Fred Arndt and his brother Dave came to General Motors straight out of high school.
They spent their entire careers building the engine cooling systems that increase the lifespan of Cadillacs and other vehicles. Dave worked in assembly; Fred, one year younger, qualified for GM University, which propelled him to work as a draftsman and engineer. They worked the line side-by-side. Dave built the parts Fred had designed.
The brothers made their way to Delphi, an auto supplier spun off from GM that builds components—seats, instrument panels, steering and suspension systems—for cars.
After more than 30 years with the company, the brothers retired in their native Michigan. They watched as Delphi’s growing labor costs dragged it into Chapter 11 bankruptcy in 2005. It would not emerge until 2009 when the government stepped in with $50 billion for GM.
And then the Arndt brothers’ paths diverged. Fred, 64, lost his health, dental, and life insurance, along with 70 percent of his pension. Dave lost five percent of his health insurance and some dental coverage.
His pension, however, was made whole.
The difference: union membership. Dave is a member of United Auto Workers—the labor group that financially backs the Democratic Party. Fred was considered management.
“I worked for GM and Delphi because I thought I had security; I worked my buns off to be a ‘company guy,’ and to be treated this way in retirement is incredible,” he said. “I knew there would be a price to pay, but I expected everyone to take a cut—not just the salaried guys.”
When GM separated from Delphi in 1999, Fred travelled far from Michigan. He worked all over Ohio and in company plants in upstate New York. As he neared retirement, he returned to Saginaw, Mich., and commuted 100 miles each day to Delphi headquarters in Troy. He retired a bit earlier than he had expected—the daily drive took its toll. He never had children, so he had plenty of savings to supplement his pension. Now he has been forced to use the money to pay for his home, groceries, and gas.
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