GM eliminating healthcare coverage for SALARIED retirees over 65

[Bozita]

http://www.freep.com/apps/pbcs.dll/article?AID=/20080715/BUSINESS01/80715027

GM plans:

• Salaried workforce job and compensation cuts

• To reduce its salaried workforce in the U.S. and Canada in 2008 through attrition, early retirements, mutual separation programs and “other separation tools.”

• To eliminate health care coverage for U.S. salaried retirees over 65 years old effective Jan. 1, 2009. Affected retirees and surviving spouses will receive a pension increase from GM’s overfunded U.S. salaried plan to help offset costs of Medicare and supplemental coverage.

• To freeze base compensation for U.S. and Canadian salaried employees for the remainder of 2008 and 2009.

• To eliminate annual discretionary cash bonuses for the company’s executive group in 2008.

• To reduce executive group cash compensation for 2008.

more...

[Frances]

1. The reason that GM can change whatever they want for

salaried employees is that salaried employees do not have a written CONTRACT. Those promises made about medical benefits etc in employer written lit are not legal CONTRACTS. I am sure that GM's union members had a legal contract spelling out their benefits so GM would be in legal trouble if they change the terms of a contract.

I know this because my husband was a salaried employee who lost medical benefits promised in written lit. The case went all the way to the Supreme Court, but the salaried employees lost. The workers in the union did not lose their benefits.

[Romulox]

2. That gives them something in common with all the non-union Toyota and Honda workers

Want to guess if Toyota decides to fund lavish retirements for their non-union US workers?

[Gman]

3. Eliminate bounses???

They must REALLY be in trouble!

[gratuitous]

4. "Can't get around that old minimum wage, Mortimer"

Well, we'll see. Nothing in this little laundry list of plans about re-tooling the product line, just cutting compensation for the workers. Apparently, the cars will build themselves.

[Tierra_y_Libertad]

5. The question now seems to be. Who's going to buy GM out?

Honda? Toyota? WalMart?

[comtec]

6. None of the above... remember that GM (tm) is a M A J O R war-profiteer

they make war toys, and as long as there's war....