Benefit certainty far better than a promise.(Opinions)(Brief article)

Business Insurance, July, 2007

RETIREE HEALTH CARE funding agreements between two major employers and unions representing employees covered by collective bargaining agreements show promising corporate and organized labor realism about the benefits. As we report on page 1, automotive parts manufacturer Dana Corp. and the United Steelworkers and the United Auto Workers unions recently reached an agreement in which Dana will contribute hundreds of millions of dollars to special tax-exempt trusts, known as voluntary employee beneficiary associations, to fund retiree health care obligations.

After that, Dana will have no further obligation to contribute or provide health care benefits to current or future UAW- or USW-represented retirees. The agreement follows a nearly identical accord...

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