Employees at GE Strike Over Healthcare
... All of these questions and concerns can change the answer as to who should bear the burden of the increased cost. If health care costs rises and GE does not pay for increases in co-payments or co-premiums, GE will bear the cost burden not the employees. This will result in a reduction of profits due to increased employee benefit expenses. This cuts in to the profit margin of GE and will increase their benefits rates/expenses as a percent of revenue. Health care premiums for GE rose 12.9% from 2001 to 2002. As a result the costs have shifted over to the workers and in the same years the premiums paid by workers increased by over 27%. These workers are strongly opposed to the increases and they are in the right to do so. GE’s profits have continued to rise and at the same time health care cost that they are reimbursing and paying for already, is also increasing. According to the workers, GE should be able to cover the small percentage increase of health care based on their increased profits. GE has had increased health care spending from 1999 to 2002 up 45%, but has remained consistent in those two periods as a percentage of earnings at 9%. It is imperative for GE to cover the rising costs for continued strong morale and feeling of need by the employees. Incentives are required to retain them and draw away from the negativities that they might feel by not getting their health care at their normal rates. When employees are forced to make increased out of pocket expenses, it psychologically feels like the company is taking advantage of them and not treating them fairly. GE could increase their matching percentage by a little bit and have the employee bear some of the cost. This would help to eliminate or at least reduce the increase of co-payments and co-premiums that the employees would have to spend out of pocket. If yearly wage increases would cover the cost of increased expenses in health care and covered the increased cost of living expense, there would be less hesitancy by the employees to accept this cost increase, which would also help to offset the rising cost of health care. These suggestions would really end up with GE bearing the cost burden themselves which they would likely not want to do. This why GE is pushing the cost of the increased health care to the employees, to pay for these out of pocket increases. As a company, GE has given quality health care benefits to all of their employees. It is generally considered to be one of the higher payers of insurance benefits amongst larger firms, about 16% which is less than the nationwide average. Cost of living increases year over year due to the changes in the economy are a given and should be accepted by the employees. The workers cannot assume that GE will shield them from increased costs of living, of which health care is an integral part of. If the decision of co-payments and hospital care increase/decrease wer...