General Motors to freeze Salaried workers and change pension benefits
By bobmnu
@bobmnu (8157)
United States
February 17, 2012 12:48am CST
It seems that to save money, despite making a record profit, GM has decided that the salaried workers should take a pay freeze, and have their pension plans changed from a defined benefit to a defined contribution plan. My first reaction was this is what is happening to everyone with the conditions we face today. As I read further the Union members will not see any pension changes and will not receive a pay freeze. The company breaks the contract with one group but not the other group, how can this be? Remember in the government taker over of GM the Union received stock, the Government received stock and the Union Pension plan received stock.
http://online.wsj.com/article/SB10001424052970204792404577225202499659404.html
It is interesting that GM has a 103 year record profit despite the historically low car sales. How much of the profits are grants from the government to develop the Volt and other Green Vehicles?
http://www.cbsnews.com/8301-500395_162-57378543/gm-plans-to-freeze-salaried-workers-pensions/
I guess it shows that the Unions are only interested in themselves and are willing to cheat others to get more for themselves. When GM was a truly publicly traded company the Company negotiated with the Union and the then the salaried workers, now it seems that the Union negotiates with its self and dictates to the salaried people what they will get. Sounds like the Union is all about class warfare - stick it to the perceived 1 per centers.
3 responses
@TheMetallion (1834)
• United States
17 Feb 12
The company breaks the contract with one group but not the other group, how can this be?
GM's non-union members have a contract that guarantees them raises and a defined benefit pension plan? You sure about that?
@bobmnu (8157)
• United States
17 Feb 12
According to the New York Times the salaried workers were "Covered" by the same pension plan as Hourly workers (Union) In the new UAW Contract only the Salaried workers (Hired before 2001) are affected by the new retirement plan shifting them from a defined benefits to a 401K plan.
http://www.nytimes.com/2012/02/16/business/gm-eliminates-pensions-for-salaried-workers.html?_r=1
The fact that they were covered and it has been the Past Practice then by all Unions I have dealt with it has the force of contract. If this is such a good idea why not cover all workers under the new plan?
@TheMetallion (1834)
• United States
17 Feb 12
The article you cite is not clear on whether the salaried employees are members of the union.
I'm not a member of a union, I'm middle management. Where I work, I am covered by a pension plan as well as a 403(b). There is no contractual obligation for my employer to offer either, and if it wanted to it could modify or end my participation in those plans. There is a union that covers many people in the company, and the union certainly has a contract with my employer that obligates my employer in certain ways. But I'm not a party to that contract.
Unless these salaried employees are members of the union, I think you may be inadvertently making the case for unions.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
19 Feb 12
I think the real point here is, for decades the unions have been preaching about how management SHOULD treat their employees. But now that the UAW IS management, they are proving they aren't any different than any other management.
@thegreatdebater (7316)
• United States
17 Feb 12
Bob, IF those salaried workers were UNIONIZED than they wouldn't be able to do this without a vote from the union, but they are NOT!! GM can go back to the unions and ask for the same deal, but they would have to present a contract, and have it approved by the union members. This is a prime example of why the salaried workers should have unionized years ago, but they didn't.
Personally, I believe that NO GM or Chrysler employee should get a bonus, or a profit sharing check until the US tax payers are paid back in full. But, try getting a CEO of a US corporation to give back his seven to eight figure bonus, and see what happens!!!!!!!
@bestboy19 (5478)
• United States
18 Feb 12
I'll have to agree with you. US tax payers should get their money back before bonuses and profit sharing checks are received by any GM or Chrysler employee.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
17 Feb 12
Interesting isn't it. The unions lie and whine about Gov. Walker, but he never took a single dime of pension from anyone, nor did he impose pay freezes.
The UAW can't even live up to its own rhetoric!
The leadership is nothing but a bunch of hyenas.
