Health Care Trust May Own 17.5% of General Motors


Published On: May 27th, 2009

GMHere’s a new way of underscoring the burden of health-care costs for U.S. employers: A health-care trust may actually own a significant part of General Motors.

Under the deal struck by GM and the United Auto Workers, 17.5% of the company’s shares will be owned by a union health-care trust, with an option for up to 20% over time, WSJ reports. That’s down from an earlier offer of 39%.

The independent trust was created as part of the UAW’s contract with GM in 2007. The company puts health-care money into the trust, taking retiree health obligations off of its balance sheet while giving the union the ability to manage the health benefits. But the trust isn’t in such good shape. The Washington Post reports based on a UAW document that GM committed $35 billion to the trust in 2007, but that the value of the assets has dropped to $10 billion amid market turmoil.

Now, in exchange for getting a 17.5% stake as well as other concessions from GM, the union is making health-care concessions of its own, WSJ explains. Retiree health benefits will be cut immediately, leaving thousands of retirees to pay more out-of-pocket for their health care.

The deal is similar to one Chrysler cut last month. In Chrysler’s case, the trust is supposed to own a whopping 55% of the company.

Photo: Associated Press


Go here to see the original:
Health Care Trust May Own 17.5% of General Motors

STOP PANIC ATTACKS - A Natural Technique To Stop Panic Attacks and Anxiety Fast!

Stop Panic Attacks
The technique I teach has been developed by me Joe Barry, a former sufferer of all too frequent panic attacks and GAD. I developed a completely natural approach to eliminating 100% of general anxiety and panic attacks. This may seem very hard to believe for someone who may have had this condition for some time but believe me the new information is now available to be free from anxiety. I will reveal the whole technique to you.

try-now

YouTube Video



Loading...


Did You Know Did you know:


In 2001, Asian Americans and Pacific Islanders had the highest tuberculosis case rate of all racial and ethnic populations in the United States

Related Posts

  • Americans Rate Their Own Health Care Highly, But Income Matters
    In general, Americans think pretty highly of their own health care, a new poll finds. But they’re far more pessimistic about the system as a whole. ..
  • General Motors Will Move to High-Deductible Insurance Plans
    General Motors, once famous for its top-notch, cradle-to-grave benefits, will offer only high-deductible health insurance to its salaried workers starting next year, Business Insurance reports . Besides setting up the inevitable joke (”Cadillac workers won’t get Cadillac insurance”) and carrying the inevitable symbolic resonance that goes with everything GM does, the shift is the latest..
  • When It Comes to Top-Quality Heart Attack Care, Culture Matters
    If you’re admitted to the hospital with a heart attack, your chances of survival may depend as much on such factors as how quickly the institution cycles through CEOs as on the type of treatment you receive. That’s the conclusion of a new report from Yale researchers who compared the characteristics of hospitals in the..
  • Health Blog Q&A: Surgeon General Regina Benjamin
    Why will this wave of obesity-fighting efforts work any better than previous attempts? ..
  • The Undecided May Make Difference in Health Care
    WSJ’s Jerry Seib discusses who will ultimately determine the fate of the health-care debate. ..
  • A.M. Vitals: Obama Focus Back on Health Care
    Health Care on the Agenda: Following mid-term elections, the Obama administration this week will once again focus on pushing the overhaul of the health care system, with the president giving a health-care speech on Wednesday, reports the WSJ . ..
Leave a comment
Comments are closed.
« The Drug Industry’s Talking Points on Health Reform Industry Pledge to Curb Health Costs May Run Into Legal Troubles »