GM reverses decision, will pay striking union workers' healthcare coverage

[turbinetree]

Source: Reuters

Business News
September 26, 2019 / 11:39 AM / Updated 12 minutes ago

2 Min Read

DETROIT (Reuters) - General Motors Co on Thursday reversed its decision not to pay for the healthcare coverage of its striking United Auto Workers union workers, citing confusion around the issue, a company spokesman said.

“Given the confusion around what was happening, we chose to work with our providers to ensure that the benefits would remain fully in place,” GM spokesman Jim Cain said.

The UAW had accused GM of blindsiding them with the decision to drop coverage during the strike, and some workers had claimed they could not pay their medical bills as a result. The union seized on this issue to rally public and political support for the striking workers.

“There is no doubt that public sentiment sees these actions of GM as a shameful act,” Terry Dittes, the UAW vice president in charge of the GM department, said on Thursday in a letter to GM that the union released publicly.

Read more: https://www.reuters.com/article/us-usa-autos-labor/gm-reverses-decision-will-pay-striking-union-workers-healthcare-coverage-idUSKBN1WB22T?il=0

[Wellstone ruled]

1. This is a major shift

in any Union Walk Out. Think about the public opinion shift . So who over ruled the Corporate Legal Team?

[turbinetree]

2. I think that this also a turning point..................

When we were on strike at the airlines and they came back and said that they were going to pay for health care, while we were out ...............the strike was over in 5 days or so, because of the economics, of not having people getting on planes and the maintainability of the aircraft was in trouble, supervision and scabs could not keep up, plus the fact, that GM is getting a lot of pressure from dealers and suppliers, again economics....................

[LiberalFighter]

3. Yep!

It is a lot easier to get public support when using social media too.

We were getting a lot of support from the community here in Fort Wayne.

[Wellstone ruled]

7. Well,the 10 k for GM talked about

a factor of 100 million per day loss. So many of GM dealers live on a shoe string due to GM's forcing them to rebuild Showrooms and Facilities to Corporate Specs or loose their Franchise.

Having had a Family Member running one these shops,know first hand what his challenges were. You are constantly reifying Inventory of slugs that you are required by Corporate to keep in inventory.

So,what has or is happening is,GM's Sales and Image is taking it in the shorts. Once you loose that market share,it is not going to come back.

[LiberalFighter]

4. Mary Barra was getting a lot of negative press in social media too.

[Mr.Bill]

5. Is it possible that the insurance company(s)

would have cancelled the policies and their would have been expenses for the car companies to reinstate the policies? I can't imagine them doing this unless it would actually save them money.

[LiberalFighter]

6. Maybe part of the negotiations also included

the requirement that GM pay the COBRA costs of the insurance because they terminated it before the end of the month.

[Wellstone ruled]

8. Could happen,

usual up front fee for reactivating a plan used to be some heavy duty money. Plus,the Insurance Companies are huge in holding Stocks and Bonds of their Customers.