Remember this? "GM drops health coverage for ex-workers 65 & over"

[Hannah Bell]

I'm seeing lots of discussions about GM's "crippling" health care burden, so I thought I'd remind you: Their white-collar retirees over 65 get MEDICARE & $76/mo. That's their "plan".

Besides which, GM made a deal with the union in 2007 to offload the rest of their healthcare "burden."



http://bulletin.aarp.org/states/md/articles/gms_pain_hits_retirees_automaker_drops_health_coverage_for_exworkers__and_older_affecting_hundreds_in_baltimore.html


"When Charles Miller went to work at General Motors' Broening Highway plant in 1954, he was attracted to the company by its reputation for good salaries and stellar benefits. He stayed for 31 years.

Since he retired...in 1985, he has gotten health coverage from the automaker...But now the 77-year-old Perry Hall resident and thousands of other white-collar GM retirees and their spouses or survivors, including hundreds in the Baltimore area, are losing that.

GM is the latest big company to abandon retiree health coverage, though it will continue to pay for those younger than 65.

...Bethlehem Steel workers...lost coverage after the steelmaker went bankrupt in 2003. General Growth Properties Inc., the Chicago real estate giant...dropped company-paid health and life insurance for Rouse retirees in 2005.

And in March, the Supreme Court made it easier for companies to reduce health benefits for millions of retirees..."

[cyclezealot]

1. Bush and wrecking company did their bidding. .

And the job is done.. The company excuse, you now have medicare parts b and d... Until we get a national health system, it's a part of the world of work..

[Hannah Bell]

2. G.M. says it spent 4.6 billion in 2007 on their "1 million employees & retirees & their dependents"

http://www.omgili.com/newsgroups/sci/environment/8f0a285c-ed53-4d2f-8970-777dde232bf7u29g2000progooglegroupscom.html


You're supposed to go - "OMG! 4.6 BILLION???!!!"


Their auto division took in 178 billion in revenues in 2007.

4.6 billion is 2.5% of revenues - for ALL their employees, retirees, & dependents. This is not high, percentage-wise, to ensure your entire workforce + retirees.

That's NOT just in the US. Their total global workforce = 266,000 people in 2008. US retirees =
about 400,000, & more dying than being created.

http://zenobank.com/index.php?symbol=GM&page=quotesearch


So if you paid every one of those million employees, retirees & dependents 40K, & covered their healthcare to the tune of 4.6 billion per year, that equals 44.6 billion, or 25% of revenues.


25% labor cost. This is CRISIS?

I don't think so.

They're lying to you, they're FUCKING their workers.

[ColbertWatcher]

3. "They're lying to you, they're FUCKING their workers." It's amazing what one finds out ...

... when one does the math.

So, have you heard the rumor that if the Big Three go bankrupt they can screw the retirees out of their pension? Can they do that?

[Hannah Bell]

4. According to their 2007 annual report, the pensions are overfunded - they've

been putting 7 billion/year into them for awhile, & don't expect to have to make any significant contributions to them in the near future.

But if they go into bankruptcy, I imagine all bets are off.

I read their annual report. They made some hundred million profit on their auto division in 2007. They lost a billion on mortgage financing, & they "lost" 38 billion by booking some "one-time" tax credity thing in 3 countries. Which, supposedly, didn't have any impact on their financial situation, which I read as "not a real loss".

I didn't quite understand it, but my impression was that they were able to save up previous "losses" & book them whenever it was convenient for their tax/negotiating picture.


Right now I'm leaning to the theory that they GM, at least, *wants* to go into bankuptcy, for the reasons you imply.

Seems suspicious to me that the solons who formerly bent over backward to give the big 3 everything they wanted (e.g. lower emission standards) are suddenly making them drive to DC to be publicly chastised.

I'm also of the opinion there's been a long-standing back-door deal between GM & Toyota to manipulate market conditions.

But, you know, I'm a conspiracy nut. :>) Thanks for bumping my posts, though. You seem to be one of the few who find them interesting. In the present case, I'm kind of surprised how few.

[Donnachaidh]

6. uhh, I don't think we should be financing ANY of their Mortgage Division

Lost a billion in a business that has NOTHING to do with making cars? Make any loan to them contingent on their SPINNING OFF the mortgage division.

[ColbertWatcher]

7. Part of the reason people don't kick threads is when they're posted.

I've found threads that are seen by East coasters at around 6 a.m. and just before Countdown starts get more attention than at any other time.

Another reason your threads may not get a lot of conversation is that your arguments are complete; there's little to argue.

I remember one of your threads about where profit comes from got pretty wild, but that was because someone disagreed with you.

It's hard to get conversations going when people either don't want to, or have no reason to disagree.

This is why I post a lot of polls!

[Hannah Bell]

9. Reading through the threads about how GM's healthcare costs were "killing" them, I thought

the numbers might surprise some, though.

But thanks, got some more notice.

[ColbertWatcher]

10. I don't think anyone on DU would argue with the healthcare issue.

I think everyone here understands that if America had MSI (medical security insurance) no company would have problems.

[bobbolink]

11. Why, then would that account for TWO lousy recommends????

More likely, I believe people would rather FIGHT.... and HASSLE, than do some serious thinking through of facts and issues.

If you will notice, kindness here is often ignored... snarkiness gets LOTS of response.

[aquart]

5. Yes.

Our laws and courts have repeatedly failed to protect pensions.

[ColbertWatcher]

8. I hate that pensions get dumped before the CEO's bonuses. n/t

[kath]

12. yeah - LOVELY the way that works, isn't it?

selfish fucking scumsucking bastids.

[ColbertWatcher]

13. There's got to be a way for the corporation (or its officers) to be held accountable for ...

... that kind of theft!

The pensions existed long before the CEO's contract.

Damn I hate this crap!