GM and the US Health Care Revolution
GM isn’t the first big company to shift their employee health care plan to the union. Caterpillar did it years ago and then had to re-do it a bit later. Because GM is more in the public eye they’re move will have a broader impact on the general public then Cat’s. The strategy that both companies and their workers have undertaken is one that US based manufacturers have pushing for years. Health care insurance is just too costly compared to the international competition which generally relies on the government to provide that support service.
Employer provided health care insurance as a percentage of the health insurance purchased in the US has been steadily slipping. This is a massive push and will cause many politicians to re-think their positions on the subject.
In a perverse way GM’s move has strengthened the United Auto Workers Union. They have taken on the responsibility of providing an important service that the GM workers consider when hiring on at GM. Companies who have successfully fought unions for years (WalMart), but now desire to shift their health care costs, will have no place to send them. Well, they could shift them to the government if they can’t find a union.
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