UAW-Auto Deals: an Argument for Single Payer Health Care by Jonathan Tasini

Last week, I took part in a discussion on CNBC about the agreement reached between the UAW and Chrysler. The show’s producers wanted to focus on the question of whether the deal showed that the UAW’s power is in decline. The truth is that the Chrysler deal, and the previous pact reached between the UAW and GM, should be about one thing—why we need single-payer health care.
No one argues that the U.S. unionized auto industry is having significant troubles (I underscore "unionized" because the auto industry is doing just fine—if you look at the low-wage, non-union side). But, it’s amazing that given the numbers thrown around on health care during the negotiations, it did not evoke a collective shout "the solution is obvious." General Motors agreed to pay the UAW $35 billion to shift the cost of its retiree health care liabilities to a voluntary employee benefits association or VEBA, which will be managed by the union; the Chrysler deal will probably mean that that company throws in roughly $10 billion to the VEBA. Ford is yet to cut a deal.
That is the largest transfer of money to be agreed to in one deal from capital to labor in history—so much for the irrelevance of the UAW. But, obviously, there is a risk that, given the insanity of the health care system, that that money won’t last—if the current system is not radically changed.
I have long maintained that the auto industry is the perfect argument for single-payer. That wasn't rocket science since health care costs alone added $1,200 or more to the cost of a car produced here by an American auto company.
But, the media continues to ignore this fact. Instead, the media, not to mention a whole raft of pundits and politicians, are choosing ideology over clear economics-—to the detriment of workers and the companies they work for.
Here’s one other positive aspect of the GM deal: the company agreed to thrown in $15 million to set-up an institute to focus on changing America’s health care system. Once that institute is set-up (and presumably it will also have contributions from Chrysler and Ford), we need to make sure it is staffed by people who will put the welfare of the people, before the profits of the for-profit health care industry.