OTHER NEWS - July 30, 1992

Navistar Seeks to Slash Retiree Medical Benefits: Navistar International Corp. asked a federal district court for permission to slash medical benefits for 40,000 retirees and their dependents. The company said the move would cut its health care costs by $90 million, or about 71%. Navistar’s proposed cuts would raise the cost to individual retirees by $330 to $3,400 annually. Retirees who currently receive essentially free health care would also lose dental, vision and hearing benefits under the proposal. Mary Moster, a spokeswoman for Navistar, said, “We believe we can unilaterally change our retiree health care” without consulting the company’s unions. However, she said, the company wanted a court’s ruling to forestall any suits challenging its actions.