April 20, 2009, The Wall Street Journal
Auto Retirees Press Case
Representatives of some 200,000 white collar retirees of the Big Three auto
makers are expected to meet with the Obama administration's auto task force
later this week, a person familiar with the matter said.
The meeting is part of an effort by salaried retirees to press the case for
preserving their retirement benefits amid the restructuring of Detroit. Unlike
union workers and retirees, salaried retirees are often vulnerable in
restructurings because their benefit packages are not governed by union
contracts and companies often can change terms without consulting their former
employees.
Representatives of salaried retirees from General Motors Corp.,
Chrysler LLC, Ford Motor Corp. and
supplier Delphi Corp. have been pushing for weeks to get a meeting with the auto
task force, which is overseeing the restructuring of GM and Chrysler.
At the meeting, they plan to outline the hardships retirees will suffer if GM
and Chrysler are allowed to slash pensions, health care coverage and other
retirement benefits.
"Some people think that we're the fat cat execs," said Chuck Austin,
president of the National Chrysler Retirement Organization and an engineer who
retired a month shy of 40 years. "That's not true at all."
GM and Chrysler both face the possibility of filing for bankruptcy
protection, and have already begun cutting back on some benefits to white collar
retirees.
The task force has made no guarantees to the groups involved, the person
familiar with the matter said. But emails sent to leadership indicate the task
force may be receptive to their concerns.
Many retirees began advocating in recent months due to worry their benefits
are vulnerable if GM or Chrysler go under. Retirees at Delphi, which has been
stuck in bankruptcy court for more than three years, have faced many of the same
issues. Earlier this year Delphi cut their health care coverage.
White collar workers include salesmen, marketers, administrators and others
in middle management ranks.
Write to Alex P. Kellogg at alex.kellogg@wsj.com
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