Posted on 06/18/2012 3:01:50 PM PDT by jazusamo
The president of the GM Retirees Association, Jim Shepherd, sent a scathing letter last week to GM CEO, Dan Akerson . The letter was in response to General Motors' decision to modify pension plans for non-union retirees. Mr. Shepherd stated that the non-union retirees wanted to express their "absolute consternation and disgust" and described the move by GM as not being only unfair but, "it is sheer irresponsibility and greed."
So, on behalf of its many members, I now welcome the GM non-union retirees to the "Hosed by Government Motors Club." As I mentioned when I welcomed Canadian taxpayers to the club, members of the club include former GM shareholders and bondholders, widows and other accident and asbestos litigants, owners of "Old" GM vehicles who did not have their vehicles' problems covered by "New" GM, Indian tribes and others who have had their lands polluted by Old GM, Delphi non-union retirees, non-union workers at shuttered GM dealerships and the American taxpayers. The club does not include politically-favored US unionized labor or legal firms enriched by the GM bankruptcy process which were awarded DOE contracts worth million of dollars in addition to the millions they already made in the GM bankruptcy.
The list of groups and individuals who have been treated unfairly and inequitably by Government Motors continues to grow as those without political clout sacrifice to protect the interests of cronies and those friendly to the regime running the show. The ugly display of favoritism as inspired by the American President and executed by both his Auto Task Force and his appointed management at GM has seen UAW jobs protected while non-union jobs at shuttered dealerships were axed. Unsecured creditors without political connections, like the GM bondholders, received a fraction of what the politically-connected UAW (which was legally equal in standing) received in the GM bankruptcy process. GM saved the pensions of UAW retirees at Delphi while pensions of non-union retirees were cut. And now, current GM non-union retirees are forced to sacrifice while UAW pension obligations continue to grow and threaten the financial health of a company that American taxpayers paid tens of billions of dollars to save.
Mr. Shepherd states in his letter that "GM's retirees do not deserve this kind of treatment." As Clint Eastwood said in his movie, Unforgiven, "deserving's got nothing to do with it." What does have something to do with it is blatant cronyism and political payback. As GM is about to pull the trigger on yet another victim, Shepherd pleads, "Please prove that GM management is not morally or ethically bankrupt." Sorry Mr. Shepherd, it seems that your request is a bit late as the moral and ethical bankruptcy at GM has already transpired. Just ask fellow club members and those now boycotting GM.
Mark Modica is an NLPC Associate Fellow.
I’m a GM salaried retiree and TOTALLY disagree with this group.
GM is offering attractive lump sum pension buyouts OR transferring the pensions to Prudential (which has a MUCH higher credit rating than GM).
Their criticism is based on the fact that there will no longer be “insurance” from the FedGov via the PBGC.
Well guess what boys? The FedGov is BROKE and the PBGC has a deficit of $26 BILLION.
Working link:
http://nlpc.org/stories/2012/06/18/non-union-retirees-join-%E2%80%9Chosed-gm-club%E2%80%9D
I read the letter but it didn’t seem too bad to me but you would have a better idea than I since you are a salaried retiree. What is the difference between your plan and a 401 K which is what my husband has?
ping
The list, Ping
Let me know if you would like to be on or off the ping list
The pension plan is an annuity.
So this GM Retirees Association is a group you would belong to when you retire if you retained your current plan, is that correct?
Also, is this the same retirees group that union members belong to when they retire?
Just trying to figure out who this group represents.
Sounds like they are moving to a third party managed fund - like every other old style pension fund is doing.
They bitch about something like that but not mention a word about this.....
http://www.youtube.com/watch_popup?v=Lvl5Gan69Wo
It’s a private group, essentially a club, unaffiliated with either GM or the union. You pay dues to be a member.
They claim to “represent” GM retirees but they have no official standing with GM, the union, or anybody else.
Yes, GM is definitely going for a hookup with China, there signed partnership with SAIC proves it.
Actually if you take the lump sum, or the Prudential annuity, you have no connection with GM from that point on.
For some folks that my be a real positive.
China is the world’s largest automotive market and is now producing TWICE the number of vehicles yearly that the US is.
Any mainstream mfgr that doesn’t participate there will likely fall by the wayside in the worldwide competition.
We can debate whether a company should take that risk, but it is a significant risk.
I understand what you’re saying and China isn’t the only country GM and other auto companies are hooking up with.
A very big concern with China though from what I’ve read is from the technology standpoint. GM originally came out and said they wouldn’t give them their Volt technology, but now there’s talk of building the Cad ELR there and that’s Volt technology.
China may supposedly be our friend when going after trade and sharing technology but they’re sure putting of lot of money into their military.
I can positively state with absolute certainty that I will never buy a car made in China; or a car assembled from parts made in China.
I should live so long!
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