By Melissa A. Hardy
In the course of the Nineteen Eighties the inside track media have been full of studies of hovering unemployment as 'downsizing' and `restructuring' turned the new buzzwords. organisations controlled their group relief by means of expanding the recognition in their pension plans-especially their early-retirement plans. during this quantity, the authors study the U.S. car and current a full-scale research of the paintings and retirement judgements of its employees. They deal with organizational context and the good judgment of monetary incentives in employer-provided early retirement plans. The effect of pension provisions, layoffs, plant closures, attitudes approximately `generational equity', and different elements influencing the staff' assessment of the optimal time to finish their careers within the automobile are explored.
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Extra resources for Ending a Career in the Auto Industry: '30 and Out' (Springer Studies in Work and Industry)
The number fluctuated between 150,000 and 269,000 during the first 3 years of the 1980s). In late 1981 one-third of the UAW members at Ford and GM were on layoff; the gates to 22 Big Three plants had been closed, with more closures on the horizon. 5 million in 1979, was down to 950,000 in 1990, a decline of 37 percent. Hourly wages suffered. 50 below the rate for Ford and GM workers and included the loss of the AIF, the automatic COLA, and paid personal holidays. Ford and GM followed suit in 1982.
Historically, the longer vesting periods of DB plans, combined with the fact that they are not portable, have been effective in depressing labor-turnover rates. Until 1989, when federal legislation altered the rules,2 almost 90 percent of DB participants were subject to a 10-year vesting period (Clark and McDermed 1990, p. 26). In other words, orUy after 10 years of credited service with the given employer was a worker eligible to receive retirement benefits. ^ This, too, tended to depress labor-turnover rates.
Bendix 1956, Chapter 5; Fine 1969, pp. 23-27). Employerprovided pensions—"industrial pensions," in the nomenclature of the day—comprised a part of that strategy More than 700 plans were in operation by 1930, mostly in large firms in the manufacturing industries. These pensions were still granted at the discretion of the firm and usually contained disclaimers of inviolable pension rights. Nevertheless, a growing number of employers realized that the fact of a pension-eligibility age, if observed with some regularity, lent valuable legitimacy to a firm's interest in taking advantage of the then existing labor surplus by replacing workers who were deemed "past their prime" with less expensive and (it was typically assumed) more trainable, younger workers.