Judge tells (bankrupt) Dana to continue talks with labor unions on health-care for retirees

[Omaha Steve]

http://www.fwdailynews.com/articles/2007/04/06/greater_fort_wayne/news/doc4616348e15ee7943913939.txt

Judge tells Dana to continue talks with labor unions
(Created: Friday, April 6, 2007 7:59 AM EDT)

(Bloomberg) — If bankrupt Dana Corp., succeeds in eliminating health-care benefits for retirees, it would cost 1,232 former Fort Wayne Dana workers and their spouses their insurance coverage.

U.S. Bankruptcy Judge Burton Lifland told the maker of automotive axles April 3 that it should continue to negotiate with its unions. He declined to render a decision at the end of a five-day hearing on whether to reject existing labor agreements and instead urged the United Auto Workers, United Steelworkers and Dana to reach agreement outside of his courtroom. He gave the parties until April 13 to file further papers in the case.

“Notwithstanding all the rhetoric here, the gate isn’t closed; we’re not at impasse,” Lifland said.

Dana, based in Toledo, Ohio, says it needs to cut costs as much as possible to exit bankruptcy as a viable business. In addition to seeking authority to reject the contracts, the company wants to be able to terminate retiree medical benefits for union workers.

Union attorney Bruce Simon said Dana should “count on the workers to strike and strike hard,” if Lifland allows Dana to end their collective-bargaining agreements.

Dana reached an accord to end health-care benefits for nonunion retirees and struck a deal with the International Association of Machinists earlier this month. It hasn’t been able to do the same with the UAW or USW, which are negotiating jointly.


FULL story at link.