General Motors (NYSE:GM) Restores Health Insurance Benefits For The 48,000 Striking Workers

On Thursday General Motors (NYSE:GM) indicated that it would reinstate health insurance cover of its striking temporary workers. This comes after the early indication that they will push the costs to the UAW union with officials from both sides, indicating they are yet to resolve main issues.

Negotiations to continue through the weekend

Both GM and union officials confirmed that they did not reach an agreement even as negotiations continue through the weekend. The company said that the UAW members’ insurance cover had not lapsed because of the complexity of changing healthcare coverage costs. Company spokesman Jim Cain said that there was confusion surrounding what was going on and thus the company chose to work with providers to restore the health benefits.

The union blamed the company of blindsiding workers with the move to drop the insurance coverage during the strike. Some members claimed that they were unable to pay their medical bills because of the decision GM took. The UAW took this issue and made it the center of the striker through which it whipped political and public support for the over 48,000 striking employees.

In a letter to the company, UAW VP of the General Motors Terry Dittes indicated that there was no doubt that the public saw the actions of the company as a shameful act. GM workers have been on strike since September 16, seeking better pay, job security, and protection of healthcare benefits as well as getting a big share of the company’s profits.

GM blames UAW on the health coverage issue

The company blamed the UAW’sUAW’s strike fund for health insurance. GM previously indicated that they had communicated the decision on health coverage to the UAW before the strike. It said that prior to the striker there was no single worker who didn’t have health coverage through the Union’sUnion’s strike fund.

Analysts indicate that the striker has cost the company $100millionn per day since it began. This is the longest autoworkers striker in over three decades and has even become political. Some Democratic Party presidential aspirants have voiced their support for the striking workers.

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