Death of Detroit
General Motors is clinging to survival with a little help from the US government and bankruptcy court. Yet many of GM's union members feel uneasy. Will GM use bankruptcy to shed union commitments?
'Get 10 people and ask them where they work, I guarantee that they'll say Ford, Chrysler, GM - that's why they call us Motor City' says Kenny, a former GM worker. The plant he worked at was once run by 3000 people, now it operates on a staff of 50. Cutbacks are seen everywhere. 'GM was covering health care for a million people' says Dave of the Centre for Automobile research. This gave GM a $2,000 competitive disadvantage. 'This legacy cost problem was going to wipe the company out' Dave explains. Members of the United Auto Workers, have cause for concern. 'We retired thinking that everything would be OK' says Randy. With the help of the US government, pensions are secured. But reductions in healthcare benefits are a devastating blow for Curtis, a former worker who was run over by a drunk driver in 2001. 'A new GM will emerge that can provide a new generation of Americans with a chance to live out their dreams' says President Obama, announcing the privatisation and bankruptcy claim of General Motors. For Randy this move is 'pushing us out'. These optimistic words will mean a cost of $50 billion to the taxpayer, 21,000 jobs lost and more cuts to union benefits.
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