General Motors has notified the United Autoworkers Union that it can cut generous retiree medical coverage without returning to the bargaining table, but the UAW says "no way" and they plan to take legal action against GM.
Some legal experts say it's not clear whether GM has the legal right to reduce or eliminate health care coverage for its UAW retirees since the courts haven't ruled one way or the other.
The UAW retirees have the best coverage in the business. They pay no premiums or deductibles and pay small co-pays for prescription drugs. Their maximum out-of-pocket cost for health care is only $250 per year.
