GM cancels healthcare

Specop_007 · Expert Joined: Aug 12, 2004 Posts: 6265

Thats gonna leave a mark for the retiree's! Although its not entirely unexpected.

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Shell-shocked GM retirees react: 'This is a knife stab in the back'

After years of getting generous coverage, retirees from salaried jobs at General Motors Corp. reacted angrily Tuesday to the announcement that GM was ending their health benefits.

"I'm disappointed in the lifetime promise GM made to us," said John Fleming, 67, of Rochester Hills, a retired information system auditor. "We've been wiped off the books completely."

Fleming was among the shell-shocked GM retirees wondering about what they'd do next for health care, following the surprise announcement that is part of GM's latest cost-cutting plan.
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highlander · Posted: Wed Jul 16, 2008 9:32 am Post subject: Re: GM cancels healthcare

So how many more companies will jettison their healthcare to the federal government through bankruptcy or other means. What will be the tipping point when congress will say we might as well have a nationalized health care system, since we are getting it in pieces anyway?
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ohcomeon · Heavy Crude Joined: Jun 10, 2006 Posts: 132 Location: USA

I feel for these people, but we've given corporations too much credit for having human qualities if we expect commitment from a group of people whose primary objective is to make money for themselves while they hide behind the corporation and "its" needs. Maybe I'm getting cynical in my years but anyone who is shocked by this, especially a GM employee, just amazes me. They're right. It's a knife-stab. But not a shock to most of us.

CarlosFerreira · Posted: Wed Jul 16, 2008 9:37 am Post subject: Re: GM cancels healthcare

OK, here's a commie opinion. Throw a brick at me if I get over the line.

The US Govt. dropped the whole idea of universal healthcare and social security. Companies took it in (asked for it) and started offering healthcare/dental care as part os contracts. Bottom line: if you make too much noise, the company will drop healthcare for you and you will die.

Strike, ask for more money, or don't work as much as we want, and you will die.

It's a social control thing. Being European, I can't understand this! Although, even in Europe, people are talking about a silly ideas as this one.

It's immoral, should be illegal. I will never buy an Opel.

emersonbiggins · Posted: Wed Jul 16, 2008 9:43 am Post subject: Re: GM cancels healthcare

GM should obviously cover occupational-related adverse health effects, but I see no reason that they should continue health insurance for those producing nothing for the company in return.
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eastbay · Posted: Wed Jul 16, 2008 9:54 am Post subject: Re: GM cancels healthcare

kevinr · Coal Joined: Jul 01, 2008 Posts: 17

Not a shock to me at all. If GM continues to pay healthcare for it's retirees they go bankrupt, thus discontinuing health coverage for it's retirees.

kpeavey · Expert Joined: Oct 04, 2004 Posts: 1313

smallpoxgirl · Moderator Joined: Nov 08, 2004 Posts: 6278

Everyone thinks health care is a growth sector right now. I've got to say, I don't see it. I think this sort of thing is going to become a lot more common. I think that companies and individuals are going to discover that health insurance was something they could cut after all. It's going to require a new paradigm in American health care though. It's going to require an earnest push to abandon high-tech medicine and rediscover affordable medicine. It's also going to require, I think, that we follow Shakespear's advice vis-a-via malpractice lawyers. The technophilic health care model that the US, and to a lesser extent Europe have been pursuing, really needs to come to an end, and this may be the kind of thing that finally motivates us to make it happen.
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CarlosFerreira · Posted: Wed Jul 16, 2008 10:08 am Post subject: Re: GM cancels healthcare

emersonbiggins · Posted: Wed Jul 16, 2008 10:27 am Post subject: Re: GM cancels healthcare

Tyler_JC · Posted: Wed Jul 16, 2008 10:33 am Post subject: Re: GM cancels healthcare

If the choice is between losing the entire company or cutting a few benefits...who is going to fault GM for trying to save itself?

What good does a bankrupt GM do for its pensioners?

Nobody likes making cuts but sometimes you have to lose a finger to save the hand.

It's only a matter of time before the company goes completely bankrupt and is bought out by Toyota for 25 cents a share. Cool

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eastbay · Posted: Wed Jul 16, 2008 10:42 am Post subject: Re: GM cancels healthcare

anthem · Heavy Crude Joined: Apr 02, 2005 Posts: 103

I tend to agree with SmallPoxGirl.. it is time for extensive reform of our so-called health care system. Most of the damn doctors are not really healing or curing anyone, just treating this or that symptom. Doctors and big pharma are ramming as many drugs down our throats as they can, and people are still dying of the same things they have been for the past 60 years, heart disease and cancer. What did I read recently, our 5% of the world's population consumes 75% of the prescription drugs produced? Outrageous.

My wife and I just had our third child, and looking at the detailed bill from the hospital one can definitely see where the train derailed as far as health care. We were billed $64 each and every hour just for the nurse to come in and "check" on my wife, which really was just, "hey, do you need anything". Stupid as hell. Of course, my insurance covered it. That's why GM can't afford health coverage for its employees and why this could eventually (if something else didn't do it first) collapse our entire economy.

My wife said, "What would we do if we didn't have insurance and had no money?" I said, "Let the government pay. If we had a little money, then we would be in trouble." I have heard, though, that when push comes to shove, if one is paying cash and can only pay cash, hospitals will take pennies on the (billed) dollar.
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TreeFarmer · Heavy Crude Joined: Jun 26, 2007 Posts: 347

This is a problem I've been aware of for 20+ years but, as you might imagine, I'm pretty much a nobody so my voice is easily ignored if it is heard at all.

GM's mistake, and other companies as well, was making long-term commitments that were basically open ended. When GM promised healthcare until death they had no idea how long that would be as well as what it would cost per year along the way.

I don't believe that any company should make long-tem promises to employees. Compensation should be in the form of salary, current benefits while you work such as healthcare, and then contributions to the employee's own retirement plan such as a 401k. That way the company would always stay current with its obligations and would never find itself facing a multi-million or multi-billion dollar shortfall in its ability to meet previous promises.

While I'm very much a right winger, I'd also love to see companies limit executive compensation to some multiple of what front-line workers earn. Now, that multiple might be 100x, for example if a typical fornt-line worker makes 50,000 then the CEO could make 5,000,000. That would be a lot of money but it would also spread some of the wealth around while rewarding the person who made it to the top. Of course, this would be voluntary, no government legislation to make it mandatory.

TF