Susan AzarWorkers’ Compensation Manager

Vision: Design, Build & Sell the World’s Best Vehicles

Vision: Design, Build & Sell the World’s Best Vehicles

Global scale• GM does business in more than 140 countries• Over 73% of GM sales are outside of the U.S.• GM's largest markets, in sales are: China, US, Brazil, UK,

Germany

Employment• GM employs 209,000 people globally• U.S. employment is 79,000: 26,000 salaried / 53,000

hourly

Facilities• Globally - 71 assembly facilities / 87 manufacturing facilities• U.S. - 11 assembly facilities / 30 manufacturing

facilities

General Motors Facts

Average Age 49

Average Years of Service

22

Skilled Trade 23%

Non-Skilled 77%

Retirement Eligible 39%

Hourly Employee Demographics

Self Insured vs Insured StatesSelf Insured vs Insured States

Self-Insured (20) Insured (30) – High Deductible

CALIFORNIADELAWAREILLINOISINDIANAKANSASKENTUCKYLOUISIANAMARYLANDMASSACHUSETTSMICHIGAN

MISSISSIPPIMISSOURINEW YORKNORTH CAROLINAOHIOPENNSYLVANIATENNESSEETEXASWEST VIRGINIAWISCONSIN

ALABAMA*ALASKAARIZONAARKANSASCOLORADOCONNECTICUT*FLORIDA*GEORGIA*HAWAIIIDAHOIOWAMAINEMINNESOTAMONTANANEBRASKA

NEVADANEW HAMPSHIRENEW JERSEY*NEW MEXICONORTH DAKOTAOKLAHOMA*OREGONRHODE ISLANDSOUTH CAROLINASOUTH DAKOTAUTAHVERMONTVIRGINIA*WASHINGTONWYOMING

*Formerly Self-Insured

Decentralized Claims Administration • Self Administered Claims• Plants were independent • Paper Claim Records

Regional Claims Administration – early 1990’s• Self Administered Claims• Claims were handled at Regional Centers • Electronic Record Keeping System

Centralized Claims Administration – 1996 - Current• Claims Administration by TPA• GM Employees Provide Oversight• Industry Standards• JURIS – Sedgwick’s Claim System

Decentralized Claims Administration • Self Administered Claims• Plants were independent • Paper Claim Records

Regional Claims Administration – early 1990’s• Self Administered Claims• Claims were handled at Regional Centers • Electronic Record Keeping System

Centralized Claims Administration – 1996 - Current• Claims Administration by TPA• GM Employees Provide Oversight• Industry Standards• JURIS – Sedgwick’s Claim System

Evolution of Program Administration

Organizational Structure

Workers’ Compensation

•Report to Global Human Resources – Employee Benefits

•Work closely with Corporate Risk Management (Treasury) responsible for placement of Insurance & Collateral

WC Program Responsibility

Responsible for Self-Insurance Administration Relationships with State AgenciesAnnual Renewals, Reporting Requirements, AssessmentsSedgwick Data Analyst provides assistance

Responsible for oversight of TPA for Claims Administration

Third Party Administrator - Sedgwick CMS (since 1996)WC, Sickness & Accident, Extended Disability, FMLA (Pilot)Sedgwick Staff of ~120 peopleUtilization ReviewBill ReviewProvider NetworksVarious Vendor Management Relationships

• Vocational Rehabilitation (Voc Rehab)• Independent Medical Exams (IME)• Special Investigations (Surveillance)• Medicare Set-Asides (MSA)• Structured Settlements

• Broker – Aon (Casualty)

• Chartis – Insurer (Excess & High Deductible)

• Surety – Traveler’s

• Broker – Aon (Casualty)

• Chartis – Insurer (Excess & High Deductible)

• Surety – Traveler’s

Insurance & Collateral

Other GM Departments

Health Services

• Report to Global Human Resources

• Most Facilities have Medical Departments

Health & Safety

• Report to Labor Relations/Manufacturing

Legal / Litigation

• Outsourced Defense Attorney Model

Comparison of Headcount to Claim Cost

Frequency of Lost Time InjuriesBy Body Part

Expense of Lost Time InjuriesBy Body Part

Internal ChallengesInternal

•Reducing Lifetime Claims & Impact to Liability on Balance Sheet – 82%

•NJR (No Job Available) / Return to Work Obstacles Plant Closings Union/Labor Culture Work in Teams

•Recent Increase in Loss Frequency Overtime Relocated Employees

•Litigation MI – related to Benefit Coordination TN – related to change from Old to New GM

External Challenges

External•Economic Climate

Employee Relocations Consumer Demand

•Price of Gasoline•Employee Friendly State Laws

Opportunities

• Leveraging Relationship with Plant Medical+

• Succession Planning for Staff

6/1/2009 General Motors Corporation Files for Bankruptcy

7/10/2009 General Motors LLC Emerges from Bankruptcy

4/21/2010 Government Loan Paid-off ahead of schedule - with

interest

11/3/2010 Initial Public Offering raises $23 B

11/18/2010 US Treasury Department reduced ownership from 61%

to 33%

12/31/2010 2010 Net Income attributable to common stockholders of

$4.7 B

5/5/2011 Q1 2011 Net Income of $3.2 B

General Motors Financial Facts

Motor Trend Car and Truck of the Year Winners Chevrolet Volt & Chevrolet Silverado HD

Motor Trend Car and Truck of the Year Winners Chevrolet Volt & Chevrolet Silverado HD