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Cutting employment and healthcare costs

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Please help with the following case study on Health Care Costs and Employment Levels. I need one to two pages of information outlining your position on the matter—choose a side and describe your response. Please provide 2-3 references with the links please!

During the past year, health care costs per employee provided under the GMFC-Local 384 contract have increased by 11 percent. With the increased penetration of the domestic market by foreign producers and the resulting pressure on prices, GMFC is exploring ways in which health care costs can be contained or reduced. It is concentrating on subcontracting and negotiating an agreement to hire parttime employees who would not be eligible for health care benefits.

Local 384 would like to avoid benefits reduction, subcontracting, and part-time workers. The first would be a concession in an environment in which reductions have already been conceded. The second and third would lead to a reduction in the membership of the local or a reduction in the proportion of employees who are represented.

Assuming that this issue will be a major one in the upcoming negotiations, prepare either a union or a management position on the issue of health care cost containment, recognizing that the employer will be decreasingly able to compete if total compensation costs increase as they have been recently with these types of year-to-year changes in health care costs.

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Solution Summary

Provides argument in favor of the management to reduce healthcare costs in the organization.

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I will take the position of management for this assignment.

GMFC is definitely right in stating that the increasing competition and rising pressure on prices is making it imperative for the organization to cut down on costs in the organization in order to remain competitive. Cost cutting will ensure the competitiveness and survival of the firm in the long run and will help the organization to meet the expectations of its stakeholders such as investors and shareholders, employees and customers in an efficient manner.

Healthcare costs ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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