As the GM-UAW strike slogs on towards the close of week two, GM is reportedly reversing its decision to pull health insurance coverage for striking hourly workers.
Last week, GM announced that it was shifting health insurance costs for striking workers to the United Auto Workers union during the ongoing GM-UAW strike, placing additional pressure on UAW strike funds. The reversal of that decision indicates progress in talks between the union and GM as the two groups work to put together a new labor contract following the expiration of the previous contract September 14th.
“Given the confusion around what was happening, we chose to work with our providers to ensure that the benefits would remain fully in place,” said GM spokesman Jim Cain.
Due to the highly intricate nature of health care coverage, GM said that UAW members’ coverage never actually lapsed, despite the fact GM announced it was pulling coverage mere days after the GM-UAW strike began.
Health care coverage is seen as one of the major sticking points in negotiations between GM and the UAW. It’s estimated that GM workers pay just 3 percent of health expenses, far below the 28 percent paid by the average U.S. worker.
GM’s move to pull health coverage last week was roundly criticized by union members and union leadership, as well as Democratic presidential candidates who visited the picket lines.
“There is no doubt that public sentiment sees these actions of GM as a shameful act,” said UAW vice president, Terry Dittes, in an open letter to GM on Thursday.
It’s estimated that GM allocates $1 billion annually in healthcare coverage for hourly workers.
The GM-UAW strike is currently the longest nationwide autoworker walkout in 30 years. Some analysts predict the strike could cost GM upwards of $100 million a day.
Negotiations between the UAW and GM are still ongoing, with recent reports indicating that committees have handed the reins over to top bargainers as of yesterday.
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Source: Reuters
Comments
I expect a an agreement soon. Maybe by this weekend.
I see holding you employer hostage when you already make more than 1/2 of the country does to be shameful Mr Tittes! Especially considering it is politically fueled and motivated!
Jealousy breeds contempt
A desire for fairness is not jealousy.
If these jobs are so great then why don’t you go to work for GM? You will get a real education. Get on that assembly line as see what it’s all about.
‘Sheeple’ like you that are uninformed of the facts and only read corporate propaganda are only hurting all American workers. What GM is doing to its workers is happening in corporations everywhere in America.
It has become american corporations against America workers.
Wake up America.
So GM estimates it has lost $500M due to the strike, taxable loss?
Universal healthcncare would clearly be a boon for American businesses like GM.
Maybe; maybe not. I can’t imagine any scenario that universal healthcare would not raise the corporate tax level.
Employees health care is paid monthly and was paid up to the end of the month. GM ‘pulled’ health care as another strong arm tactic to put more pressure on the union instead of making compromises. More greed.
This backfired and rightfully makes gm look bad. The ONLY reason they reinstated it is to try to save face with the public. They don’t give a shit about any employees as has been proven by their tactics over the last year regarding ‘unallocated’ plants and their unallocated employees.