GM May Cut Retiree Health Benefits
May 27, 2009 by Cherie Burbach
Filed under Diseases & Conditions
It used to be that when you worked for a company, you were “set.” If you packed in, say, 30 years on a job, you were rewarded later in life by having the burden of finding health insurance and making extra money lifted by the company. You received health benefits in retirement and also a pension.
Even before this poor economy, companies were changing the way they dealt with retirees. They began to look at retiree benefits as a burden and not an obligation. Now, GM, which is victim to this economy, may cut retiree medical benefits “with immediate effect at the insistence of the U.S. Treasury because of GM’s “difficult financial situation.” Even more cuts for retiree benefits could be made in the next two years.
Do you think this is the right course of action?
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I don’t think that it is fair the way that GM is doing it’s retirees.
I have worked at 5 plants and relocated to two different states to keep my
job and retire with benefits. I sacrificed living around friends and family
to do this. We thought that our pensions and benefits were secure and that
GM had put back for this. Factory work/life is hard. You are subjected to all
sorts of chemicals,fumes,safety hazards,noise/dirt and debree,repetitive motion injuries,substance abuse, in addition
to the mental stress of the environment. Many people developed cancers, sustained life long and debilitating injuries etc; If they are bankrupt, and
cutting out pension benefits they should not be allowed to give everyone leaving the company via retirement or severence 20 thousand to 115 thousand + a 25 thousand dollar car voucher. If individuals file bankruptcy they cannot
have any money on reserve to distribute. So why is GM being allowed to do it?