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GM Bankruptcy: HuffPost Readers Report The Hurt

First Posted: 07/11/09 06:12 AM ET Updated: 05/25/11 02:25 PM ET

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The Huffington Post asked readers on June 2 to weigh in on how the General Motors bankruptcy would affect their towns and lives. Dozens of residents of the long-suffering Rust Belt responded with sad stories, some long, some short. Some really short:

"I was born and raised in Flint," wrote Joseph MacDonald. "Enough said."

Same goes for Al Kelush, who grew up in Flushing, just 10 miles from Flint. "Need I say more?" asked Kelush, who did in fact say more before cutting himself off. "I could go on, but my blood pressure has already gone up too far."

Many readers provided some narrative about their GM experience. Jacob Hicks wrote about how towns affected by the bankruptcy would go through the same process that had afflicted his hometown of Danville, Ill., when GM shut down a plant there in 1996.

"The effects of that closing have literally destroyed the place I called home for nearly 20 years," Hicks wrote. "Jobs moved out little by little and now, two decades later, Danville is a shell of its former self. It was never a great place, but the effects of GM's pull out were severe and the town will probably never recover. The town's losing a GM factory due to the bankruptcy restructuring will, unfortunately, suffer just as Danville has. It will be devastating and the places these people call home will never be the same. I feel terribly and I empathize with them as I know exactly what the future holds for them."

Blaire Jackson, Clio, Mich., wrote about GM roots in the family:

My father and brother are current GM employees. My mother, grandfathers, aunt, uncle are all retirees of GM. My great grandfather worked for GM. I live in Clio Michigan, which is about 15 minutes from Flint. Everyday when I go to college (UMFlint), I see the parking lot that was Buick City. I live and breathe the effects everyday.

Ivan Gaytan wrote:

I'm from Mansfield, Ohio though currently attending school in Chicago. I worry not only about my parents, whose restaurant will surely be affected by the closing of the GM plant in Mansfield, but the city of Mansfield altogether. Independent businesses have not flourished in our small town in YEARS.

Jerry Mallicoat of Springboro, Ohio, wrote:

My mother is a surviving spouse of a GM retiree. She is 85 and even though she and my father worked and saved for many years to build a nice middle-class life, she still relies on his GM retiree health benefits. She has several serious eyesight problems, including a detached retina and mild glaucoma, which require her to see a specialist ophthalmologist several times a year. If GM/UAW discontinue vision and dental benefits as part of their bankruptcy, as reported, my mother will need to start spending her savings to pay for her expensive eye care. I believe vision and dental benefits are only the first sacrifices and that eventually GM/UAW will dramatically scale back all of their benefits.

Often the people who chide GM and the UAW for alleged years of mismanagement and rich benefits forget about the hundreds of thousands of retirees who had no real decision-making authority about business decisions over the years. Yet, they worked very hard to make GM the powerhouse it became and in return they had legally negotiated and contractual benefits that many rely on, and many do not have the means to replace those benefits if lost. Unlike the Wall Street bank executives who got to keep their hefty bonuses because they were legal and contractual, UAW union workers will likely have to give up their contractual benefits, and it just doesn't seem fair.

I don't begrudge anyone their rightful due for dedication and hardwork, particularly if there are legal contracts guaranteeing their compensation. Yet, most of the GM/UAW retirees were not responsible for the company's bad decision-making over the years while many of the Wall Street bankers were. It's the blue-collar little guy that is getting shafted amidst all this economic mess. And, it is thanks to unions of all types that most U.S. workers enjoy workplace benefits today. Most companies, union or otherwise, had to match the benchmark workplace benefits unions negotiated over the years. So those who criticize unions should remember that and be a little more respectful.

And many thanks to Kay Peariso, who shared the story of her longstanding family ties to Flint and GM:

My husband and daughter work for GM PowerTrain Flint North that make the transmissions for the Buick La Crosse. They will be closing by the end of 2010 or possibly sooner effecting almost 700 employees. That factory is in Flint, Michigan.

Let me tell you a story about Flint, Michigan and my family ties to the company. GM was born in Flint, Michigan in 1908. My grandfather started working for the company in 1928. He was an employee at the time of the famous "Sit Down Strike" that gave birth to the UAW. I am proud of that. People don't realize that prior to the UAW many men died on the job or as a result of injury. People were burned. People fell in pits. People were crushed to death in presses. People crushed by chassies, axles, autos, engines, etc falling on them. People were exposed to dangerous chemicals and received severe chemical burns. People breathed in coal dust with no masks. And even more. They were forced to sit in lunchrooms while the line was down with no pay. They had no rights and were treated unfairly and inhumanely. They only made 4 cents an hour while the Hoover-like men in the offices just kept getting richer and richer. That's all why the UAW started. The UAW is responsible for setting minimum wage, health and safety standards in the workplace OSHA, fairness and anti-discrimination laws, health care and played a role in social security much more which benefits everyone and everyone's workplace. The UAW built the middle class.

When my father hired into the Buick Motors Factory in 1962 there were over 20,000 employees in that plant. When my husband hired into that plant in 1978 there were 14,000 employees. Then the workforce started taking a tumble to the bottom. They have had lay off after lay off. In the mid-nineties Buick left the plant and that's when it became PowerTrain Flint North with only a couple of thousand employees left. Today there are somewhere between 600 or 700 left.

Flint, Michigan already looks like a war zone that a bomb went off in. There are too many homes boarded up and abandoned to count. I have never seen abandoned homes in my suburban neighborhood until about 4 yrs. ago. There are several factories that sit empty and closed or empty, brown field lots where they use to be. School after school has been closed. Business after business has either closed or left town. The crime rate is ridiculous. The cases of alcoholism and drug use has skyrocketed. The infant mortality is one of the worst in the nation. Child neglect and abuse is rampant. The homelessness is out of control. In 2000, 38% of the population lived in poverty and it will continue to climb. We have an unemployment rate over 20% already and that is due to increase real soon. Charities have nothing to give, when they do give they run out before they can even service half of the needy. Therefore, people are going hungry and without basic necessities. The police and fire fighters has been cut to dangerous levels. And the jails have no room at the inn. It's all about to get worse now. This is what happens when a factory or factories leave a town.

The UAW workers are very charitable. They run two direct charities, Old News Boys and United Way. Old Newsboys gives clothing and toys to children at Christmas time. They also started United Way years ago. They provide several services to the needy and the rest of the community. Several of the unions also collect for Toys for Tots. My husband's union hall has a Christmas party for children every year. They have several dinner for the retirees. They also have fund raiser for numerous charities. That will all be hit very hard.

"We" aren't greedy, rich people just because "we" work for the UAW, nor are mid to low level white collar workers that work for GM. "We" just wanted to earn a decent middle class living just like everyone else. We have faces, we have families, we are real living human beings, we are not just numbers and talking points.

Peariso wrote that she has eight family members, "still working for GM until the plants close."

FOLLOW HUFFPOST BUSINESS

The Huffington Post asked readers on June 2 to weigh in on how the General Motors bankruptcy would affect their towns and lives. Dozens of residents of the long-suffering Rust Belt responded with sad ...
The Huffington Post asked readers on June 2 to weigh in on how the General Motors bankruptcy would affect their towns and lives. Dozens of residents of the long-suffering Rust Belt responded with sad ...
 
 
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HUFFPOST SUPER USER
atexasdem
Pointing out the foolishness of republican voters.
01:14 AM on 06/12/2009
Lets face it, GM made bad decision after bad decision and now they are paying the price. It isn't workers who make those decisions, it's management. Any company is that way. "Republicans say let them die". If your a loyal republican you say that too. Republicans support buying our military aircraft from France instead of America. Maybe there's a message there somewhere. I'm fortunate, as a tradesman I made the decision many years ago to go where the work is. I never set down roots in any community. Financialy I have benefited from that decision. I do however feel sorry for those who bet their future on local industry and local communities.
Next time you go to the polls, remember who tried to save your jobs and who wanted to end your jobs.
Who destroyed the economy and who developed a "stimulas package" trying to create new jobs? Who developed an economy where you couldn't keep your home and who tried to help you save your home and life savings? Who condemmed you because you belonged to a union? It certainly wasn't the democrats. Remember that when you make that mark on your ballot.
08:42 PM on 06/11/2009
It's like telling earthquake survivors..."you chose to live near a fault line." Only there was no fault line when they moved there. A 4 foot wide fault line appeared in the middle of Detroit, and the people were screwed.
03:26 PM on 06/11/2009
There are an amazing number of people on here haughtily telling people who have no boots that they should pull themselves up by the bootstraps. Zero compassion for the tribulatons of their fellow citizens. If an earthquake hits California, should our attitude then be you shouldn't have lived near a fault line, you fools? If you lose your home to a forest fire, should we smugly say you shouldn't live near the forest? If a hurricane hits the coast, should we look away because everyone knows if you live on the coast that's a risk you take? Or should we forget the contempt flung at the "rust belt" and show compassion, not to mention federal funding to rebuild? Which kind of country are we -- one that cares for our fellow citizens, or one that takes pleasure in the pain of our citizens?

When huge numbers of people who are willing to work hard can't get a job or work in jobs that don't even get them above the poverty line, folks there is a problem with the system. The people at the bottom of the system are left to fight over crumbs.
04:23 PM on 06/11/2009
AMEN!!!!!
08:47 AM on 06/12/2009
One of the better comments I've heard anyone make here...

Not too sure how many people here realize how hard it is to get a job in this economy. Or just up and leave everything... your family, friends, house, etc. Or try to sell your house in one of the nastiest markets in the country. I wonder if people have seen photos of career fairs that have been held in the state, where there are thousands of people jockeying for hundreds of jobs.

Alas, people realize that they can say anything on this site and get away with it. There are also some people here who take themselves too seriously, too, and want to ram their jaded opinions down your throat as if this were their soapbox to stand on.
01:15 PM on 06/11/2009
1st 100 days - There are 2.9 million more people unemployed in May than there were

unemployed in January. The unemployment rate went from 7.6% to 9.4%.
Since May 2008, we have lost 5.5 million jobs. The biggest losers were:
Manufacturing 1.5 million lost
Finance & Prof Serv 1.5 million lost
Construction 1.1 million lost
Retail & Leisure 1.3 million lost

one of my new favorite finance websites: href=".http://kl.am/tsc ">Econ & Finance Articles Updated Daily

Having said that, unless we rethink the way we use our wealth, this world is doomed.

al-Waleed bin Talal, however he came by his wealth is in a position to make a difference.

Instead he chooses conspicuous self-consumption.
12:04 AM on 06/11/2009
I am Kay Peariso from the above story. I have spent months defending the company and defending who we are, no more. We are who we are. If people choice to spew out right lies about us or half truths, so be it. That's their problem and no longer will it be mine. My family and I have no control over the few unproductive employees that work for the company, white shirt or blue shirt. We have no control over the companies business decisions. We have no control over the actions of OUR FELLOW AMERICANS and how many of them chose to support foreign companies over their own. We have no control over what they think about the vehicles we build and the misconceptions and outright lies they spew about them.

Here are my family members that are still working for a minute, you know, the ones that some of you hate:

Jim (my husband) - Skilled Trades Shop Committeeman - associate's degree
Kristina (my daughter) - Contract worker - associate's degree
Jeanette (sister in law) - Mechanical Engineer - master's degree
Jim (brother in law) - Mechanical Engineer - master's degree
Jerome (brother in law) - Electrical Engineer - master's degree
Scott (brother) - Truck Driver
Roger (cousin) - Assembly Line
Ray (cousin) - Skilled Trades PipeFitter - associate's degree

I mentioned these fine people because I felt they deserve to be recognized.
01:45 PM on 06/11/2009
So Kay, why were you betting your life on a business model that didn't work for at least a decade? Especially if you were on the inside and could see daily that it didn't work? What were you hoping to achieve? The demise of GM is certainly not your fault. But while you keep saying that you have no control over the poor decisions of management, you do have control over your life. And the problem is that you keep hanging on to a sinking boat lamenting that the boat is sinking and that the captain is no good. That is not a strategy to go through life. YOU are responsible for YOUR life and YOUR family. You are not responsible for what happens to GM. And in return they are not responsible for what happens to you.

As for the recognition... there are plenty of fine people who are producing just as good or even better product than the folks at GM and who know how to make a profit. These people are all over the country and they are working just as hard or even harder than your folks.

You are basically asking us to cheer for the losers... while you have no sympathy for those who keep paying for this mess with their taxes from their still very profitable economic activities.

I am asking you, do you really think that's right?
03:13 PM on 06/11/2009
I'm not asking you for_ _ _ _!!!!!!!!!! Now go away and bother someone else....
11:09 PM on 06/10/2009
I'm a psychotherapist in metro Detroit. In the past two weeks, I've seen a significant increase in suicidal patients. Most people have been dealing with overwhelming uncertainty for the past 3 years, much longer than the rest of the country.

It's getting to the breaking point now. The dominoes are starting to fall...teachers, policemen, engineers, nurses, everyone is getting laid off. In some families, both Mom and Dad have been laid off. It's really getting grim, with no real answers.
01:50 PM on 06/11/2009
There have been real answers. They were given to you thirty years ago by Jimmy Carter and smart people have been repeating them ever since. You were told by reality what to do last year. It came knocking with $140/barrel. Absolutely nobody over there seems to have listened.

I understand that your patients are stressed, but truth to be told, they are stressed because of their own collective actions. The way out of this is the same as the way out of drugs: admit that there are fundamental problems. Acknowledge that there are no short or even medium term solutions. The only thing there is left to do now is to slowly pull this thing out of the ditch, one day at a time.
11:04 PM on 06/10/2009
Agreed. There is no "South Detroit." And herein lies the irony....Pens fans don't know the difference.
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06:22 PM on 06/10/2009
There are two sides to every story. Yes, in the first 40-50 years of the industrial revolution factory workers were treated like animals. Read The Jungle, by Upton Sinclair. It will make your toes curl up. There should have been unions, and the gains were hard won. I have no problem with that.

But the pendulum swings both ways. I have been part of management in dealing with trade unions, and what the union leadership has done is to create their own slave dependency. The union workers I dealt with had no idea who was paying their paychecks, i.e. me. They had no idea what was happening with their union dues, and didn't ask for fear of losing their job. They considered their union as their employers. Union negotiators were smug and arrogant, making demands that threatened to break the company financially. Did they care about that? No.

So, like everything else, the pendulum swung too far in favor of the unions. Then, they had to make concessions and the pendulum swung back to management. Back and forth it goes, and BOTH sides have to share in the blame. It's a shame that labor union history is so rife with hostility, but that's what causes these swings.
11:21 PM on 06/10/2009
You management guys got better salaries because of the guts of the unionized folks, you wouldn't buck the boss because you were probably a suck up, and looked down on the so called peons on the line.
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HUFFPOST COMMUNITY MODERATOR
dandypuddin
04:41 PM on 06/10/2009
At the height of the most prosperous times for the middle class in America, union membership was around 30%. Now it is under 9% and dropping. Did that improve your quality of life? I think not.
04:11 PM on 06/10/2009
I keep hearing from both left and right that the American auto industry is crucial to the country. They say if it fails it will throw our economy into a depression. They say it’s a national security issue because we need to be able to manufacture our own vehicles in times of war. I say that any industry that’s so crucial to our country should be taken over by the government completely. Not 64%, but completely. The government is responsible for the security and welfare of the citizens. Anything so critical to the daily lives of those citizens should be government controlled to ensure that it will always be around. There’s no difference between what I’m suggesting and the government taking over healthcare.
04:48 PM on 06/10/2009
Your analogy sucks. I never bought a GM car in my life and won't have to because there is Honda and Toyota, BMW and Mercedes, VW and Fiat and scores of other makes. So there is really no need for the government to take over anything... all you have to do is to walk one block down the road to the next dealership.

As for health care, the government isn't taking that over, either. We are merely talking about regulating the funding of health care. The providers would stay the same, the cost and payment structure would change. Vladimir Ilyich is probably spinning in his Mausoleum at 1200rpm right now.
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06:12 PM on 06/10/2009
Ulyanov.
06:40 PM on 06/10/2009
You must be living in a cave.

It has always been jobs and suppliers.
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HUFFPOST COMMUNITY MODERATOR
progressivegreg
Scotty, beam me up
11:50 AM on 06/11/2009
I don't want to drive a Yugo!
04:05 PM on 06/10/2009
atlantajoe is pretty vocal. He must have had an early day shuffling CDS for Wallstreet.
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mapleaforever
"Exit, stage left..."
04:04 PM on 06/10/2009
It didn't take a bankruptcy to trash Flint (MI) and Anderson (IN).

It was just GM business as usual.
04:02 PM on 06/10/2009
I keep hearing the fascist-right talk about Obamas' "mob ties". I WISH!! Most of us would be happy as hell to replace the current Wallstreet robber-barons with even Capone or Luciano. They were far less violent, more philanthropic and had much, much more class than the Capitalist Elite.

I'd pay what little I have left to see the "above the law" celebrity corporate criminals washing ashore from Lake Michigan.
03:53 PM on 06/10/2009
Report the Hurt???

It doesn't take a Rhodes Scholar to figure out Detroit is almost completely gone. Republicans have just about won, the Middle Class has been destroyed.

Now it's time for the real revolution.
04:20 PM on 06/10/2009
YES! Obama is moving us forward but I fear he won't move us forward enough. Any industry so vital to the country should be completely run buy the government.
04:51 PM on 06/10/2009
They tried that in Eastern Germany, didn't they. The result was great and is the eternally fantastic "Trabant", a car made from lawn mower engines and a pseudo-plastic. The best part about it was the delivery, which took about 18 years.
03:40 PM on 06/10/2009
This was brought about by GMAC... & NOT the auto division.