GM case study diddle

GM case study diddle - General Motors A Health Care Crisis...

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General Motors: A Health Care Crisis By: Jeremy Gilbreath Adam Finder Taylor Farley Dave Hanson
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GM is a company that has withstood the element of time. Surviving for around one hundred years, the company has finally ran into a problem that could potentially end the industrial titan’s reign. Now more than ever GM and Rick Wagoner face the problem of health care in the United States. In this paper, we will cover GM’s health care issue by questioning if government action should be strengthened, if Rick Wagoner should use his status to change the health care system, what group should be favored towards benefits, and the messages about health care that GM currently sends to its employees. When we were doing research on GM, and how it tried to handle its employee health care problem, we found some very interesting information. One thing that we found was that in 2005 one of the first ways that Gm tried to 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 that GM expected “…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.” 1 . 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 require a much bigger fix to see anything really change. With further research, we found that GM has now taken much more dramatic steps to fix the problem. In 2007 they established a trust with the United Automotive Workers (UWA) to provide for the needs of GM’s hourly workers. This trust will be seeded by GM, to the tune of $30 billion. This trust is expected to take care of all of GM’s hourly paid workers health care and is expected to grow to a point where it will provide a long-term permanent solution. 2 1 Garston, Ed. "Automaker to Trim Up to 2000 Workers." Auto Insider
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