The Tech - Online EditionMIT's oldest and largest
newspaper & the first
newspaper published
on the web
Boston Weather: 48.0°F | Rain Fog/Mist

Big Three Automakers to Offer Benefits to Same-Sex Partners

By Frank Swoboda
THE WASHINGTON POST -- The nation’s Big Three automakers announced Thursday they will offer full health benefits to the same-sex domestic partners of their nearly 500,000 U.S. employees, a move hailed by gay rights activists as a potential tipping point in convincing other old economy employers to do the same.

The Ford Motor Co., General Motors Corp. and Daimler-Chrysler Corp. jointly announced that starting Aug. 1, they will offer the benefits to the domestic partners of all employees who had shared a “committed relationship for no less than six months.” The benefits are not being offered to unmarried heterosexual couples.

In a joint statement, the automakers said “offering health care benefits to same-sex domestic partners is consistent with each organization’s commitment to diversity in the workplace and is responsive to competitive trends among the Fortune 500 companies.”

The companies see the move as a way to help attract skilled workers in an increasingly tight labor market. Industry sources predicted that major foreign carmakers with operations in the U.S. would soon follow.

Monica Emerson, director of diversity for Daimler-Chrysler, said offering the new benefits, aside from being “the right thing to do,” was an effort to attract the best workers. “We really don’t know whether anyone has ever decided not to join us because of the lack of benefits, but clearly by taking this position we won’t be taking that risk,” she said.

Emerson said “all corporations who want to be competitive will find themselves forced to cast wider nets to attract the best and the brightest.”

David Murphy, vice president of human resources at Ford, said the new benefit was saying to prospective employees “look, we are a diverse company and we do recognize not only race and gender but sexual orientation.” He said Ford was sending a recruiting signal to the labor force.

Ford estimates its additional cost of the new benefit at less than $5 million a year. Ford’s annual health care budget is $2.4 billion.

Although a number of major corporations-including Lotus Corp., Microsoft Corp., The Walt Disney Co. and IBM already offer domestic partner health benefits, the announcement by the three automakers is the first time the major players in a single industry jointly took such action.

“There’s really nothing comparable,” said Kim Mills, educational director of the Human Rights Campaign, a gay rights group that has been pressing the health care issue. “We’ve never seen an entire industry announce domestic partner benefits on the same day.”

Major airlines such as United, American and US Airways have also adopted same sex benefit policies But Mills said the action by the auto companies “will be an enormous boost. The auto industry is not viewed as socially progressive when it comes to employment policy. I thought when the airlines went, that was huge, but this tops that,” she said.

A UAW spokesman said the new benefits were in keeping with the union’s history of negotiating new benefits for the American workforce. “Here’s the heart of the old economy industry and we’re doing it,” he said.

Winning domestic partner employer benefits has been a top priority of the nation’s gay rights groups for several years.

Mills said approximately 3,400 employers now offer domestic partner health benefits. Lotus Corp., the Boston-based computer software company was the first major publicly held corporation to offer the benefits nearly a decade ago. Since then other big name companies and organizations, including the Washington Post Co., have followed suit.

The Society of Human Resource Management said a benefits survey of its members last month showed that approximately 10 percent of the organizations they represent offer health benefits to same sex domestic partners. It said that was up from 7 percent in 1999.

An SHRM spokeswoman said surveys show that larger companies, those with more than 5,000 employees, were more apt to offer the benefits than smaller employers.