• 01 Jul 2009 at 10:10 AM

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]

Comments (28)

  1. Posted by guest | July 1, 2009 at 10:23 AM

    What? Making union workers actually work is blasphemy!

  2. Posted by guest | July 1, 2009 at 10:31 AM

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

  3. Posted by guest | July 1, 2009 at 10:42 AM

    -@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. Posted by guest | July 1, 2009 at 10:47 AM

    Oral

  5. Posted by guest | July 1, 2009 at 10:49 AM

    Change We Can Believe In!

  6. Posted by guest | July 1, 2009 at 10:49 AM

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

  7. Posted by guest | July 1, 2009 at 10:57 AM

    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. Posted by guest | July 1, 2009 at 10:59 AM

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

  9. Posted by guest | July 1, 2009 at 11:07 AM

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

  10. Posted by guest | July 1, 2009 at 11:12 AM

    California and GM are the same. Discuss.

  11. Posted by guest | July 1, 2009 at 11:16 AM

    Dick Fuld didn’t retire soon enough.

  12. Posted by Anal_yst | July 1, 2009 at 11:16 AM

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

  13. Posted by guest | July 1, 2009 at 11:23 AM

    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. Posted by guest | July 1, 2009 at 11:28 AM

    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. Posted by guest | July 1, 2009 at 11:30 AM

    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. Posted by merkin capital partners | July 1, 2009 at 11:31 AM

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

  17. Posted by guest | July 1, 2009 at 11:36 AM

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

  18. Posted by guest | July 1, 2009 at 11:38 AM

    @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. Posted by guest | July 1, 2009 at 11:39 AM

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

  20. Posted by guest | July 1, 2009 at 11:45 AM

    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. Posted by guest | July 1, 2009 at 11:51 AM

    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. Posted by guest | July 1, 2009 at 11:52 AM

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

  23. Posted by guest | July 1, 2009 at 11:58 AM

    @24 – which windowless cubicle is yours again?

  24. Posted by guest | July 1, 2009 at 12:00 PM

    @24 – which windowless cubicle is yours again?

  25. Posted by guest | July 1, 2009 at 12:07 PM

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

  26. Posted by guest | July 1, 2009 at 12:12 PM

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

  27. Posted by guest | July 1, 2009 at 12:24 PM

    @27
    Mr. Michaels?

  28. Posted by guest | July 1, 2009 at 12:29 PM

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