Re: General Motors retiree: ‘This is a knife stab in the back’

General Motors retiree: ?This is a knife stab in the back?

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> After years of getting generous coverage, retirees from salaried jobs at > General Motors Corp. reacted angrily today to the announcement that GM was > ending their health benefits. > Advertisement > > ?I?m disappointed in the lifetime promise GM made to us,? said John > Fleming, 67, of Rochester Hills, a retired information system auditor. ?We?ve > been wiped off the books completely.? > > Fleming was among the shell-shocked GM retirees wondering about what they?d > do next for health care, following the surprise announcement that is part > of GM?s latest cost-cutting plan. > > Effective Jan. 1, GM will end health benefits for 97,400 salaried > retirees, their spouses and dependents. Retirees will receive an extra > $300 a month in their pension checks that could be used to buy health > care. > > Salaried Chrysler LLC and Ford Motor Corp. retirees had to make similar > choices in the past two years, after receiving years of coverage for > medical, dental, vision, prescription drug and some rehabilitation > services with modest co-pays. > > Although half of American employers still offer health benefits to > retirees, the trend is to drop retirement health plans for newer workers > or freeze coverage for current retirees to save money, according to the > Kaiser Family Foundation, a nonprofit health research organization. > > Now GM retirees must also navigate the confusing world of Medicare ? a > health insurance plan some find so bewildering that many settle for > costlier plans without doing the research to find cheaper, more > comprehensive ones. > > GM has hired ExtendHealth, a San Francisco benefits management company, to > help retirees find new health coverage, said GM spokeswoman Michelle > Bunker. > > ExtendHealth last year helped 40,000 Ford salaried retirees make a similar > transition. GM will send information packages to those affected in > September and will set up a call-in telephone service prior to Oct. 15, > the first day of enrollment for Medicare. > > The package will be followed by other mailings and seminars to guide > retirees through their Medicare options. ?We want to make this transition > as easy as possible for everyone,? Bunker said. > > GM paid $3.3 billion last year for health care for its 442,400 retirees, a > figure that includes hourly workers not affected by the benefit changes > announced Tuesday, Bunker said. Hourly retirees? health care moves off GM?s > books to UAW oversight in 2010. > > With a new 2008 Chevrolet HHR in their driveway, Aldona and John Tessmar > of Canton were furious with the news. > > ?We gave them the best years of our lives, and we?re devastated,? said > Aldona Tessmar, 74, who was a GM accounting staffer for 27 years. > > ?They want us to retire and then drop dead,? said her husband, John > Tessmar, 72, a former security supervisor who worked 28 years for GM. > > The Tessmars worry about what coverage they will be able to find, given > their health problems. He just finished cancer treatment. They both have > macular degeneration, a potentially blinding but common eye problem in > elderly people. He also has an ulcer. > > ?The problem is, the people who are over 65 have medical problems,? John > Tessmar said. ?A lot of insurance companies don?t want to take us on > because we?re going to cost them some money.? > > He said he wants to kick himself for buying the GM car. > > ?All the current employees, retirees and their families are suffering for > the wrong decisions made for many years by the top executives,? he said. > > The couple still haven?t adjusted to higher co-pays they began to pay in > 2005 and pension benefits frozen for 17 years, John Tessmar said. > > ?The bottom line for these people is the dollar,? he said. ?I wonder if > some of their grandparents are being affected just like us. This is a > knife stab in the back.? > > -- > Civis Romanus Sum
Reply to
Chevy Man
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That's why I refuse to step foot in walmart. Walmart sucks.

-b

Reply to
Brent

Not much to think about. Very few companies ever offered that kind of compensation for retirees. Maybe the phone company of years ago.

Reply to
Edwin Pawlowski

Yes, but to have it taken away will be a very large burden for these retirees.

Reply to
Jim Smith

So it's fair to work for a company, being promised insurance when retired, and then to have it taken away? Come on, Edwin.

Reply to
80 Knight

Thee was a blurb about that type of thing on the news. About 33% of companies offer coverage for retirees, down from 70% in 1980. GM is not the only one cutting that benefit as companies hit a cash crunch. More people cannot afford to retire too. I guess I'm fortunate that I may not be able to retire for a while, but at least I like my job and enjoy going to work.

Reply to
Edwin Pawlowski

I didn't say it is fair, I'm saying it is reality and we have to plan on no coverage. You can't trust a company pension that is funded by current cash either. Unless that money is invested in a third party, you can get screwed there too when the company goes to crap. Many companies go out of business every year either from poor management or the products they make are no longer needed. Sorry, but you can't depend on others to take care of you no matter how good their intentions.

Reply to
Edwin Pawlowski

you should be reminded that not all people had the advantage of 401k's matched savings etc. some people in their 80's counted on the health care as part of their pension. Now at the time they need it the most their savings are being depleted by costs as gm salary have not had any increases in pension for 30 years. to lose health care now will be awful news.

Reply to
tom

I can understand what you are saying, but I still think it's a "stab in the back", as the post is titled.

Reply to
80 Knight

I've got so many holes in my back, I've quit worrying about it....

Ed

Reply to
C. E. White

I don't have to be reminded of anything. Sure, some people will get hurt, but look at the whole picture.

Two possible scenarios: #1 GM continues to pay, they go belly up and the retirees get nothing. No healthcare, maybe no pension depending on how it was funded

#2 We cut the healthcare and give them $300 a month more in pension, we save tens of thousands of jobs and the retirees get something instead of nothing. With the extra money than can, at least, buy a Medicare supplement to help.

Yes, it sucks, but it is going to be that way for most of us in the future. There was a time you could retire and live on SS. While I have a 401k, I don't have enough to retire now that I'm 62 and probably won't when I'm 66, at least not with a very nice lifestyle. I have to take responsibility for that myself. There is a possibility that I'll retire or semi retire with very good benefits, but there is no guarantee the company will still exist, the owners will still be alive, etc. The good news is that if I can still get there I'll have a job as long as I want and I truly like my job and going to work.

Reply to
Edwin Pawlowski

It is a stab in the back. Most of these employees worked for this company for 30+ years and put up with alot of crap with the hope of retireing with the PROMISED benefits.I wanted a new car but will now look to Chrysler or Ford. I think it is time the upper management bit the bullet insted of always the worker.The guy who is 62 and loves his job must be planning on living forever. Tomorrow is not guaranteed to anyone. I would go out and enjoy life now but if working for some company is enjoying life then something is wrong........................................................................

Reply to
Chevy Man

Hello Nos:

The only hope for those who retired from G. M. before the new plan was implimented is in the United States Distrct Courts. At least that is my perception of the path to relief for these loyal, retired G. M. employees.

G. M. has outsourced many of its operations to other countries where they do not have to pay the U. S. dollar wages and benefits. Certainly it helps the General Motor's profit margin, but it does nothing for its current or retired American employees.

Like many companies during the last 20-years, loyalty to God and Country has been thrown overboard into outsourced waters. Whatever happened to "management in the public interest?

Peace is better than aggression,

Famous

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Reply to
famous21

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