Reality Sinks In
The industrial heartland of America has been given a lesson in the reality of the situation. General Motors and Chrysler have negotiated contract with the United Auto Workers and managed to hand back one of the disasters that had been incorporated into their contracts over the last 40 years; free or almost free health care from start to finish. The idea of the corporation being responsible for paying for your health care, cradle to grave, is almost as absurd as the government being in charge of your retirement. We all know how well that works.
The way that I understand the health care hand off is that the car company will put a number in excess of $billion in a fund that will be run by the unions. The unions will then be responsible for managing the health care of the employees and retirees. This puts the onus for using those dollars wisely in the hands of those who are spending them. Now I realize that the unions are only accepting this responsibility because they expect Hilary or Barack, when elected to the Presidency, to put the socialist program of universal health care into effect for all US citizens. Once the government takes over managing our health care system, the unions will once again be able to take the tough stance on the car companies. I hope I do not live to see socialized medicine in the US. Once price controls are put in place and medicine is metered out, it will be like waiting in line at Cedar Point for the premier coaster on a cloudy day. You just pray it does not rain before you get your ride or you will have wasted the price of admission in line with everyone else.
What amazes me is the short sightedness of the entire situation. Both management and labor have seen the train wreck coming since the gas shortages started in 1973. When the Japanese started invading our country with the economical cars and then started blowing American quality out of the water, it started the downward spiral we are currently trapped in. Going after a larger piece of the pie contract after contract only quickened the process as it inflated the cost of each vehicle and caused the car companies for ways to cut cost. Reducing research and development or using a cheaper material has not worked for US manufacturers as the loss of market share proves. Being an automotive supplier, I understand what happens when the car companies squeeze their supply base. It is evident in the number of bankruptcies that have happened in automotive.
So I am happy that the car companies have managed to enlighten their union and allow the reality of their current situation sink in. It will be a tough few next years for both management and labor but if the changes are not made now, GM, Ford and Chrysler will be remembered like Studebaker, Nash, and American Motors. Can anyone say Pacer?
Icool
Cobb
The way that I understand the health care hand off is that the car company will put a number in excess of $billion in a fund that will be run by the unions. The unions will then be responsible for managing the health care of the employees and retirees. This puts the onus for using those dollars wisely in the hands of those who are spending them. Now I realize that the unions are only accepting this responsibility because they expect Hilary or Barack, when elected to the Presidency, to put the socialist program of universal health care into effect for all US citizens. Once the government takes over managing our health care system, the unions will once again be able to take the tough stance on the car companies. I hope I do not live to see socialized medicine in the US. Once price controls are put in place and medicine is metered out, it will be like waiting in line at Cedar Point for the premier coaster on a cloudy day. You just pray it does not rain before you get your ride or you will have wasted the price of admission in line with everyone else.
What amazes me is the short sightedness of the entire situation. Both management and labor have seen the train wreck coming since the gas shortages started in 1973. When the Japanese started invading our country with the economical cars and then started blowing American quality out of the water, it started the downward spiral we are currently trapped in. Going after a larger piece of the pie contract after contract only quickened the process as it inflated the cost of each vehicle and caused the car companies for ways to cut cost. Reducing research and development or using a cheaper material has not worked for US manufacturers as the loss of market share proves. Being an automotive supplier, I understand what happens when the car companies squeeze their supply base. It is evident in the number of bankruptcies that have happened in automotive.
So I am happy that the car companies have managed to enlighten their union and allow the reality of their current situation sink in. It will be a tough few next years for both management and labor but if the changes are not made now, GM, Ford and Chrysler will be remembered like Studebaker, Nash, and American Motors. Can anyone say Pacer?
Icool
Cobb
posted by Cobb at
1:51 PM
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