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GM walkout

Tue, 2007-10-02 00:23 — Matt Noyes
Sato Norie asks:

Question

GM auto workers walked out. In the reports they talked about the difference between Japan and the U.S.A. in workers' health insurances. I know nothing about the U.S. systems. Do companies pay everything for the workers even after their retirement? thanks! norie

Answer

Thanks for the question. It's a tricky one! In general, workers in the U.S. have insurance (health, pension) only if their employer provides it. You can pay for your own insurance, but it is very expensive. (My health insurance when I was in New York was about three times as expensive as the fee I pay for the national health insurance here in Japan, and the coverage was much more limited.)

This is all in turmoil right now because the companies -- like GM -- don't want to have to pay for the health care and retirement benefits they agreed to in past contracts. So, they are looking for ways to push the burden back onto the workers.

(There is minimal government insurance, but it is very poor and designed for the poorest people in the country.)

To learn about health insurance in the U.S., the best thing to do is to see Michael Moore's new film Sicko.