June 13, 2005 |
Posted By Diane Pfadenhauer |
GM's Benefits Burden
General Motors has announced its intent to reduce it workforce by 25,000 by 2008. Why? The cost of health care and pensions. An article here, notes that the cost of benefits amounts to approximately $1500 per car. According to the article:
"The problems go well beyond GM and the other automakers: Some of the nation's steelmakers, airlines, and old-line manufacturers - and even some municipalities - are also carrying large "legacy costs" - and may face similar layoff decisions."
This image from the article tells all: View this photo, and references the Survey of Employer-Sponsored Health Plans by Mercer Human Resources Consulting (available here) and Data on Private Sector Employers from the Employee Benefit Research Institute.
