Retirees fear GM is going bankrupt

The company's health-care proposal isn't as bad as some retirees had expected.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
LORDSTOWN -- Local General Motors retirees don't seem to mind a new health-care proposal, but they are worried the worst is yet to come.
"I think this is the beginning of the end," said Floyd Hiland, 52, of Warren. "We're going to give, give, give until GM pulls a Delphi."
All of the retirees interviewed Thursday after an informational meeting said they are concerned that GM will someday file for bankruptcy, as Delphi Corp. has.
The auto parts supplier has told union officials that it wants to slash hourly wages from $27 to $10, cut benefits, close plants and eliminate jobs. Delphi retirees aren't sure if they will keep their health-care benefits or if Delphi will try to turn over its pension plan to the federal Pension Benefit Guaranty Corp.
Wylie Blevins Sr., 59, of North Jackson said a GM bankruptcy filing "is always in the back of your head."
Mark Boyce, 56, of Ravenna said he expects GM to come back for more concessions in three or four years. The company's labor contract with the United Auto Workers expires in 2007.
The health-care proposal was negotiated in advance in order to alleviate the financial strain on the automaker, which lost $3 billion in the first nine months of the year.
The retirees said they expected the plan to hit them harder than it did. They now don't pay anything toward premiums or have any deductibles, but they do have co-payments for medicine.
"It could have been a lot worse," Blevins said.
Hiland said he expected that he would have to pay $100 a month for health-care premiums when the negotiations were going on. He was relieved that retirees would have to pay only $10 a month for single coverage, plus a $150 deductible.
"Ten dollars is nothing," he said.
Ed Jones, 72, of Columbiana said the increased costs will be a bit of a strain on him and his wife. The charge for family coverage would be $21 a month, plus a $300 deductible. The deal also increases medicine co-payments and includes some new charges.
Jones said the annual costs would take up about one month of his $800-a-month pension. He retired in 1995 after 20 years in the plant. Those retiring today with 30 years of service receive about $3,000 a month.
Blevins said he appreciates the sacrifices that the current workers are being asked to make on behalf of the retirees. Workers are being asked to contribute $1 an hour in future pay increases to a new fund to help pay for retirees' coverage. GM would contribute $3 billion to the fund over the next six years.
Voting
UAW members are voting on the proposed plan this week and next week. Workers would continue to pay nothing toward health-care premiums but would receive some increases in medicine co-payments.
The retirees said they didn't like that they can't vote on the agreement. The UAW has asked a federal judge to rule that it has the right to negotiate changes to the retirees' health-care plan.
Jones said that concessions like these would have been unthinkable 15 years ago because the union was stronger. But perhaps the union has no way of stopping forces that are at work in the economy, he said.
"Maybe we have to give in," he said. "Maybe that's the way it's working in this country."