42,000 at GM to have their pensions cut

[kpete]

42,000 at GM to have their pensions cut
Automaker says huge loss in 2005 forced changes

March 8, 2006

After decades of giving its U.S. salaried employees generous pensions, General Motors Corp. announced a sweeping change in direction Tuesday that will place more of the burden on workers to save for their retirement.

The changes are the latest hit to benefits for GM's 42,000 salaried workers who have already been forced to pay more for health care while losing other perks such as tuition reimbursement.

GM said it must make the change as part of its efforts to reverse last year's $8.6-billion loss.

Following the lead of many other companies, such as Ford Motor Co., that have cut pensions, GM said that newer employees will see the biggest change.



http://www.freep.com/apps/pbcs.dll/article?AID=/20060308/BUSINESS01/603080339/1014/BUSINESS

[converted_democrat]

1. Bet that's going to go over well...n/t

[dogday]

2. The CEO reaps the benefits while the worker pay for the debt.....nt

[TlalocW]

3. Hopefully they'll remember to run to the government

For more handouts because they can't compete with foreign car companies that actually make affordable cars people want.

TlalocW

[global1]

4. Can't Wait To See The Cars These 42,000 People Make.....

Miss a screw here. Miss a part there. Compromise the brake fluid. Leave a wire off.

People have a way of getting back at there bosses.

I think this is a good sign to buy Japanese, Korean, etc.

[Syncronaut Seven]

5. Thus was the history of the Triumph TR-7

Sabotaged by short shrifted union workers on the line, many were back the day after purchase. Others, like me, had mountains of paper by the end of an all too short warranty period.

It sunk the company, permanently.

[Bozita]

9. These are the white-collar workers, NOT UAW members

They don't make the cars.

[Norquist Nemesis]

10. Are salaried workers making the cars?

Sincere question. The title is mis-leading in that it's not the line workers that the change is going to affect.

However, shit does down run downhill.

[SpiralHawk]

6. "All your retirement benefits are belong to us." - BushCo

& the Corrupt Crony Republicons

[Broke In Jersey]

7. What am I missing? Seems like its not as bad as advertized.

Current retirees are not affected.

Older workers will receive %1.25 of their salary in their benefit plan.

New workers will get %4 of their salary deposited into their 401K AND they will match 50% (up from 20%) of their contributions.

* Of course its not as good as their plan once was, but pensions are not viable anymore to companies. But the union workers will be rightly pissed a bit, which will continue to be shown in the quality of the cars, which will continue the downturn of the US auto manufacturers, which will continue to shrink the union and so on. Maybe Toyota will buy them out....

[Don Claybrook]

11. What you're missing

42,000 employess just lost a part of their total compensation package. People aren't generally thrilled with a pay cut, and that's exactly what this is.

The other item you're missing is nationalized health care. Most auto-making nations have this in place; thereby saving the corporation tons and tons of money, so that they can spend it on covering their US-based workers.

[Norquist Nemesis]

8. Whoa!! Read the piece carefully! It's for SALARIED workers

not the line.

Hopefully, they'll hit the top level...hard!

[Don Claybrook]

12. They already got the hourly workers last year

And just because someone makes a salary as opposed to an hourly wage doesn't mean they're at the top level.

[Norquist Nemesis]

14. True

Because the hourly was hit last year, it's none too soon to hit the salaried as well. And the top level are all salaried.

[lonestarnot]

13. Nothing absolutely nothing chaps my ass more than this type of shit!