Even Just Threatening to Take Worker's Benefits Boosts Stock Prices

As far as executives are concerned the product of a company is the stock, not the articles or services provided. A car is a dollar's way to make another dollar. The stock market - really the financial analysts who write for the mutual, pension fund and other fund managers, and the rank and file stock sellers [brokers] - likes it when management takes stuff from workers, because in their dog eat dog view of the world, that's where money comes from.

Health care costs, labor costs in general, are a minor part of GM's competitive problem. Grabbing half a billion or so only makes the earnings look better [temporarily] which pumps the stock price a tad, permitting management to dump some options.

Frankly, mistreatment of salaried engineers and designers and others who do productive work for the company has contributed to inferior product generated at superior expense.

The AP story says local unions are willing to pucker on this issue [or say they are willing to.] For publicity, that's good. In fact, it won't be fact.

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GM Shares Climb After Health Care Meeting
Union Leaders Consider Picking Up Some Of Health Care Costs

CHICAGO -- Shares of General Motors Corp. rose Friday, following a meeting between the world's largest auto maker and United Auto Workers leaders in Detroit that indicated GM might get some wiggle room on cutting employee health-care costs.
In afternoon New York Stock Exchange trading, GM shares were at $34.37, up $2.57, or 8 percent. The shares are up substantially from decade-low of $24.67 hit in April.

Richard Shoemaker, head of the UAW delegation, repeated Thursday that the union won't reopen its contract with GM, which expires in September 2007.

But leaders of local unions from around the country said after the meeting that they would consider picking up more of the tab for their own health care to help GM cut costs. It's possible, they said, to make some changes within the current contract.