Proof that the Grey Lady are avid B&P fans:
General Motors and the United Automobile Workers union have both been under enormous pressure to stand tough in their negotiations. It is encouraging that both sides are reportedly making good progress in hammering out a new national contract. They must come together if they are to salvage their futures and resolve the huge underlying issues that threaten Detroit’s Big Three automakers.
As negotiations between the U.A.W. and the auto companies continue, the automakers and their workers need to remain focused on how to regain a competitive edge against their rivals from Asia. Meanwhile, the United States government must urgently deal with the mushrooming health-insurance burden that puts many American companies at a competitive disadvantage.
As Bruno and I have been repeatedly stating, healthcare is a competitive issue nowadays. Save American business! Vote for national health care.
Now Playing: Episode 368
Terror in Mumbai, the collapse of Seattle banking and an update on the new Obama cabinet.
Links Mentioned: A timeline of the Mumbai carnage … SAM and WaMu … some early warning signs of trouble at the Seattle bank … Obama’s new Labor secretary?
The interesting thing about the deal is that, as I understand, it shifts the burden over to the unions to deal with their retirees themselves via a union-administered, GM-funded trust fund.
GM doesn’t need national health care if it can dump the problem on the unions. Caterpillar did the same thing a few years back, and, surprise! the money ran out pretty quickly. Maybe I’m being paranoid, but it looks like GM found a way to offload its health care liabilities without having to embrace national health care.
Granted, it’s just for retirees, but still, it seems like a step in the wrong direction, no?