There is actually more "healthcare" in a US-made car then "steel". On average there is $1200 worth of healthcare for employees built into each US made vehicles by GM, Ford, Chrysler while there is only about $500 worth of raw steel used.

quote:

"GM, Ford and Chrysler have repeatedly said rising health care tabs represent one of their biggest cost disadvantages as they try to compete with foreign automakers, whose comparable U.S. obligations are minuscule.

Last year, GM, the world's largest automaker, spent $4.5 billion on medical care for 1.2 million U.S. employees, retirees and dependents.

Ford chief financial officer Allan Gilmour said recently the automaker spent $2.8 billion last year on health-care costs - more than it spent on steel for cars and trucks.

Gettelfinger insists the UAW will not budge from its position of not accepting more of the financial burden for workers and retirees. "We're not going to pick up premiums, we're not going to pick up copays, we're not going to pick up deductibles," he said last month. "

 

What would this Gettelfinger's attitude be if it boiled down to either pay the premiums now w/ your Big 3 paychecks, or pay on your own from unemployment benefits as we just went belly-up ?

I still stand by my "big picture" statement :

That if the execs of these companies were sharing in the pain, and all employees were to be required to pick up some or all of the health care tab, then I do not think there would be much grumbling.

That may be an overly optimistic statement, however - in the late 70's the Erie Lackawanna railroad was in dire straights & had a choice of merging w/ another R.R. with the accompanying loss of jobs, or disappear altogether.

Guess what happened ...

My .02.


Britt

 

I agree that Execs need to "Share the pain", since these leaders are paid genrously to "lead".

 

I work in the pension field at an actuarial consulting firm while going to school. You guys should see how much "pension" goes into a car too. Thousands...

 

Forget about "sharing the pain." Corporate execs need to learn how to start saying "NO" when it comes time for contract negotiations. From what I see so far, Detroit has caved to the UAW yet again. They're in good company, considering how Verizon management also gave their unions a lucrative status quo agreement after some fairly tough talk. The same goes for the entire traditional airline industry. They aren't willing to take the pain of bringing their cost structure in line with that of the startups.

The reality is clear: either stand up to labor or go out of business. If Detroit execs can't wring meaningful concessions from the UAW, then they should get the boot themselves. After all, if they can't match the industry leading transplants in terms of labor costs... why should they continue being in business.

Long after the "old line" American companies have all kicked the bucket, consumers will still be driving Toyotas and flying Southwest Airlines.

Of course, GM did manage to negotiate the closure of the assembly line for the Astro/Safari. They were only a decade behind in that move. Getting better.

 

Its obvious how little people know about the union and how it works and what it is about.....

 

Please enlighten us.

From a small business owner perspective I see many union managers as turf builders looking out primarily for themselves ...just like many business owners/managers. Where business is prepared to pay a fair days wage for a fair days work, and a worker is prepared to provide a fair days work for a fair days pay, everyone, including the consumer wins.

 

Speaking of the United Auto Workers...........I know about small unionized co.'s as well they are out for themselves.