I have been watching the continuing saga of the Big Three automakers in the news here of late, and I listen to the their optimistic views of how to turn the tide of market share losses back to their favor. I listened to the experts spout off about the fact that these major US Corporations are on their last gasp for air, if they don't make the correct changes, they'll be belly up.
Then, the report disclosed the most shocking part of the problems faced by these companies: a health care bill totalling $12 Billion a year for their current and retired employees. What these numbers say to me is that the health care industry has these companies in over the barrel and as a result, they are now in a life and death struggle for the very survival of the businesses.
I would suggest that it may be cheaper for the auto makers to build their own hospitals, hire their own doctors and staff and manage the facility themselves. Another part of these health care costs that should be examined is the portion that is collected by the Unions. I found in some cases that the Union charges the employers for the health care benefit and that charge was two or more times higher than the health care policies being sold by the insurance companies on the street. The Unions were also getting the lower priced policy and then they would pocket the difference to help them with their operations.
That practice is not illegal or even considered unusual. After all, Unions are businesses too at the end of the day, and they have to make money to operate just like everyone else. But, when it becomes evident that the lifeline for your business, your family and your coworkers has reached a point of such duress that the business could collaspe, it become incumbent upon everyone at every level to make whatever sacrifices can be made so that the entire extended family will survive to build another day.
WE CAN DO IT IF WE ONLY WANTED TO BAD ENOUGH
This brings me to the issue of what the Big Three are manufacturing. Frankly, they have been setting the stage for this disaster for many years by refusing to accept the fact that one day, gas is going to run out, or it will reach $5 to $7 a gallon within the next 5 years and that American consumers would rather get their teeth pulled than pay $200 to fill up their land barges, regardless of how comfy the seats are.
It would be a refreshing change to see Detroit leading the pack in technological advances that will eliminate the need for fossil fuels altogther while producing a car that doesn't cost more than my grandparents first and second homes did!
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