Sunday, July 8, 2012

GM: GM salaried retirees still protesting pension shift

GM's decision to terminate its salaried pensions and transfer them has drawn anger from many retirees  and some have threatened to stop buying GM vehicles.

Jim Shepherd, the General Motors Retiree Association president, wrote GM chairman and CEO Dan Akerson this month questioning the move, and noting that retirees would lose the protection of the Pension Benefit Guaranty Corp. - the government's pension insurer - along with federal law that governments employee pensions 

GM officials on the call said the July 20 deadline to decide whether to accept the lump sum will not be pushed back - even though some retirees say they have gotten incorrect figures and are awaiting corrected ones.

He said one option may be an informal boycott by individual members. "We've got retirees who are sleeping one or two hours a night and are sick to their stomach," he said.

"We believe that these changes are good for retirees...and for the company, which will see its pension obligation reduced significantly," wrote Brinkley. "Strengthening our balance sheet will allow GM to do something we haven't done in decades -- focus our attention and resources on being the best carmaker we can be. That is good for everyone with a stake in GM's success."

Akerson said this month the company would consider a similar move for hourly employees, but has made no decisions.

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Story Date: 06-22-12

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