Boy do I wish that my company was still owned by GM!!!

[RightIsWrong]

I don't know if I really need to add anything to explain why I wished that we still fell under the GM umbrella....do I?

Full Story @ CNN

GM offers workers up to $140K to leave
Severance packages available to 113,000 workers; deal also reached with Delphi to avoid

NEW YORK (CNNMoney.com) - General Motors is offering hourly workers as much as $140,000 each to leave the company as the troubled automaker extends its push to cut labor costs and put an end to billions of dollars in losses.

GM (Research) announced an agreement with the United Auto Workers union Wednesday, although it did not give the details of the offer extended to all 113,000 U.S. hourly employees.

But a person familiar with terms of the offer said that UAW members with 10 years or more service with the automaker will get $140,000 if they agree to forsake the retiree health care coverage that has become a crippling burden for GM. The workers will keep their accrued pension benefits, though.

Those with less than 10 years service will get $70,000 if they leave without the health care coverage.

 

[Preyhunter]

Sucks to miss out on handouts, doesn't it?

 

[RightIsWrong]

Originally posted by: Preyhunter
Sucks to miss out on handouts, doesn't it?

Why would you consider this a handout? These people have actually WORKED for this opportunity. The last time I checked, that all but eliminates it from being a handout.

Edit: I guess not everyone can be born into a trust fund that is given a capital gains tax cut. Not THAT is a handout.

 

[maddogchen]

If I were around 50+
I would NOT take this offer. Health coverage is so hard to find and expensive for those over 50. Especially if you've already had health problems before. If you plan to live long, $140,000 might not cover all your health costs for you and your spouse by the time you're in your 80s.

 

[boomerang]

Remember, that's $140K before taxes. It will throw most of them into alternative minimum tax territory. So taxes will take a big chunk of that.

 

[zephyrprime]

I would be tempted by this deal. I think there's a good chance GM will forfeit on it's insurance obligations anyway if it goes bankrupt.

 

[DotheDamnTHing]

isnt it up to 140k?...so not all get it

 

[BaliBabyDoc]

Originally posted by: maddogchen
If I were around 50+
I would NOT take this offer. Health coverage is so hard to find and expensive for those over 50. Especially if you've already had health problems before. If you plan to live long, $140,000 might not cover all your health costs for you and your spouse by the time you're in your 80s.

1) I would hope people that have been gainfully employed for 10+ years would realize $140k provides a nice cushion for transitioning to a new job . . . not retirement. Short of FOREX, you cannot wing early retirement on $140k unless you have Hilary Clinton's investment advisor or belong to the Bush family.

2) Healthcare insurance is expensive if you use a lot. Even older people can find decent plans that will provide affordable coverage if you are reasonably healthy and have good health behaviors. Further, GM is going to get out of the healthcare business. Retirees may escape with bumps and bruises but Delphi and probably GM workers will be "encouraged" one way or another to use the government dole (Medicare).

 

[ShadesOfGrey]

Originally posted by: RightIsWrong

Originally posted by: Preyhunter
Sucks to miss out on handouts, doesn't it?

Why would you consider this a handout? These people have actually WORKED for this opportunity. The last time I checked, that all but eliminates it from being a handout.

Edit: I guess not everyone can be born into a trust fund that is given a capital gains tax cut. Not THAT is a handout.

The settlement isn't a handout, but I take issue with your defense. They didn't work for this settlement, they aren't owed a damn dime more than their current pension monies. This is more of a bribe so GM doesn't have to fight the union to cut jobs.

Capital gains tax cuts are not a handout in any sense of the word. People are given money, they just have to pay less to the government. You got that? THEY PAY, NOT GET.

 

[TRUMPHENT]

Originally posted by: ShadesOfGrey

Originally posted by: RightIsWrong

Originally posted by: Preyhunter
Sucks to miss out on handouts, doesn't it?

Why would you consider this a handout? These people have actually WORKED for this opportunity. The last time I checked, that all but eliminates it from being a handout.

Edit: I guess not everyone can be born into a trust fund that is given a capital gains tax cut. Not THAT is a handout.

The settlement isn't a handout, but I take issue with your defense. They didn't work for this settlement, they aren't owed a damn dime more than their current pension monies. This is more of a bribe so GM doesn't have to fight the union to cut jobs.

If I were a longterm GM employee right now, I would have some queasy sensations. Do GM employees still have their retirement tied up in a GM pension? If so then don't sleep. You shouldn't be able to.

Capital gains tax cuts are not a handout in any sense of the word. People are given money, they just have to pay less to the government. You got that? THEY PAY, NOT GET.

 

[Stunt]

With the reduced volumes, and no hope of getting it back; it's nice to see GM is finally taking a hint...

Reduce workforce and costs, maybe we'll keep a couple domestics around.

 

[RightIsWrong]

Originally posted by: ShadesOfGrey

Originally posted by: RightIsWrong

Originally posted by: Preyhunter
Sucks to miss out on handouts, doesn't it?

Why would you consider this a handout? These people have actually WORKED for this opportunity. The last time I checked, that all but eliminates it from being a handout.

Edit: I guess not everyone can be born into a trust fund that is given a capital gains tax cut. Not THAT is a handout.

The settlement isn't a handout, but I take issue with your defense. They didn't work for this settlement, they aren't owed a damn dime more than their current pension monies. This is more of a bribe so GM doesn't have to fight the union to cut jobs.

Capital gains tax cuts are not a handout in any sense of the word. People are given money, they just have to pay less to the government. You got that? THEY PAY, NOT GET.

So let me see if I understand you correctly.....they go to a job almost daily for x number of years and part of their compensation is retirement health benefits. GM comes to them with an offer of x number of dollars in lieu of that compensation and you say that "they didn't work for this settlement"? You really need to actually understand what you are reading before commenting.

As for my other example, comprehension isn't your strong point, is it? I stated that a capital gains tax cut on money that someone receives from funds left to them in a trust fund is a handout because they didn't do a damned thing to earn it. Unless you are under the impression that being born into one is "earning" it? Maybe I should have used the inheritance tax breaks instead? Would that have been a better example of a handout? Unless, once again, you think that money that someone else just gives you counts as you "earning" it?

 

[Strk]

Let's hope this helps to reduce that 10+ billion dollar loss. People can pick on GM all they want, myself included, but if they actually collapsed, that would be horrible.

 

[Genx87]

I would probably take it because chances are when they file for bankruptcy that health pension is gone anyways.

 

[judasmachine]

If you're young enough and find gainful employment quick enough after this deal then you could turn the 140K into quite the retirement package. Nice to see that not only the top execs get golden parachutes.

 

[ShadesOfGrey]

Originally posted by: RightIsWrong

Originally posted by: ShadesOfGrey

Originally posted by: RightIsWrong

Originally posted by: Preyhunter
Sucks to miss out on handouts, doesn't it?

Why would you consider this a handout? These people have actually WORKED for this opportunity. The last time I checked, that all but eliminates it from being a handout.

Edit: I guess not everyone can be born into a trust fund that is given a capital gains tax cut. Not THAT is a handout.

The settlement isn't a handout, but I take issue with your defense. They didn't work for this settlement, they aren't owed a damn dime more than their current pension monies. This is more of a bribe so GM doesn't have to fight the union to cut jobs.

Capital gains tax cuts are not a handout in any sense of the word. People are given money, they just have to pay less to the government. You got that? THEY PAY, NOT GET.

So let me see if I understand you correctly.....they go to a job almost daily for x number of years and part of their compensation is retirement health benefits. GM comes to them with an offer of x number of dollars in lieu of that compensation and you say that "they didn't work for this settlement"? You really need to actually understand what you are reading before commenting.

As for my other example, comprehension isn't your strong point, is it? I stated that a capital gains tax cut on money that someone receives from funds left to them in a trust fund is a handout because they didn't do a damned thing to earn it. Unless you are under the impression that being born into one is "earning" it? Maybe I should have used the inheritance tax breaks instead? Would that have been a better example of a handout? Unless, once again, you think that money that someone else just gives you counts as you "earning" it?

You obviously didn't read what I posted or just your knickers in such a twist that it blocked your eyes.

"they aren't owed a damn dime more than their current pension monies." and that is the truth.

No, tax cuts are not a hand out. I don't see how some people like you can't understand simple concepts such as this. Cutting taxes on Cap gains is not a hand out no matter what the source of the principle investment/fund is. The fact is, taxes are still payed in, not monies from.

If you would try to argue that trust funds are a handout, that might be ok, but don't try to bring tax politics into it because you seem clueless. Also note that trust funds are not monies given by the government - it is earned from whatever source the person setting it up has. It may be considered a handout from family or the trust, but it certainly isn't a handout from the government like you seem to think by bringing taxes into the picture.

 

[3chordcharlie]

Originally posted by: judasmachine
If you're young enough and find gainful employment quick enough after this deal then you could turn the 140K into quite the retirement package. Nice to see that not only the top execs get golden parachutes.

A lot of people will find themselves better off taking the buyout, especially with the uncertainty and underfunding of pension/health plans (this is called 'corporate raiding').

But 140K isn't exactly a golden parachute; with a few decades and a new job to work with, it would certainly help though.

 

[Drift3r]

Originally posted by: judasmachine
If you're young enough and find gainful employment quick enough after this deal then you could turn the 140K into quite the retirement package. Nice to see that not only the top execs get golden parachutes.

If you are young like in your early twenties or thirties. If you are 40 something or older you just got shafted. Oh and as someone else stated when taxes are taken out it won't be 140k and health insurance for older folks is pain to get and costly. Never mind the fact you can't even compare this deal to what execs get for driving a company into the ground.