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	<title>Pop + Politics &#187; labor unions</title>
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		<title>Was General Motors&#8217; Ex-Ceo Rick Wagoner Right?</title>
		<link>http://www.popandpolitics.com/2009/04/23/was-general-motors-ex-ceo-rick-wagoner-right/</link>
		<comments>http://www.popandpolitics.com/2009/04/23/was-general-motors-ex-ceo-rick-wagoner-right/#comments</comments>
		<pubDate>Thu, 23 Apr 2009 21:17:10 +0000</pubDate>
		<dc:creator>Dave Saldana</dc:creator>
				<category><![CDATA[Politics]]></category>
		<category><![CDATA[american healthcare system]]></category>
		<category><![CDATA[general motors ceo]]></category>
		<category><![CDATA[GM's annual bill for health care]]></category>
		<category><![CDATA[labor unions]]></category>
		<category><![CDATA[paul krugman]]></category>
		<category><![CDATA[rick wagoner]]></category>
		<category><![CDATA[rick wagoner right about healthcare]]></category>

		<guid isPermaLink="false">http://www.popandpolitics.com/?p=12172</guid>
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I seriously doubt youâ€™d find anyone willing to shed tears over the sacking of former General Motors CEO Rick Wagoner. His forced retirement pushed out by the Obama administration with its $20 million payout will make his golden years a bit more golden than the tens of thousands of GM employees who were shown the [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.popandpolitics.com/wp-content/uploads/2009/04/wagoner.jpg"><img class="alignnone size-full wp-image-12173" title="wagoner" src="http://www.popandpolitics.com/wp-content/uploads/2009/04/wagoner.jpg" alt="wagoner" width="395" height="264" /></a></p>
<p>I seriously doubt youâ€™d find anyone willing to shed tears over the sacking of former General Motors CEO Rick Wagoner. His forced retirement pushed out by the Obama administration with its $20 million payout will make his golden years a bit more golden than the tens of thousands of GM employees who were shown the door as a result of Wagonerâ€™s mostly feckless leadership.</p>
<p>But let me say this: Wagoner was right.<span> </span>Absolutely.</p>
<p>Not about wagering the companyâ€™s fate on impractical, inefficient SUVs. That was dumb long before gas reached $4 per gallon. Not when he strong-armed unions into give-backs on wages and benefits, and then shuttered their factories anyway. And not when he dragged his feet on electric- and hybrid-powered consumer vehicles. Or on any of the dozens of other bonehead decisions he presided over that hastened the downfall of what was once the cornerstone of the American manufacturing-based economy.</p>
<p>He was right about this: if the government cannot resolve the crisis of spiraling health care costs and its impact on the business of doing business in America, soon there will be no business.</p>
<p>In August 2004, Wagoner reportedly said that regardless of who won the presidential election two months later, <a href="http://www.just-auto.com/article.aspx?id=70485">fixing health care</a> would have to be a top priority because paying for health benefits for employees, dependents and retirees was putting American carmakers at a severe disadvantage to foreign competitors.Shortly after President George W. Bushâ€™s second inauguration, Wagoner <a href="http://www.naturalnews.com/004785.html">repeated the point</a> in Chicago. GMâ€™s $5.2 billion annual bill for health care, Wagoner said, raised the price tag for a new GM vehicle by $1,500. Asian and European car manufacturers donâ€™t face the same expenses because their governments pick up a huge portion of health care and pension costs, Wagoner explained.</p>
<p>And Wagoner wasnâ€™t alone.<span> </span>Verizon CEO Ivan Seidenberg said in 2004 that health care for his companyâ€™s 800,000 employees, retirees and dependents came at a cost of <a> $3 billion</a><a href="http://newscenter.verizon.com/leadership/speeches/exec-club-chicago-10262004.html">.</a><span> </span>  In fact, a range of employers from <a href="http://www.nfib.com/tabid/215/Default.aspx">small businesses</a> to <a href="http://www.nam.org/PolicyIssueInformation/IssueSummaries.aspx#H">large-scale </a><a href="http://www.nam.org/PolicyIssueInformation/IssueSummaries.aspx#H">manufacturers</a> are calling for health care reform.<span><br />
</span></p>
<p>And you donâ€™t even have to ask about <a href="http://www.changetowin.org/issues/health-care.html ">labor</a> <a href="http://www.aflcio.org/issues/healthcare/">unions</a>, do you?<span> </span>Nobel laureate <a href="http://www.nytimes.com/2005/04/11/opinion/11krugman4.html">Paul Krugman</a> has been writing about the <a>imminent<br />
crisis</a> for years.<span> </span>
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<p> But despite the near-universal opinion, the problem persists.<span> </span>It is the problem that everyone recognizes but no one will step up to solve.</p>
<p>In my tenure as Communications Director for the <a href="http://www.ueunion.org ">United Electrical, Radio and Machine Workers of America (</a><a href="http://www.ueunion.org ">UE),</a> I noticed a distinct pattern in contract negotiations.<span> </span>It was hardly a keen insight on my partâ€”youâ€™d have to be oblivious not to notice.<span> </span>
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<p> In every caseâ€”EVERY caseâ€”the major sticking point was health care.<span> </span>Grievance procedures, seniority, discipline, holidays,vacation, whateverâ€¦ all of that could be resolved amicably, but inevitably there would be a battle over who would pay for health care and how much.<span><br />
</span></p>
<p>And once that battle ended, with no winner, the negotiators from both sides would lament that the health care problem is a chokepoint for progress and a flashpoint for labor unrest.</p>
<p>My idea then, and itâ€™s available to anyone who wants it, free of charge, was for the union and management to sign a joint statement acknowledging that the failure of government to enact comprehensive health care reform was contributing to workplace strife, and that the continued health of the business was contingent upon a resolution of that problem that took the bossesâ€™ and the workersâ€™ heads out of the health care noose.</p>
<p>Get enough of those statements together, from unions and employers all over the country, and take them to Congress and say, â€œHereâ€™s your political cover.<span> <u style="display:none"></u>  </span>Now fix it.â€</p>
<p>That, I think, is where the problem lies.</p>
<p>The insurance industry is a behemoth with a lot of political clout, and politicians are in no itching hurry to challenge it.<span> <u style="display:none"></u>  </span>No matter how much sense it would make to tear the whole thing downâ€¦.</p>
<p>Youâ€™ve probably never heard of Tommy Douglas, but he did just that, and in doing so earned probably the highest accolade a Canadian could ask for the people of Canada <a href="http://www.cbc.ca/greatest/">named him the </a><a href="http://www.cbc.ca/greatest/">best person <em>ever</em> </a>in its history (Neil Peart didnâ€™t even crack the top ten).<span> </span>Douglas was the premier of Saskatchewan, a fairly bland place all things considered, and hardly the place where youâ€™d expect the greatest <em>anything</em><span style="font-style:normal"> to come from (except, of course, the greatest wife, Hi, Honey!).<span> </span>In 1962, he stood toe-to-toe with the insurance industry and doctors, who went on strike for fear of losing their financial privilege, and won.<span> </span>Saskatchewan socialized its health care system, and soon was followed by the rest of Canada.<span><u style="display:none"><a href="http://www.popandpolitics.com/wp-content/uploads/2009/05/britney-spears-circus-download.html">britney spears circus download</a></u><br />
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<p>It was a tough and bitter fight, dramatized in the CBC biopic <em>Prairie Giant</em><span style="font-style:normal">. (A fine film, but good luck finding it.<span> </span>It was considered to defame one of Douglasâ€™s political rivals, and the CBC pulled all copies of it.) Despite the strike, scare tactics, red-baiting and personal attacks, Douglas and his supporters stood their ground, and now all of Canada doesnâ€™t have to fear that a broken leg or a sudden illness will lead them to financial ruin.</span></p>
<p><span style="font-style:normal"><span><br />
</span>While the American medical establishment boasts of its whiz-bang technology and a tummy-tuck in every pot, none of my Canadian in-laws would trade their health care cards and supposed waiting lists for the â€œconvenienceâ€ and expense of American-style medicine.</span></p>
<p>And yet the United States, all can-do attitude and weâ€™re-number-one bravado, canâ€™t find a way to ensure that its people donâ€™t suffer from treatable illnesses or lose their homes as a result of untimely injury because they, or their employer, canâ€™t afford health care.<span><br />
</span></p>
<p>And when its major industries are drowning in health care-induced red ink, canâ€™t we finally acknowledge as a nation that subjecting health care to the unfettered market is killing our economy?</p>
<p>Itâ€™s too late to save Rick Wagonerâ€™s job (if anybody but Mrs. Wagoner cared to) and maybe too late to save GM.<span> </span>But can we please have some American somewhere stand up and channel his or her inner Tommy Douglas and demand that every American get real<br />
health care, not one person excluded?<span><br />
</span></p>
<p>If that happens, I will personally head up the effort to name him or her the Best American Ever.</p>
<p><em>Dave Saldana is a journalist, civil rights attorney, media critic and satire aficianado based in Washington, D.C..</em></p>
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