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General Motors Finds A Way To Teach Former Workers A Lesson

In addition to spending$950 million to wind down the old GM, the new GM may have unintentionally found a way to send a tough message to the UAW workers looking to milk the system and retire in their 40s. In 2007, the UAW and GM struck a deal which allowed GM to cut its work force and avoid severance packages by offering early retirement to tens of thousands of workers. While that sounds predictably foolish by auto industry standards, the real hiccup comes in the form of GM not having to make contributions to the fund until 2013. Consequently the pension fund may only have 20 years left before it runs out of cash, leaving newly retired 40-somethings faced with a daunting choice- roll the dice with fund or, perish the thought, find a job.
Retired From G.M. at 54. Pensionless at 74? [NYT]

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28 Responses to “General Motors Finds A Way To Teach Former Workers A Lesson”

  1. guest says:

    What? Making union workers actually work is blasphemy!

  2. guest says:

    But contracts are sacred!!! That’s what the fucking AIG crybabies whined about. Don’t you remember?

  3. guest says:

    -@2
    Gee, really? Well – the Massiah in the WH declared that when it comes to auto companies thay are not. try to keep up with the news, fruckwit!

  4. guest says:

    Oral

  5. guest says:

    Change We Can Believe In!

  6. guest says:

    Dipshit@2: Don’t you have some booths to mop? The noon rush will be starting soon.

  7. guest says:

    I am @2’s psychiatrist. @2 went to MIT and never lost money. @2 was born with his ass on the front of his person. As such, he was discriminated against while on job interviews. Potential employers’ first impression was, “Dude showed his ass to me!!” But he found work as a cable company “customer service” rep. since then he has been approached several financial firms who want him to represent them in SEC matters.

  8. guest says:

    UAW workers retiring at 44 are no different than Suffolk County police doing the same.

  9. guest says:

    @9 – Except Suffolk County Police actually did something of value during their careers…

  10. guest says:

    California and GM are the same. Discuss.

  11. guest says:

    Dick Fuld didn’t retire soon enough.

  12. Anal_yst says:

    @11
    GM has PIK-toggles on all its debt, which it sells primarily to its own customers?

  13. guest says:

    Hawaii’s teflon shield gets another coating. First the Kim Il Ding Dong armada build up and now this. What’s next, Helicopter Ben dumping mail bags of $100s over the islands?
    http://www.washingtonpost.com/wp-dyn/content/article/2009/06/30/AR2009063004229_pf.html
    “After Call From Senator’s Office, Small Hawaii Bank Got U.S. Aid”

  14. guest says:

    So GM is raiding their pension fund. That’s not good. Only douchebags find that positive news. Greg is in front of the line since he wrote this.

  15. guest says:

    10 Yes and no. Early retirement is a racket in places like Suffolk where law enforcement is not a high risk job. Rich retirement benefits for public employees are a contributing factor in the horrible fiscal condition of the states, with CA and their especially good benefits being exhibit A. Retirement promises are a time bomb. The auto and airline situation is now being repeated at the state and local govt level. One of the reasons why you’re seeing traditional retirment plans disappear at many companies. Its an expensive but more importantly unpredictable benefit.

  16. merkin capital partners says:

    Melissa is not pleased about her hotter and pinker Aussie counterpart. Also concerned Drury will steal her pool boy.

  17. guest says:

    What? Another dreadful post? Will you ever stop this charade?

  18. guest says:

    @16
    Defined benefit plans are going away because private industry ways to shift the risks to the employee via plans like 401Ks, etc. And at the same time private industry wrote into law (lobbyists write the laws) more ways to raid the pension funds.
    Obviously governments haven’t caught up with that yet.

  19. guest says:

    Greg, care to explain why your post has no bite?

  20. guest says:

    Greg only feels sorry for bankers when they lose their bonus. He’s a typical (ex) Wall Street douchebag. Greg, why don’t you get a real job instead of cutting and pasting stories for a living?

  21. guest says:

    The pension plan that GM adopted includes a set of rules and benefit formulas. Participants make rational choices based on those rules. In the highly regulated world of pensions there are no loopholes, so how is this “milking the system”?

  22. guest says:

    @21/22, easy there boy. Don’t forget extra soy sauce when you deliver my lunch today. K? Thx

  23. guest says:

    @24 – which windowless cubicle is yours again?

  24. guest says:

    @24 – which windowless cubicle is yours again?

  25. guest says:

    Greg,
    I am your #1 fan. Word up.
    Not Mrs. Michaels

  26. guest says:

    @21/22/25/26 – are you the moron twin brothers or you just have difficulty operating a computer?

  27. guest says:

    @27
    Mr. Michaels?

  28. guest says:

    @29
    wearing his clothes, fucking his wife but i’m still not mr Michaels.
    the milkman.