Jan. 14, 2004 - 18:32 MST

THE WONDERING JEW

Drop The Other Shoe

Some of us had time to do a bit of figuring while others of us were not given the chance to try to figure it out. Whether we could afford to retire.

But once retired, we are all in the same boat. As it is, most of the time a pensioner's income is fixed with possible microscopic increases. The income stays fixed but prices and other things always keep rising. Each year we retirees fall further behind as it is, which is why we did a lot of calculating beforehand.

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I see in the Rocky Mountain News of January 14 an article by David Kesmodel of the Rocky Mountian News, headed, "UAL vies to cut retiree medical benefits"

UAL Corp. plans to seek bankruptcy-court approval to reduce the health insurance benefits of retired UAL workers, sources said, marking a major development in the carriers Chapter 11 proceedings.

United Airlines' parent, which has won $2.56 billion in annual wage and benefit cuts from its current work force, can seek changes to its retiree medical benefits by making a filing under Section 1114 of the U.S. bankruptcy code. UAL would have to go through a process that includes presenting a proposal to representatives of retirees."

"UAL is considering the reductions to ease its future cash obligations and help it emerge from bankruptcy by June 30. Denver's dominant carrier is seeking $1.6 billion in U.S. loan guarantees to help it exit Chapter 11."

Thousands of United employees elected to retire by July 1, 2003, rather than work under the carrier's newly negotiated labor contracts, so they could have the more favorable health benefits of the previous contracts during retirement.

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I can't help but think that the trouble our country is in is because of the apparent malfeasance, misfeasance or whatever other "feasance" you can think of, by the upper echelon. See Enron et al.

I can see that employees who are still working could possibly cope with wage reductions, maybe with difficulty, but yet cope.

The "Retirement Package" so to speak nowadays includes health benefits, the costs other than co-pays are borne by the company. This can of course be understood to be money to the retirees. So basically the income of the retiree will be cut by such action.

In the fifties when I had a paper route in the morning, pensioners were the majority on my route. Periodically the paper would raise it rates a nickel. At that time pensioners on my route would make their choices. Some would go to daily only, some to Sunday only or make some other sacrifice to cover the increase. Now and then I would see a pensioner who lived on my route in the super market, putting dog food in his market basket, full well knowing that this person had no pets. That was then.

So I guess each of us oldsters who are retired wonders how soon will we have to be buying dog food to survive ? How soon will we have to move because we can no longer afford house payments or rent ?

Then to have cuts in health care which means extra money out for medical reasons and unavailable for other requirements.

The company I worked for offered what amounted to early retirement to workers. For those who were too young for Social Security they were guaranteed the amount they would receive on Social Security monthly for five years. Pension according to years worked, paid health care and another "plus." All these things were promised us by the company. After retiring the company who now owned the shebang said, "We are no longer in that business so your "plus" will no longer be paid."

Somewhere along the line as naive as I am, I thought companies were supposed to be putting guaranteed money aside (in one form or another) to cover the worker's pensions when they retired. Was I wrong ? If right, where did all the money go ?

So as usual the cuts come to those least able to afford it while the upper brass floats along on their huge salaries, guarantees, golden parachutes, stock options, etc. Upper brass doesn't have to worry about groceries, rent, health care or any of the necessary things for modern survival.

UAL is not the only one, just another example of how pensioners are shoved from the table. Those of us still on pension with out cuts wonder how long it will be before we too will have to bite the bullet, those of us who still have teeth ? Living under the fear that our source of survival will Drop The Other Shoe . . . . . . . . . .

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