Well, the United Auto Workers and General Motors have reached a “tentative” work contract agreement, subject to approval by the individual members of the union, which is expected.
The big deal in this contract was the high cost of health insurance.
GM traded this cost for a guarantee of jobs at several key production plants for the four-year term of this contract. (Watch for substantial layoffs at GM in four years.)
While health insurance costs for most workers is about 35 percent of annual wages, it is only 7 percent for members of the UAW.
As a result, GM was paying out massive amounts of money for the healthcare costs of its workers.
GM wanted to raise the percentage of the cost of healthcare paid by the workers.
The workers knew when they had a good thing and wanted no changes to their healthcare costs.
The final agreement set up a healthcare trust fund financed by General Motors but to be administered by the UAW. (I don't see how this helps GM)
GM's initial input to this fund will be 35 billion dollars.
Then the union will have to figure out how to manage the costs of the workers healthcare thereafter.
But the union has a plan.
They expect to have to deal with this problem for just a couple of years.
You see, the UAW has endorsed Hillary Clinton for President of the United States.
She has a plan to change the healthcare system in this nation from the current free enterprise method to a “single payer” system administered by the federal government.
(the term “single payer” is a misnomer. In her plan, everybody pays – whether you want to or not.)
The union knows that if she is elected President, all healthcare programs in this country will be transferred to the federal government.
So then, rather than just the customers of General Motors paying for the healthcare costs of the union members, the customers of Toyota, Nissan, Ferrari, Volkswagen, and everybody else, will be paying for it.
In fact, ALL taxpayers will be paying for it.
That includes you.
Even if you don't own a car.
Even if you are on Social Security.
Even if you can't afford it.
If you work – you pay.
And you don't get to choose how much you pay.
So, guess what?
The union is working hard to get her elected.