Adjusting the retirement pay portion of the retirement plan can be funded out of current earnings as it is dependent on an employees pay,longevity in the job, and a fixed future payout. Funding the health plan portion is like trying to predict the market, very risky. Boeing cannot safely forecast medical costs so it is very dangerous to negotiate and grant virtually open-ended health benefits. Hopefully, they will settle for pay changes and a more reasonable health package. Jack
I think one reason it's turned out that way is that health insurance is a tax-free benefit for the empolyee while being deductible for the employer. If health insurance were counted as taxable income and if employers said: take $xxx of health insurance that we'll provide for you or take the money, it would provide an immense incentive for employees to find health insurance that fits them best at the best price. Health care costs would thus come down.
You've got to be kidding, individual health insurance rates are at least 20-30% higher than group rates employers pay. Given current state of healthcare industry it would be lose-lose situation for both employers and employees, you're just getting less bang for the buck.