DETROIT -- The U.S. District Court in Detroit approved a health care agreement between Ford Motor Co. and the UAW late last week. The ruling will allow Ford to carry out the cost-cutting plan as soon as next month, a spokeswoman said.
UAW members ratified the pact by a 51 percent majority last December. Some union members challenged the agreement in court.
Ford expects to save $650 million a year from the plan on a pretax basis, plus $200 million in cash. The deal is expected to reduce the company's health care liability for retirees by $5 billion.
Under the program, active UAW workers will forgo some future pay increases and face higher co-payments for prescription drugs. Ford UAW retirees with pension incomes of more than $8,000 a year will start paying monthly premiums, deductibles and co-payments for health care.
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