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[0]Regardless of whether or not the Big Three get the bail-out money they're seeking, many U-S autoworkers have already been laid off because of sagging sales.
Although many factors have led to the carmakers' current crisis, one that's often cited is the cost of employee health care.
For some former General Motors workers, there's added hardship to come.Jill Dougherty explains.
JOSEPH STOCKER SPENT 31 YEARS OF HIS LIFE WORKING FOR GENERAL MOTORS.
ONE OF THE GREATEST BENEFITS -- ITS GENEROUS HEALTHCARE COVERAGE.
For what I've had, what my son, my wife, everything's been covered, everything's been great.
BUT AT THE END OF THIS YEAR, G.M. WILL END COVERAGE FOR STOCKER AND 100,000 OTHER WHITE-COLLAR RETIREES.
They've been cutting costs for years and years but this is rather drastic.
GENERAL MOTORS SAYS RETIREE HEALTHCARE COVERAGE IS A KEY REASON THE COMPANY IS IN TROUBLE.
TAKE THE CARS THEY PRODUCE, FOR EXAMPLE:
EACH ONE COMING OFF THE ASSEMBLY LINE NEEDS TO BE APPROXIMATELY 15-HUNDRED-DOLLARS MORE EXPENSIVE -- IN ORDER TO TO PAY FOR WORKERS' HEALTHCARE COSTS.... AND, ECONOMISTS SAY, TWO-THIRDS OF THAT-- ONE THOUSAND DOLLARS -- GOES TOWARD HEALTHCARE FOR RETIREES.
When they promised retiree health a long time ago they had a 70 percent market share nationwide. It appeared they were always going to grow. It appeared they were always going to have more workers than retirees. Today, there are twice as many retirees in their healthcare plan as there are workers. That is a fundamental problem.
IN 1970 G.M. HAD 400,000 UNION WORKERS. NOW, THERE ARE ONLY 73,000.
ANOTHER REASON U.S. AUTOMAKERS ARE IN TROUBLE ON HEALTHCARE , ECONOMISTS SAY, IS THEY HAVE TO DEAL WITH THE INEFFICIENT...AND EXPENSIVE U.S. HEALTHCARE SYSTEM.
G.M. HAS BARGAINED HARD WITH THE UNITED AUTO WORKERS UNION ON HEALTHCARE.
We negotiated a landmark labor agreement with the UAW last year that will enable us to virtually erase our competitive gap. And we've addressed pension and retiree health care costs in the U.S., on which we spent $103 billion over the last 15 years.
IN THAT DEAL, G.M. SHIFTED MANAGEMENT OF FUTURE RETIREE HEALTH BENEFITS FROM THE COMPANY -- TO A TRUST, MANAGED BY THE UNION. THAT TRUST IS SCHEDULED TO GO INTO EFFECT IN 2010.
BUT WITHOUT A BAILOUT -- WILL G.M. STILL BE AROUND IN TWO YEARS???
If there's no bailout for the auto companies you could really see a lot of unionized auto workers - early retirees - losing their coverage. You already have the big auto companies dropping health care coverage for their white color workers who don't have union contracts.
IN THE AUTO INDUSTRY, HEALTHCARE WAS PART OF THE BARGAIN BETWEEN WORKERS -- AND EMPLOYERS.
A PROMISE THAT COMPANIES SAY -- THEY NO LONGER CAN KEEP.
JILL DOUGHERTY, CNN WASHINGTON.
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