GM case study

GM case study - General Motors A Health Care Crisis By:...

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General Motors A Health Care Crisis By: Jeremy Gilbreath Adam Finder Taylor Farley Dave Hanson
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When we were doing research on GM, how it tried to handle its problem we found some very interesting information. One thing that we found was that in 2005 one of the first ways that Gm tried, and counteract the mounting health care crisis was to layoff some of its employees. Some of the numbers that we found where quite staggering, one article said “expects to reduce its white-collar work force in North America by 1,000 to 2,000 employees this year and reduce the head count in some departments by more than 10 percent” (Garsten). After experimenting with employee layoffs as a quick fix for the health care problem it soon became apparent that it was a problem that would need a much bigger fix to see anything chance. What we found that GM has done to fix the problem is that just recently in 2007 they have set up a trust with the United Automotive Workers group (UWA) to set up a separate trust for GM’s hourly paid workers. This trust will be seeded by GM to the tune of 30 billion dollars. This trust is expected to take care of all of GM’s hourly paid workers health care and is expected to grow to a position where this will be considered a long and final term solution. 1 One of the questions that we were faced with was how we feel the US should handle the increasing problem of employers dealing with health care for their employees. We believe that it this question needs to be answered from both a political and a business point of view. It comes down to how your feel your government should be organized. Many countries that now do have
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GM case study - General Motors A Health Care Crisis By:...

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