Tags: auto | exec | retirees

White-Collar Auto Execs Fear the Worst

By    |   Friday, 24 Apr 2009 01:38 PM

While most public attention during the auto saga has focused on union workers with bloated benefits and executives with even more bloated benefits, middle management is flying under the radar.

They aren’t too happy about that.

The Obama administration's auto task force is slated to meet soon with representatives of 200,000 white-collar retirees from the Big Three auto companies.

The representatives will present arguments for the retirees to keep their benefits after the companies are overhauled, The Wall Street Journal reports.

Unlike union workers, salaried retirees don’t have much leverage in restructurings because their benefit packages aren’t covered by union contracts.

Companies often change the white collar retirees’ benefits without consulting them.

"Some people think that we're the fat-cat execs," Chuck Austin, president of the National Chrysler Retirement Organization and an engineer who retired a month shy of 40 years, told the Journal.

"That's not true at all."

Representatives for these retirees from the Big Three and supply company Delphi have been seeking a meeting with the Obama task force for weeks.

That’s because the white collar retirees are worried they may be the first to lose their benefits if the companies file for bankruptcy.

Experts’ views are split as to whether the auto companies would benefit from bankruptcy. Some say it would be the sword to break through the Gordian knot of issues hampering their recovery, while others says it would be a long, messy process.

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While most public attention during the auto saga has focused on union workers with bloated benefits and executives with even more bloated benefits, middle management is flying under the radar.They aren’t too happy about that.The Obama administration's auto task force is...
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Friday, 24 Apr 2009 01:38 PM
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