Auto Workers Fear Deep Cuts in Pensions

If Chrysler, GM go to bankruptcy court, 1 million workers likely to take pension cuts

By Gabriel Winant, Newser User

Posted Apr 24, 2009 8:03 AM CDT

(Newser) – As Chrysler and possibly GM head toward bankruptcy court, nearly a million retired workers fear deep cuts to their pensions and health plans, reports the Washington Post. Though the Obama administration is hoping to mitigate cuts, the plans are underfunded by billions of dollars. “I feel betrayed,” says one Chrysler worker. “They offered these incentives for us to take early retirement, and I took one. Now it looks like my fixed income wasn't so fixed.”

Though negotiations to avoid bankruptcy are still ongoing, a move to court looks increasingly likely. In that case, the federally run Pension Benefit Guaranty Corp. might have to take over the pension plans. The massive job “would likely strain PBGC's resources,” says a government report.

[Images (4)]

[Quotes (1)]

Workers leave Chrysler's Toledo North Assembly Plant in Toledo, Ohio, Wednesday, Feb. 18, 2009. (AP Photo/Madalyn Ruggiero)

In this Jan. 11, 2009 file photo, Chrysler Chief Executive Officer Robert Nardelli answers questions at the North American International Auto Show in Detroit. (AP Photo/Gary Malerba, file)

Workers leave Chrysler's Toledo North Assembly Plant in Toledo, Ohio, Wednesday, Feb. 18, 2009. (AP Photo/Madalyn Ruggiero)

The sign in front of United Auto Workers local 1105 urges consumers to buy General Motors vehicles Wednesday, Feb. 18, 2009. in Parma, Ohio. (AP Photo/Mark Duncan)

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We spent our whole lives trying to build the company. We never thought that in our old age someone else might be playing roulette with our pensions. - Chris Dyrda, retired engineering manager at Chrysler

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COMMENTS

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Showing 3 of 4 comments

OWLWOMANXXXX

Apr 24, 2009 1:45 AM CDT

I am sick and tired of hearing of the greed of the whole damn company....Most of the workers got their jobs because they knew someone already there...then to demand those big retiremnt benefits along with the swell wages they were alotted is sickening...I am happy with my modest pension, but wouldn't argue if I had more...guaranteed retirement...top wages, good health care coverage...wake up auto workers..not everyone got that...and your CEo.s can go to h.......... too

Doctor-Zaius

Apr 24, 2009 1:22 AM CDT

Bullshit. The CEO of Toyota makes $1,000,000 per year to GM's CEO's salary of $17,000,000 while the workers benefits and salaries are comparable. The greed and shortsightedness of those at the top are who are to blame. I am really getting sick of hearing that the workers are to blame when they didn't design the bad cars or decide to make Hummers with 10/14 mpg gas mileage. Had GM not pulled the plug on the EV1 they would be in the driver seat and not Toyota with the Prius.

Robert_Dada

Apr 24, 2009 1:18 AM CDT

So I take it if you worked in the auto industry, you would have demanded that your wages should be reduced to reflect the 'true' value of the work?

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Auto Workers Fear Deep Cuts in Pensions