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Ford Retirees To Lose Health Benefits

By November 15, 2006

The Detroit News reports that Ford retirees will be removed from the company retiree health plan in 2008. Instead, they will receive $1,800 per year in a health retirement account, which can be used towards Medicare premiums and out-of-pocket expenses. This is the latest attempt by the auto industry to reduce health spending by shifting costs to retirees. It is not likely to resolve the issue, however - we can expect more cuts in future years, affecting retirees, current employees, and new hires, until a more comprehensive, system-wide solution is in place.
Comments
February 19, 2007 at 2:42 pm
(1) J Roode says:

I think it is terrible that the retirees are being forced into an HMO or to take the cap of $1800. These seniors work their whole lives for the company only to get the shaft in the end.

April 7, 2007 at 8:26 pm
(2) C Smith says:

They are trying to do away with anything that has to do with the retirees. Most people don’t know that when a retiree reaches 62 they have to take their social security, because their pension is cut, with the amount they will get from social security. They do not want them to have anything. With the stock going down, most have lost millions, they was for retirement. Now this. Most will die because they will not be able to have insurance for health care or prescription drugs. But lets pay the CEO billions.

April 19, 2007 at 8:14 pm
(3) John J. Burns, Jr. says:

Promises are promises. When I retired at the end of 1990, Ford promised me full health and now you are going to go back on those promises. That is insane and terrible.

May 2, 2007 at 11:41 am
(4) harold Stetson says:

The article should state this affects only “salaried retirees”. The UAW retirees are not affected and still have the gold standard in health care. Ford is scared to death of the UAW.

May 19, 2007 at 2:52 am
(5) Deborah Dekker says:

After working for 23 years for the company, 14 of those with Multiple Sclerosis, I had to take disability retirement. After being loyal to this company for so long it’s hard to realize that the $1,800.00 we are going to be provided will not even cover my medication for 1 month. I had no control over getting sick, but was comforted in the fact that I would at least have my retirement and health insurance. I can’t believe they are doing this to the disabled retirees who will have an even harder time trying to obtain insurance on their own. Guess I will have to really enjoy the next 7 months, knowing the nightmare will begin in January. I really trusted Ford to stick to what they promised. Guess that makes me the fool. I sure hope somebody warns the future employees of this company to beware!

May 19, 2007 at 2:52 am
(6) Deborah Dekker says:

After working for 23 years for the company, 14 of those with Multiple Sclerosis, I had to take disability retirement. After being loyal to this company for so long it’s hard to realize that the $1,800.00 we are going to be provided will not even cover my medication for 1 month. I had no control over getting sick, but was comforted in the fact that I would at least have my retirement and health insurance. I can’t believe they are doing this to the disabled retirees who will have an even harder time trying to obtain insurance on their own. Guess I will have to really enjoy the next 7 months, knowing the nightmare will begin in January. I really trusted Ford to stick to what they promised. Guess that makes me the fool. I sure hope somebody warns the future employees of this company to beware!

June 28, 2007 at 12:24 pm
(7) James V Johnson says:

I would be interested in joining a class-action law suit with several other salaried retirees who after protecting Ford Motor Company for 34 years from becoming a salaried union, now face losing something that was promised for life. Disgusting is what it is and we need to do something about it. They are attacking us because it is the easiest thing that they can do. They are afraid of the UAW and always promised us that if we did not form a union that they would take care of us. Bull!!

July 2, 2007 at 2:23 pm
(8) Bernadette says:

My father retired from Ford. He was a hard working loyal employee an asset to the company. Now Ford is not keeping their end of the contract he expected. I who always bought Fords will NEVER buy another ford vehicle as long as I live nor will any of my family if I have anything to say about it. My dad looked like he was just heart broken when he told me. Like my dad I just have no words to express my horror that this can happen to a man who fought for our country, worked hard and had good values and character. How can this happen? What can be done now?

October 17, 2007 at 6:40 am
(9) Tommy says:

AFTER 30 YEARS SALARIED FOUNDRY BOSS AND CONTRIBUTING EACH MONTH TO PENSION BENEFITS,IT HAS ALL BEEN ERODED WITH THE TAKE-AWAYS OF PROMISES MADE BY COMPANY MANAGEMENT.IN LIGHT OF THE RECENT UNION NEGOTIATIONS THERE IS NO DOUBT THAT UPPER MANAGEMENT HAS CUT A DEAL WITH THE UNION. THE UNION MEMBERS HAVE CONTRACTS AND SO DO THE UPPER MANAGEMENT EMPLOYEES. WHERE DOES THAT LEAVE MIIDLE MANAGEMENT? It,s obvious that without a contract a salaried employee/retiree is getting shafted. What about all the years of total dedication and service? Now top management has determined that all foundry work will be outsourced and Ford,s foundries are all going to be closed. I wonder if Ford management ever pondered as to why GM is not getting out of the foundry business. Many salaried low/middle level retirees are facing a bleak future-what with loss of benefits(especially those with serious chronic health problems).Who cares? I don’t believe Henry Ford or Henry Ford II would have wanted their loyal,dedicated salaried employees treated this way.

December 6, 2007 at 12:38 pm
(10) Gail says:

Have they cut the salaries of upper management? The President, CEO etc? My dad worked for FORD for >30 years and made his life decisions based on their promises. Now, when he is too old to make any significant changes they renege. He is working two jobs to pay for his out of pocket health care costs and he is 82 years old. Shame on FORD, Shame on the UAW.

December 7, 2007 at 6:49 pm
(11) Garnett says:

My Father worked for 31 years at Ford.
He helped BUILD that company!
He passed away @ 84 years of age with the peace of mind that my mother who is now 87 would never have to worry about health coverage.He would be ashamed of what Ford is doing to them!
I too will never buy another Ford!

December 29, 2007 at 9:38 am
(12) Bill says:

I worked for Ford for 35 years and received a pretty certificate signed by what looked like a worm thanking me for that loyal service. I was satisfied to receive benefits via funds set aside for those purposes in lieu of the money in my paycheck for all of those 35 years. It is now obvious that those funds were not actually funded and just like what the government has done with the social security funds–the money was used for something else including bonuses for the top brass and dividends to investors. Bargaining in good faith has proved to be a one-way street. I know that much more than $1800 was diverted from my paychecks over 35 years intended for those funds. The compounded interest alone would far exceed that amount. Current active employees should take note and insist that their bargaining agents settle for the money in their paychecks instead of any promised funds. Individual savings accounts are more and more attractive than either company or government promised funds.

January 11, 2008 at 11:22 am
(13) C Birch says:

It is cleard Ford views retirees the way they view old equipment…disposable. the cold hard truth is they never cared about us, they simply needed to get everything they could out of us, before discarding us to the scrap heep. They not only kicked off the medicare eligible retirees from the health plan, they increased the premium by nearly 50% for eligible spouses and dependents. So they insure fewer people and charge us more for it. Remember the dvd they sent trying to explain how most retirees wouldn’t see a rise in their health care costs because of the $1800 HRA, that was a joke. My costs have increased 50%. The company needs a wake up call, all retirees need to stop buying their products. There needs to be a nation wide effort to fight back. Any retirees that want to make a statement simply don’t buy their product. Tell the company to stop sending you A/X/Z plan literature.

July 25, 2008 at 5:11 pm
(14) T Knap says:

I hate to say it, but Ford workers should have been thinking ahead when they were getting paid TWICE as much as workers overseas. I am for unions, but auto unions really held the automakers hostage over many years. And while all the union workers AND salaried workers received incredible pay, they should have been saving for a rainy day. Think about it – how can a company support retirement benefits for so many workers and their families. Do the math – if 10 workers pay into the pot, but you have to provide for 40 people – how is this possible. We should never never believe that something is really guaranteed. I have a sister and mother that worked for a hospital for 18 years and 40 years. When the hospital closed down, they received NOTHING. That’s right, no benefits, no medical, nothing. Now, if Ford workers were smart, they would not have been so embracing to their new cars/suv’s, gigantic houses, etc. They should have been appreciating what they were getting and saving/investing for a rainy day. Yes, this is what this is now – a rainy day. A company cannot bail out people if there is no money to do it. It’s impossible. Somebody should have taken some leadership within the union and within the salaried workforce as well. This somebody should have developed a long range plan to accomodate retirements, baby boomer era, etc. While I feel sorry for many of the elderly retirees who are facing a tough road ahead, I can’t say I have any feelings for a friend of a guy I know. He worked for Ford, and used to joke and laugh about how his buddy would punch in for him at work. He would then attend his bowling night, and easily slip right back in to his work routine later. I hope and pray that there were not more employees taking adavantage of incredibly high pay/overtime pay within the company.

December 25, 2008 at 1:17 pm
(15) Dennis W. says:

I really find it hard to believe that Ford can give the hourly retirees a monthly pension increase and a $700 bonus check this year. Are they financing this with the reductions in salaried retiree benefits? Also, the hourly retirees continue to receive full pension checks for a full year while collecting Social Security checks. Salaried Retirees don’t. Why the double standard?
I guess we need to inform the Southern Senators of this glitch in the “way-forward” plan, along with a Class Action lawsuit.

April 12, 2009 at 7:34 pm
(16) Robert J. Dewar says:

When did Ford ever care about people, salaried or hourly? If you think they ever cared you must be smoking wacky weed. I was a foreman for years at Ford. Read my new book “A Savage Factory” which will be released April 17, 2009. It tells all about how much Ford cares about employees, customers, or quality. You can order it direct from the publisher, at a discount, at http://www.authorhouse.com

June 23, 2009 at 6:54 am
(17) Stephanie J says:

This comment is to Dennis W who posted back in Dec. I am not sticking up for ford with what I am about to say. I only know about the hourly employees as my husband retired from ford. When he was able to collect social sec what happened was they took his pension he was getting and cut it right in half. I am not sure if the saleried employees got that cut or not. I just can’t figure it out why they had to take half his pension away because of SS. He sweated for years in that plant and now has cancer and if they take away the benifits we may as well just dig the grave and jump in as we will not be able to live on what his income is now. We must be concidered below poverty level right now.

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