $3 billion pre-tax in its annual employee health-care expense, said Norman Solomon, Ph.D., labor relations expert and dean of the Charles F. Dolan School of Business at Fairfield University.

"The UAW's willingness to do this in between contracts marks a major recognition by the union that if GM is to move forward the union will have to be flexible on the issue of health care costs," Dr. Solomon said. "In addition Delphi Corp., a major supplier to GM, has filed for Chapter 11 bankruptcy and has indicated that it seeks to drastically reduce future health care benefits to retirees."

The tentative deal between the UAW and GM was announced Monday, and will affect 750,000 U.S. hourly employees and dependents, retirees and surviving spouses. The agreement came on the heels of a big third-quarter loss for the automaker.

"The UAW's willingness to change will be watched closely not only by employers in other unionized industries but also by employers who are not unionized but who may currently provide generous health benefits," said Dr. Solomon, who co-authored the book, "The System of Industrial Relations in Canada (Fifth Edition)" (Prentice-Hall Canada 1996).

Dr. Solomon specializes in negotiation, industrial relations and labor-management relations. He earned a bachelor's degree from Cornell University in industrial and labor relations; and a master's degree and doctorate in industrial relations from the University of Wisconsin. He also holds a certificate in management and leadership in education from Harvard University.

To contact Dr. Solomon, please call the Charles F. Dolan School of Business at (203) 254-4000, ext. 4070.

Posted On: 10-17-2005 10:10 AM

Volume: 38 Number: 76