Health tab to soar at GM

[Variance]

Health tab to soar at GM

Health care costs at General Motors Corp. and Ford Motor Co. will continue to rise at an alarming rate and are likely to spark a showdown with the United Auto Workers during upcoming contract talks, according to a new report released Monday by the respected credit-rating firm Fitch Inc.

Fitch looked at cash costs for health care at both GM and Ford and concluded that concessions made by the UAW in 2005 have not been enough to offset inflation-driven increases in health care spending, production cuts and the flow-back of workers from both automakers' former parts subsidiaries. Ford will see some modest gains as a result of its blue-collar buyout program, but both companies will continue to trend upward.

"The recent health care agreements with the UAW, changes to salaried health care programs and employee buyouts have pushed out the slope of the health care curve, but have done little to erase, or even narrow, the significant competitive disadvantage that these costs represent versus the transplant competition," Fitch stated in its report. "Health care will be the No. 1 issue in the upcoming labor talks, which are likely to be contentious."

The Detroit News

[PurdueGuy]

curious what the graph looks like when adjusted for inflation... I'm sure it's still upward, but would the adjustment make any noticeable dent?

[Clownzilla]

Well, I think the UAW members should pay half their health care costs. They would STILL be much better off than the vast majority of USA workers (with NO paid health care) plus GM would get some much needed help. It's time the UAW leaves their health care utopia and joins the harsh truth of the real world.

Edited February 28, 2007 by Clownzilla

[ellives]

I'm curious why GM's is so much higher than Ford's. Purely based on the number of units sold?

[Robert Hall]

I'm curious why GM's is so much higher than Ford's. Purely based on the number of units sold?

GM probably has a larger # of retired workers?

[ellives]

GM probably has a larger # of retired workers?

Sheesh will they hurry up and kick off already? (Just kidding.)

[sciguy_0504]

All workers should be paying at least 25% of their healthcare costs.

Edit: I also wonder if GM has looked at innovative solutions that other companies have employed such as privately run doctors offices and pharmacies on plant grounds? From what I understand some companies have lowered costs this way.

Edited February 28, 2007 by sciguy_0504

[FUTURE_OF_GM]

Here we go again, with the onslaught of bad news from "the street"

GM and Ford will NEVER be competitive with the "transplant companies" simply because the "transplant companies" will never retire as many people or give health care benefits as generous as the UAWs.

But, this will continue to be a HUGE thorn in Detroits side until something is done (Meaning either government intervention; yeah right! or concessions from the UAW) So, in that case (because the UAW would rather be ignorant and run the industry into the ground than buy their viagra themselves) it'll probably be the final nail in Detroits coffin.

Let the cheering begin.

[sciguy_0504]

Why should the government step in? No one forced GM to sign those obscene contracts that included equally obscene healthcare and retirement benefits. Involving government would do nothing but allow GM management and unions to get away with highway robbery, not to mention create a dangerous slope.

[Clownzilla]

Why should the government step in? No one forced GM to sign those obscene contracts that included equally obscene healthcare and retirement benefits. Involving government would do nothing but allow GM management and unions to get away with highway robbery, not to mention create a dangerous slope.

GM was forced to sign the contracts or face crippeling strikes. GM could do NOTHING but bow down to their demands. I think if GM were smart, they would start negotiations with governments for Mexican and Chinese factories. Now if GM plays the "pay half your health care or have no job" card, then the UAW would not be able to back GM into a corner.

[knightfan26917]

All workers should be paying at least 25% of their healthcare costs.

...and some of us pay a helk of a lot more than that.... See my "mini rant" here:

http://www.cheersandgears.com/forums/index...showtopic=15717

Cort:33swm."Mr Monte Carlo.Mr Road Trip".pig valve.pacemaker

PICS:lego.HO.model.MCinfo.RT.CHD = http://www.chevyasylum.com/cort

"There is more than one way to say exactly what you mean to say" ... Fastball ... 'Out Of My Mind'

[Dragon]

GM was forced to sign the contracts or face crippeling strikes. GM could do NOTHING but bow down to their demands. I think if GM were smart, they would start negotiations with governments for Mexican and Chinese factories. Now if GM plays the "pay half your health care or have no job" card, then the UAW would not be able to back GM into a corner.

crippling strikes then, or crippling costs now and probably long into the future

[bcs296]

It's time the UAW leaves their health care utopia and joins the harsh truth of the real world.

There is no statement that could ever be more true than this.

Considering the trouble that GM and Ford are in now, a growth rate like this in health care costs is scary.

[Christinhoods]

Oh,I have also heard about this from my friend..I guess it goes back to early eighties downturn when GM kept employees at a very high rate.

[hyperv6]

Why not force Goverment health car on the UAW like they did on just about everyone else.

Remember the UAW was left out of the health care fill as were some other high powered contributors. If it is so good for us then make the rest take it too. Give them the choice I got.

[SoCalCTS]

If only we had passed universal healthcare. GM and Chevy wouldnt have this disadvantage against foreign automakers. Its a shame that we didnt get the public option.

[CSpec]

If only the UAW wasn't so brazenly favored in the GM and Chrysler bailouts.

[Drew Dowdell]

If only the UAW wasn't so brazenly favored in the GM and Chrysler bailouts.

then.... what... we could have given more money to the banks?

[loki]

*this isn't the politics section*