GM Retirees Talk About Health-Coverage Cuts

One reason retirees and their families are upset is the salaried employees accepted slightly lower than average salaries for the work that they did, on the basis that when they retired they would have pension and health benefits for life, thereby compensating for the lower salary.

This belief has now been shattered.

Oscar Stratton, a GM retiree, comments, "Who thought when they retired in 1984 about what would happen in 2008?" He added that "employees need to realize that retirement perks are perks. Pension, heath care and other retiree benefits could disappear at any time."

Dickinson echoes this, saying "This is overwhelming to retirees in their 70's and 80's."

Chrysler and Ford (F Quote)previously cancelled retiree health-care arrangements, making a contribution to a Health Reimbursement Account instead.

Chuck Austin President of the National Chrysler Retirement Organization, says, "we were angry because we were promised health care for life. In 1988 they put in a provision that it could be cancelled."

A Ford retiree with 40 years in industrial engineering recalls, "It was an absolute disaster for Ford salaried employees."

Some retirees questioned why they should even buy the cars from their former employer.

One opines, "We gave them courtesy, devotion and loyalty. This should be shown to them now as they have been given."

Chuck White, chair of a group of Ford retiree organizations, cautions that retirees should take a moment before reacting: "Step back and look at it, and consider all of the changes. The haircut is being applied to everything -- unions, employees and salaried retirees. If retirees started to protest that they would not purchase Ford or GM products and they were successful, they could put their entire package in jeopardy. Purchasing reduces their risk."