News, Shell-shocked GM retirees react: 'This is a knife stab in the back' (bankruptcy, pension)

[JD59]

After years of getting generous coverage, retirees from salaried jobs at General Motors Corp. reacted angrily Tuesday to the announcement that GM was ending their health benefits.

"I'm disappointed in the lifetime promise GM made to us," said John Fleming, 67, of Rochester Hills, a retired information system auditor.

Shell-shocked GM retirees react: 'This is a knife stab in the back' | Freep.com | Detroit Free Press (http://www.freep.com/apps/pbcs.dll/article?AID=/20080716/BUSINESS01/807160357 - broken link)

[evilnewbie]

Would the retirees like no pension plans as well? If GM goes bankrupt they get nothing...

[CouponJack]

Wow, I can't think of anyone else who gets lifetime health coverage.....


Oh yeah, congress does.....

[Niners fan]

I understand their frustration but we have to get past this notion of working for a company for 25 or 30 years and then being set for the rest of your life. My dad has cousins in Michigan that started in the auto plants at age 18 and retired at 48. They could live another 30 or 40 years. From a business standpoint a company just can't be competitive if they are paying for so many retirees.

[Niners fan]

Originally Posted by CouponJack

Wow, I can't think of anyone else who gets lifetime health coverage.....


Oh yeah, congress does.....

Don't forget the lifetime pension after two years on the job!

[HappyTexan]

Other retirees from the Top 500 firms get pensions and health care although in the last couple of years the price for them is rising.

Workers today get nothing..no pension plan nor health care after retirement. We are on our own with a 401K which will never compare to a pension plan. Big companies have been phasing out retirement benefits for quite a few years now by either increasing costs so much you can't afford it or just plain dropping it.

What I'm worried about is what happens in 20 years when these workers that only have a 401K to retire on starting hitting the retirement age.

[myrc60]

Originally Posted by HappyTexan

What I'm worried about is what happens in 20 years when these workers that only have a 401K to retire on starting hitting the retirement age.

The number of citizens in poverty will increase.

I understand the logistics of this move, but when you promise someone something that's guaranteed for a lifetime and then you cut it; you are breaking your promise. There should be recourse for the people affected but we know from experience that the court's will let these companies get away with breaking their promises. So much for the little guy.

[cobolt]

but I think your elected officials get life time benefits all thanks to your generous tax contributions. I mean, didn't Phil Graham say the recession was in our heads?

[evilnewbie]

So instead they should do what? Fire 10k people so they can keep their health care for retirement? Shut down a few more plants and layoff 20k people? Let these companes get away? Get away from what? Bankruptcy... You don't want them to get away from bankruptcy?

[HappyTexan]

A phased approach would have worked best. GM has been hurting for a while so this is not something that happened overnight. They are doing major surgery now and cutting off anything that can save THEM a dollar.