800 Ford retirees formally object to deal that requires paying health premiums, deductibles.

There were also dozens of retirees in court to support the deal, most bussed in by the union. Some said they were afraid Ford's mounting financial woes could lead the company to bankruptcy and leave them without any retirement benefits.

Borman instructed attorneys on both sides to submit supporting documents by June 12 and said he would rule on the case after that date.

Under the terms of Ford's agreement with the union, which was narrowly approved by active UAW members in December, retirees will be required to pay monthly health insurance premiums and deductibles that could total up to $370 a year for individuals and $752 for a family. That figure can go up by as much as 3 percent annually. In addition, some workers would pay more for prescription drugs.

Hourly retirees at Ford are not required to pay any fees for health care coverage now. Most retirees or their surviving dependents who receive pensions of less than $8,000 will not have to pay the new fees either.

Ford spent $3.5 billion last year to provide health care to 590,000 people, including employees, retirees and dependants. Its health care costs have soared 67 percent since 2000 and the company now spends $1,100 per vehicle on health care -- more than what it spends on steel. Ford's health care obligation to retirees totals $35 billion.

If approved, the deal with the UAW would reduce that obligation by $5 billion, Abram said. It will also improve pretax profits by $650 million and bolster the company's cash position by $200 million annually.

Abram reminded the judge that one of his colleagues had approved a similar deal between the UAW and General Motors Corp. earlier this year. Without similar relief, he said Ford is at a competitive disadvantage.

The deal requires court approval because the UAW cannot negotiate on behalf of retirees. Some 800 of about 150,000 Ford retirees have filed formal objections to the deal. Some -- from as far away as Oregon -- made the trip to the federal courthouse in Detroit to voice their objections in person.

"I don't think it was fair for them to vote on my cuts," said James Lynch, who retired in 1997 from the Rouge River complex. "What good does it do to retire with benefits if they can turn around and take them away from you?"

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Bryce G. Hoffman / The Detroit News

You can reach Bryce Hoffman at (313) 222-2443 or bhoffman@detnews.com.

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