BorgWarner to Cut Health Insurance for Striking Workers as Dispute Escalates

Industrial Action Enters Fourth Week as Union and Company Remain at Impasse

BorgWarner, an American automotive parts supplier, has announced that it will cut health insurance coverage for striking workers, effective immediately. The move comes as the labor dispute between the company and the United Auto Workers (UAW) union enters its fourth week with no resolution in sight. The UAW represents over 3,000 workers at BorgWarner's plants in Michigan, Ohio, and Indiana. The union went on strike on October 1 after rejecting the company's latest contract offer. The workers are seeking higher wages, improved benefits, and better working conditions.

Company Claims Economic Necessity

BorgWarner said in a statement that the decision to cut health insurance was made "with regret" but was necessary due to the financial impact of the strike. The company said that it had lost tens of millions of dollars since the strike began and that it could not continue to provide health insurance to workers who were not actively working. The UAW has condemned BorgWarner's decision, calling it a "heartless attack" on its members. The union said that the company could afford to pay its workers a fair wage and benefits and that it was using the strike as an excuse to cut costs.

Impact on Workers and Families

The loss of health insurance is a major blow to the striking workers and their families. Many of the workers rely on their employer-provided health insurance to cover the costs of doctor visits, prescription drugs, and other medical expenses. The UAW said it would do everything it could to help its members during this difficult time, including providing financial assistance and access to affordable health insurance plans.

Negotiations Continue

Negotiations between the UAW and BorgWarner are ongoing, but there has been little progress. The two sides remain far apart on several key issues, including wages, benefits, and working conditions. The strike is the latest in a series of labor disputes that have hit the auto industry in recent years. General Motors, Ford, and Fiat Chrysler have all faced strikes in the past few years, as workers demand better wages and benefits.

Outlook for Resolution

It is unclear how long the strike at BorgWarner will last. Both sides are dug in, and there is little sign of a compromise. The loss of health insurance for striking workers could further escalate the dispute and make it more difficult to reach a resolution.