Wednesday, May 11, 2005

Retiring Retirement

“Blessed are the young, for they shall inherit the national debt."
Herbert Hoover (1874-1964), 31st president of the United States

The pension scandal that is United Airlines is nothing short of criminal. In Federal Bankruptcy Court, the judge ruled that United Airlines is no longer responsible for its pension plans. The company made a promise to its employees and the courts have now allowed the company to break it. Not only does United get to walk away from their debt to employees, but also they get to have the government pay off the debt, but employees only receive a percentage.

However, United Chief Executive Officer will continue to receive his million dollar pay check, but most importantly he gets to keep is $4.5 million guarantee retirement package. Now the other airlines USAir, Delta are lining up to skip out on their debt. In 2002, it was Bethlehem Steel.

I don’t believe in conspiracies, but I am starting to think that there is a boys-on-the-bus* mentality going on here. The government and the corporations are lining up to rid employees and citizens of benefits. There will no longer be a safety net for citizens of the richest and most prosperous country. Now it is Darwinian survival for a country that doesn’t even believe in the Darwinian Theory.

Retirement was created during the Roosevelt administration during the depression to help get younger workers employed. Today, projections for an aging society show there will not be enough workers to go around. So, in order to keep businesses functioning, they systematically reduce the ability of people to retire.

Look how hard President George Bush is pushing his empty Social Security plan for private accounts and how companies that are not bankrupt are changing their plans from defined-benefit plans to defined-contribution plans like 401(k) programs. IBM was recently the most egregious in trying to change the rules in mid-stream for its employees until the court made them grandfather in some sort of cut off period. Other companies have been quietly changing the rules on retirement. This is no longer your fathers’ compassionate country.

It may not be a conspiracy, but there is a domino effect that is in motion to retire retirement.

*“Boys on the Bus” by Timothy Crouse about the 1972 presidential election coverage when reporters tended to follow one another rather than report original stories of the campaign.

9 comments:

bitchphd said...

I truly believe that the end result of this, if the Republicans stay in power, will be to make the American economy look a lot like a lot of South American economies--very small elite, and everyone else lives in slums.

Mommy Needs a Xanax said...

There is less concern for the younger worker and I'm sure it's connected to the fact that the baby boomers are now old and wealthy.

I agree with BitchPhd. My thing with the whole Republican/Democrat thing is multifaceted. But first of all we need more than 2 parties and the possibility for that is becoming more and more impossible as the Rep/Dems each gain more power.

I'm 26. I've now been in the workforce for 10 years. Though at least half of that was as a part-time worker I still paid my taxes and contributed to the blackholes of social security and medicaid. And where's it gonna be when I need it?

The silver lining is that these bastards are going to die off soon, and there are alot alot alot of people in our generation that have common sense, despite the fact that we're constantly told we're a worthless generation. What we must do is make sure to elect them rather than the offspring of the current power figures.

The Misanthrope said...

Deadpanann, I too agree with Bitchphd (she rarely says anything I disagree with), if I can offer you one piece of advice it would be to keep saving.

Anonymous said...

The govts and corps are running the country for their interests. Absolute power has corrupted! I do not trust any of them. The only recourse is go for higher and higher wages and invest your money where you want, not what they want/or want you to do. If they matched or exceeded what you put into their 401Ks, maybe, but many don't, they just want you to do the contributing. Corps. do not tell you where their money (money you made them) is invested. why not? Maybe the employees would like to invest there too? It's because their investments belong to an exclusive club where only the corporate elite are allowed.

Anonymous said...

Here's a news flash for United's management, which betrayed its workers in the name of "saving" the Airline.
The world doesn't need a United Airlines. Should United disappear another airline would quickly fill the vacuum.
Instead of betraying its workers, United should sell off all its assets, plow the proceeds into honoring the pension commitments it made...and turn out the lights.
In the meantime I will never fly United again.

Anonymous said...

Here's a news flash for United's management, which betrayed its workers in the name of "saving" the Airline.
The world doesn't need a United Airlines. Should United disappear another airline would quickly fill the vacuum.
Instead of betraying its workers, United should sell off all its assets, plow the proceeds into honoring the pension commitments it made...and turn out the lights.
In the meantime I will never fly United again.

Chandira said...

Yeah, that really sucked..

Deadpanann, that's good advice, keep saving. Our generation is going to be the one that will have to undo all this bullshit, you're right, we have a lot of sensible people, and thank God for that.
:-)
We are not worthless.. Don't ever feel that.
Not all baby-boomers are wealthy though. Don't get ageist about it.. ;-)

Janet said...

Feel free to beat me with the rock I've been living under, but I didn't know anything about this. How is this so?

By the way, thanks for the kind words. It means a lot.:)

Chandira said...

Janet, that rock is sometimes a blessing to be able to hide under.. ;-)