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CNN Live Sunday

GE Workers Threaten Strike to Protest Health Care Costs Increase

Aired January 12, 2003 - 17:07   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


FREDRICKA WHITFIELD, CNN ANCHOR: General Electric is bracing for a strike. Thousands of GE workers in almost two dozen states plan to walk off the job for two days this week to protest an increase in health care co-payments. CNN's Whitney Casey joins us live from New York with more on that -- Whitney.
WHITNEY CASEY, CNN CORRESPONDENT: Well, Fredricka, this GE strike, impending as it is, may be a picture of what could be, as health care industry experts say that 75 percent of larger companies plan on increasing the costs that their employees will have to pay for out-pocket health care costs.

Now, health care issues have always been a contentious issue at the bargaining table, but with these GE employees, what they say is that they should not have to pay. So it begs the question nationally -- who should have to foot this inflating bill? We traveled to upstate to New York to spend some time with these striking GE workers to find out.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Just some of the medications we have in our house.

CASEY (voice-over): They order their prescriptions in lump sums to keep their costs down.

UNIDENTIFIED FEMALE: Three people on inhalers. Three people with nasal drops because of allergies.

CASEY: Regardless, the medical bills keep adding up.

ANDY GNOINSKI, GE WORKER: That's probably a quarter or less of one year for the family.

CASEY: And now the Gnoinski family of five will have to pay more for their health care. Dad, Andy, has been working at General Electric's Schenectady plant for more than 30 years. Effective January 1, GE announced an increase of the amount employees will have to pay for their health care. Andy says that means over the next three years...

GNOINSKI: I could pay anywhere from $4,000 to $5,000 out of my pocket for the co-pays.

CASEY (on camera): And how are you going to afford that?

GNOINSKI: I don't really know.

CASEY (voice over): Andy also says he doesn't know why he should have to pay for the increase, citing the pricey perks of former CEO Jack Welch's package and the company's $4.1 billion third quarter profit.

GNOINSKI: So we know we have played a key role in a lot of those things, but yet now it feels like it doesn't matter.

CASEY (on camera): As unionized General Electric employees continue to point out their company's record third quarter profits, the health care industry experts point out some records of their own, saying that health care costs are rising at the fastest rate they have since 1991 and they see no signs of abating.

(voice-over): A recent industry-funded study says two-thirds of big U.S. companies, including GE, report health care costs increases. Costs are up nationwide 16 percent over the past year. This translates into the average health care increase of about $800 per employee. On average, companies say they will pay $600 of this increase, the employee will pay $200.

RICHARD OSTOW, TOWER PERRIN: If employees are too insulated from the costs, it makes them less than effective consumers of health care.

CASEY: General Electric says even though company profits are up, employees like Andy need to share the health care burden.

GARY SHEFFER, GE SPOKESMAN: We're asking our employees to pick up about $200 of that, on average of the typical employee. We don't like it. And that's why we're out there, working to find solutions to health care inflation.

CASEY: A temporary solution for Andy and his 17,500 unionized co-workers, a two day strike in 23 states starting Tuesday. And as Andy heads off to work, he says he just can't wrap his mind around the CEO luxuries a private jet and a $9 million pension, while he faces mounting medical costs on a $46,000 a year salary.

(END VIDEOTAPE)

CASEY: Now, GE pointed out to us that each of their unionized employees make on average about $200 a day. Now if they strike for two days, that would be a loss in wages and benefits of about $400 a day, and GE pointed out that far exceeds the amount of money they plan on increasing their out-of-pocket payments. But on a larger scale, Fredricka, the U.S. Government has some numbers on their own. They say in 2001 that the cost of health care spending went up about 9 percent. Now, what that translates into is about $1.4 trillion, and what that accounts for is 14 percent of the gross domestic product. That's a lot of money, Fredricka.

WHITFIELD: Indeed it is. Now, Whitney, is there explanation as to why the health care costs of these workers have gone up? CASEY: Well, often times it depends on who you ask, but some say because prescription costs have gone up so much, and in addition to that, HMO, Managed Care, premiums have gone up and they say one of the most exorbitant costs is hospital spending. So in total, those three issues will certainly be issues that lawmakers may have to look at. Fredricka?

WHITFIELD: All right, Whitney Casey from a very windy New York. Thanks very much.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com




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Aired January 12, 2003 - 17:07   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: General Electric is bracing for a strike. Thousands of GE workers in almost two dozen states plan to walk off the job for two days this week to protest an increase in health care co-payments. CNN's Whitney Casey joins us live from New York with more on that -- Whitney.
WHITNEY CASEY, CNN CORRESPONDENT: Well, Fredricka, this GE strike, impending as it is, may be a picture of what could be, as health care industry experts say that 75 percent of larger companies plan on increasing the costs that their employees will have to pay for out-pocket health care costs.

Now, health care issues have always been a contentious issue at the bargaining table, but with these GE employees, what they say is that they should not have to pay. So it begs the question nationally -- who should have to foot this inflating bill? We traveled to upstate to New York to spend some time with these striking GE workers to find out.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Just some of the medications we have in our house.

CASEY (voice-over): They order their prescriptions in lump sums to keep their costs down.

UNIDENTIFIED FEMALE: Three people on inhalers. Three people with nasal drops because of allergies.

CASEY: Regardless, the medical bills keep adding up.

ANDY GNOINSKI, GE WORKER: That's probably a quarter or less of one year for the family.

CASEY: And now the Gnoinski family of five will have to pay more for their health care. Dad, Andy, has been working at General Electric's Schenectady plant for more than 30 years. Effective January 1, GE announced an increase of the amount employees will have to pay for their health care. Andy says that means over the next three years...

GNOINSKI: I could pay anywhere from $4,000 to $5,000 out of my pocket for the co-pays.

CASEY (on camera): And how are you going to afford that?

GNOINSKI: I don't really know.

CASEY (voice over): Andy also says he doesn't know why he should have to pay for the increase, citing the pricey perks of former CEO Jack Welch's package and the company's $4.1 billion third quarter profit.

GNOINSKI: So we know we have played a key role in a lot of those things, but yet now it feels like it doesn't matter.

CASEY (on camera): As unionized General Electric employees continue to point out their company's record third quarter profits, the health care industry experts point out some records of their own, saying that health care costs are rising at the fastest rate they have since 1991 and they see no signs of abating.

(voice-over): A recent industry-funded study says two-thirds of big U.S. companies, including GE, report health care costs increases. Costs are up nationwide 16 percent over the past year. This translates into the average health care increase of about $800 per employee. On average, companies say they will pay $600 of this increase, the employee will pay $200.

RICHARD OSTOW, TOWER PERRIN: If employees are too insulated from the costs, it makes them less than effective consumers of health care.

CASEY: General Electric says even though company profits are up, employees like Andy need to share the health care burden.

GARY SHEFFER, GE SPOKESMAN: We're asking our employees to pick up about $200 of that, on average of the typical employee. We don't like it. And that's why we're out there, working to find solutions to health care inflation.

CASEY: A temporary solution for Andy and his 17,500 unionized co-workers, a two day strike in 23 states starting Tuesday. And as Andy heads off to work, he says he just can't wrap his mind around the CEO luxuries a private jet and a $9 million pension, while he faces mounting medical costs on a $46,000 a year salary.

(END VIDEOTAPE)

CASEY: Now, GE pointed out to us that each of their unionized employees make on average about $200 a day. Now if they strike for two days, that would be a loss in wages and benefits of about $400 a day, and GE pointed out that far exceeds the amount of money they plan on increasing their out-of-pocket payments. But on a larger scale, Fredricka, the U.S. Government has some numbers on their own. They say in 2001 that the cost of health care spending went up about 9 percent. Now, what that translates into is about $1.4 trillion, and what that accounts for is 14 percent of the gross domestic product. That's a lot of money, Fredricka.

WHITFIELD: Indeed it is. Now, Whitney, is there explanation as to why the health care costs of these workers have gone up? CASEY: Well, often times it depends on who you ask, but some say because prescription costs have gone up so much, and in addition to that, HMO, Managed Care, premiums have gone up and they say one of the most exorbitant costs is hospital spending. So in total, those three issues will certainly be issues that lawmakers may have to look at. Fredricka?

WHITFIELD: All right, Whitney Casey from a very windy New York. Thanks very much.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com




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