GM’s Healthcare Double Standard
Bad ideology trumps good business
By Dave Lindorff
What a difference a border makes. General Motors executives say soaring health costs in their U.S. plants are forcing them to seek health benefits give-backs from unionized workers, yet they insist national healthcare is not an appropriate solution for America. As company spokeswoman Sherri Woodruff puts it, “GM thinks there has to be closer cooperation between the government and the private sector, but we don’t advocate a single-payer system for the U.S.”
Yet just across the Detroit River in Ontario, the company’s subsidiary—like the subsidiaries of Ford, DaimlerChrysler and other U.S. firms————strongly endorses Canada’s national health system.
“The Canadian plan has been a significant advantage for investing in Canada,” says GM Canada spokesman David Patterson, noting that in the United States, GM spends $1,400 per car on health benefits. Indeed, with the provinces sharing 75 percent of the cost of Canadian healthcare, it’s no surprise that GM, Ford and Chrysler have all been shifting car production across the border at such a rate that the name “Motor City” should belong to Windsor, not Detroit.
Just two years ago, GM Canada’s CEO Michael Grimaldi sent a letter co-signed by Canadian Autoworkers Union president Buzz Hargrave to a Crown Commission considering reforms of Canada’s 35-year-old national health program that said, “The public healthcare system significantly reduces total labour costs for automobile manufacturing firms, compared to their cost of equivalent private insurance services purchased by U.S.-based automakers.” That letter also said it was “vitally important that the publicly funded healthcare system be preserved and renewed, on the existing principles of universality, accessibility, portability, comprehensiveness and public administration,” and went on to call not just for preservation but for an “updated range of services.” CEOs of the Canadian units of Ford and DaimlerChrysler wrote similar encomiums endorsing the national health system.
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