Thursday, 12 April 2007
GM Autoworkers’ Health Plans? Not On The Table, Says Union President
Last year General Motors spent $4,800,000,000 on healthcare for 1.1 million employees, retirees, and dependents — equal to about $4364 apiece. And as GM tries to become more competitive in the auto market, healthcare is one of the places it’s looking to cut costs.
“Based on the magnitude of the cost, health care will continue to be a discussion issue for GM and the [United Auto Workers Union],” said Dan Flores, a GM spokesman.
Not a chance, says UAW president Ron Gettelfinger. “We addressed healthcare in ‘05,” referring to an agreement that allowed GM and Ford to start charging hourly employees for some of their health benefits. “You don't get two bites at the apple, do you?”
Some experts have suggested solving the issue by creating a UAW trust fund that would pay retiree benefits, instead of leaving GM to pay those benefits.
Gettelfinger and automotive executives have also publicly called for a government-sponsored universal healthcare program — a solution that would remove employers’ obligation to provide need to provide health coverage entirely.
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