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Industry Report: Big Three Labor Talks

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Khatir Soltani

Another issue is the need to control rising healthcare costs in the United States.

Even so, both Jackson and Whitty predict that there will be a strike-free settlement. A strike at this time would be a disaster to both the union and any one of the Big Three automakers, which are facing extreme competition pressure from the likes of Toyota, Honda, Nissan, Volkswagen, BMW and Hyundai, they said.

Ford Vice President Labor Affairs Dennis Cirbes listens to media questions at a press conference following the ceremonial handshake to open contract negotiations with the United Auto Workers union. (Photo: Ford Motor Company)

Union Pushes for Universal Health Care

One of labor's key issues, basically a revival of a theme it used as far back as the 1950s, is for the United States to adopt a universal, single-payer health care system similar to that found in Canada and many Western European countries. This is done under the argument that modern medical costs are getting out of hand for the average person to afford, which leaves many without healthcare coverage.

But, according to the UAW Web site, states could enact "Certificate of Need" legislation requiring hospitals to apply to a government panel before they purchase new equipment or expand their facilities as a way to control costs.

The union also recognizes that the economies of healthcare costs vary widely in the United States -- up to 2 ½ times -- depending upon what city a person resides in.

The UAW may be asking the Big Three to support national healthcare, but the automakers have probably deflected the union's arguments, Jackson said.

"It's really not something that the Big Three can bring to fruition," he said. "Universal healthcare was already rejected in the past; whether or not the debate is opened up again is an issue for Washington."

Khatir Soltani
Khatir Soltani
Automotive expert
  • Over 8 years experience as a car reviewer
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  • Involved in discussions with virtually every auto manufacturer in Canada