I haven’t written much about the economy, the recession and such lately because I’ve cut way back on my reading about those topics. I’ve even avoided blogs I enjoy if the author is prone to writing about those things frequently. There isn’t much good news out there so I’ve just started avoiding it altogether.
However, it has been impossible to avoid the General Motors (GM) news. I know for many people it is just another company that has gone under. But not for me. I grew up in Michigan in a GM family. My dad is a GM retiree. My father-in-law is a GM retiree. It would take more than two hands to count all the family members and friends we have who are either retirees, employees, or are in companies closely tied to GM. There is no way you can be a life-long Michiganian and not have lots of ties to GM.
There’s plenty of blame to go around and I don’t have the time or energy to sit here and try to figure out what went wrong. I just feel sad and concerned for those I know who have been impacted by this. If I feel anything the most strongly it is a major sense of disillusionment that people who worked their entire lives for a company are being treated like dirt. That a company with so much over the years is now telling people when they most need it that they won’t be getting a lot of what they were promised.
I’m sure many people outside of Michigan and outside of the auto industry look at the situation differently. But for people to work decades for a company and then be told when they are beyond the age of working that they are not going to receive what they were planning on is criminal in my opinion. But then so much of what is going on right now is criminal whether it is in the auto industry, banking, government or whatever.
David and I have continued to cut back our spending as we don’t see any hopeful signs of a recovery in the near future. We’re choosing to not renew things like our zoo membership next week. We’ve not bought clothes except necessities that had to be replaced. We’ve pretty much stopped eating out except for a mocha when we’re on the go or a special deal on a carryout pizza. About the only extra area where we are still spending is learning things for Caroline and even then we are buying a lot less than we might under different circumstances.
We’re fortunate that our situation is not desperate like so many people’s. And we don’t have to worry about ending up on the street if things get tough. We’ve joked for several years about moving into my parents’ basement if times got tough. (They have a larger house with a fully-finished walkout basement with multiple rooms.) It’s always been kind of a joke as we’ve anticipated the housing bubble bursting and the stock market tanking, things my dad has been predicting for years. But lately I’ve started wondering if the joke might turn real at some point.
So, anyway, that’s some things I’ve been thinking about lately. I don’t plan on writing much on this stuff because it’s frankly really depressing and I don’t think beautiful June days should be wasted on such stuff. But there are a lot of people struggling and hurting out there. I’m sure some of the people reading this are facing some very difficult situations and choices. And I don’t see things improving anytime soon. But I’ll sure be glad to be proven wrong, if I am.
Hi Sallie,
I live in southern Ontario, Canada, which is not quite as dependent on the auto industry as Michigan, but it is still significant here.
I have mixed feelings on the GM situation. On one hand, I really do feel for the retirees who are now or could be in a very difficult situation. In Canada, I do not think they are owed any more than regular Canada Pension Plan/Old Age Security benefits from taxpayers though. I’m not sure what the public pension plan is like in the US (or even if there is one), so I’m not sure what the options are there.
On the other hand, the arrogance and entitlement of the auto workers and their unions amazes me. How can people really think that a job on an assembly line deserves a $70,00 0 a year plus benefits and pension salary? I heard years ago that the CAW (Canadian Auto Workers) union will be the demise of GM, Ford and Chrysler because of their demands on the company. We are now seeing that to be the case. Honda and Toyota, who certainly treat their workers well, are not the same situation because their salaries and benefits were more in line with what was necessary to keep the company solvent. (And they make higher quality lower-end vehicles (ie: compare the Civic to the Cavalier), but that’s a whole other tangent….)
In general, I have to say that I think the CAW really has done themselves in. You CANNOT demand and demand and demand from the company and except that those demands will be met and kept indefinitely. It’s a painful lesson to learn, but in a capitalist society, the market will win in the end. Perhaps some prudence on the part of the union leaders over the years would have made a difference here.
The old saying “Do not bite the hand that feeds you” comes to mind. The unions, I honestly feel, are/were/will be the demise of GM.
Jen in ON
P.S. Please do not take offense at this comment. I am in no way faulting individual employees (esp. those who are retired) for this situation. I just feels that the union leaders should shoulder much of the blame for it. Likewise, my heart hurts for people facing a loss of pensions, etc. past their working years.
It is depressing. I’ve sort of tuned it out lately, as far as news goes, but I also think the media has moved on to the next thing.
I don’t really understand the whole inner workings of the car industry, but I know that there are good, hardworking individuals affected by all of this and I feel for them. As well as the rest of us who were robbed by the bankers and have seen our investments, 401ks and the like plummet.
Ever since Obama became president I’ve stopped listening to the news. My hope is definitely not built on the economy or politics, thankfully. I choose to dwell on the lovely, the good, and the pure and enjoy the many blessings God has given me. Love, Lori
JenC – I do understand what you are saying about unions. I personally have very mixed feelings about them. As a teacher, I had no interest in being a part of a union that did not represent my personal convictions and beliefs. And, in many ways, I feel the unions are to blame for a good portion of the problems in the education system today. Not all, for sure, but a lot of them. Fortunately all of the jobs I had were at private or charter schools so I never faced the decision of whether or not I would join one. On the other hand, my grandfather was killed in an industrial accident when my father was 6 years old and I truly believe factories wouldn’t be as safe as they are without unions.
I don’t know how many people who work on the line make 70k a year. Probably some who have been around a long time, but most of the longtimers left long ago. At the same time, how many people would be willing to work in those conditions? Working long hours in a non-air conditioned factory that’s over 100 degrees in the summer? Working in the noise so by the time you retire you’ve lost part of your hearing? I suspect that there are a lot of people who would not choose to work there, even if they had the opportunity to make 70k a year plus benefits.
Whether it is worth it or not to pay people those kinds of wages isn’t what bothers me right now. What bothers me is that I currently live in a culture where a person’s word doesn’t matter any longer. Where truth and honesty no longer matter. Where there are no steadfast rules for people to rely on. Where those in leadership feel they can lie, steal, cheat and do whatever they want to their own ends. I fully realize that there have always been dishonest people in positions of leadership. But the brazen criminal activity taking place in plain sight is simply appalling.
And no one seems to really care.
We’re thinking about moving back to Michigan in a couple of years, but it’s going to be a big scary leap when we do. It will probably be a good time for us to take a sabbatical year; it’s been interesting reading in the OT how God promised to make the sixth year harvest last through the seventh year, and on to the harvest of the next year.
Hi Sallie,
Thanks for understanding where I am coming from. I absolutely believe that unions have played an essential role in improving workplace conditions and ensuring that workers were treated fairly. It’s the movement from a focus on what is fair and just to getting whatever the union can squeeze out of the company that bothers me.
The 70K figure came from at article in the Toronto Star (thestar.com) about a young couple (under 30) who both worked in an auto factory in the GTA and had an income of about 140K a year. They bought a big house, had new cars, etc. and then lost their jobs. The article tried to paint a picture of this poor young couple who were just down on their luck, but what really came across was that this couple banked, completely, on an industry that has been in trouble for years. I would link to it, but the article is no longer available online for free.
Here’s a wikipedia article that gives more about the situation in Canada though: http://en.wikipedia.org/wiki/CAW#2008-09_Automotive_Crisis
I know that working on the line is hard, grueling work. I’m in no way advocating that the job is worthless or that auto workers should not be treated fairly. My point is that, at some point, something has to give. Where that point is, I don’t know for sure. So are the unions soley at fault? No. But I do believe they bear some responsibility.
I do know, however, that it is wrong to back out on one’s word or on contracts that were agreed upon. But the lack of morality in society today is too big a problem for me to tackle tonight. 🙂 However, I do feel the same way as you about it.
Thank you for this place to discuss these issues.
Blessings,
Jen in ON
I have to agree that the Unions (of all kinds – steel, auto, etc.) have had both a negative and positive impact on working conditions. You can’t blame one group on the economy’s situation right now. It is world wide. If you read about Germany, England, etc you hear the same issues – greed, over indulgence, high taxes, entitlement – the list is endless.
We were unempolyed for 7 months, went through savings that we thought would last at least 2 years. My husband had one offer of work in the last 8 months, out of state. Consequently, he is working and living out of state as I write this. We struggle with how to live in this economy, seeking God’s face through it all.
While many people saw this down turn coming, very few people I know saved enough, or planned in other areas, to survive it. Who would have thought we would have years of unemployment or high prices of every day necessities?n I’m not talking about people who lived beyond their means either. These were one income families who bought homes that they could afford, one car, no extras, very few vacations, no credit card debt, etc. We have numerous friends who retired within the last few years from BIG companies…not GM. They have all lost either all, or 90% of their retirement income from these big companies, not to mention health benefits. GM is not the only company who has failed to keep their word to people who worked hard for 30 or 40 years, proving their loyalty and integrity. It is a sad state. Yet there is a part of me who recognizes that we are all suffering from corporte sin in our country. That our President is now aligning himself with the very countries and issues that the Word of God says not to do cements this in my mind. It’s hard to think like that, but to be honest I’m with Sallie – I stopped watching the news, stopped reading blogs and don’t listen the radio much nor read newspapers. For my hope and trust in is my God, Jehovah. HE is the only provider that I look to now, and should look to no matter what state our country is in.
I so understand Sallie.
My father in law is a GM retiree, my husband is a GM retiree and our 24 year old son just took the buyout April 1.
For the record he earned nowhere near $70K. In fact, his dad didn’t earn that when he retired after 32 years.
I sold our GM stock a few weeks ago. I cried, nay, had a major meltdown when I did it. Thirty five years of our life gone with the push of a button.
God Bless.
{{{{{{{Kathy}}}}}} – I’m so sorry about the stock. I can only imagine how painful that was. 😥
Kathy, I am sorry as well. May God’s peace and comfort be with you and yours.
Fourteen years later… Nothing has improved. It’s no wonder people are tired and demoralized.