The other day our next door neighbor asked me if I wanted to split a pallet of sod. Both of our lawns had patches of dead grass and weeds and I quickly agreed. I began clearing out the old grass and prepping the ground for the new sod.
We were supposed to leave the next morning taking K’s trailer to Odom’s, a company that sells sod grown on the edge of the Florida Everglades. The next day came and went. I only saw K once walking away talking on his cell. Two more days passed and on the second evening I spotted him in his backyard. K seemed distracted as I approached and before I said anything he muttered that we could get the sod in the morning.
K’s usually an early riser so I was surprised when I didn’t see him at eight the next morning. He came out at 9:30 and we drove off. I was a bit annoyed by the way he’d put off our plans without even saying anything about it. I just figured he was preoccupied with something.
By the time we reached Odom’s I found out what it was. The airline where he works as a pilot had filed for bankruptcy. As a result, he was taking a big pay cut, the second since 2003, and there was something else.
The company, like many large corporations, matched deposits in a 401K account. In other words, for every dollar that K saved in his pension plan, the company also put a dollar in the account. A good deal. The catch, though, was that if the company went belly up, employees might lose their entire pension. That’s exactly what happened, K confided as we waited for the sod.
Now I knew why he hadn’t been too concerned with our plans. He was expecting to retire with about $1 million in his pension fund. He’d just lost the entire thing.
I mentioned that, sadly, his story sounded like an increasingly typical American tale with middle class people taking the blows when companies were mismanaged. Meanwhile, the executives responsible for the collapse would escape with golden parachutes, maybe even handsome year-end bonuses.
It’s a synchronicity because this American tale involved a company named American Airlines.
+++
PS Are we looking at the demise of the middle class? It certainly seems that way. Today, the U.S. senate rejected a bill that would extend the payroll tax – FICA deductions (Social Security). It means that most Americans will be paying about $1,000 more in taxes while the one percent continues to benefits from the Bush tax cuts. Interestingly, it revealed that Republicans will raise taxes – in spite of their pledge – as long as the rich are spared.
just bc titus voted for payroll tax cut doesn’t mean anything. she also voted to extend bush tax cuts
same story – different names – it’s in every single sector of business – from the non-profits [where i was] to american airlines – the bottom line the same – benefits and pensions falling by the wayside and into thin air – and then – no job – too depressing to me to even comment more –
but the GOOD NEWS – the senate passed a bill for how MANY BILLIONS in defense funding – all the while voting down the tax bill???
Uh-oh, hadn’t heard about the billions more for war.
I think it is more arrogance than anything. They make decisions that send the company into a downward slide, and then think they won’t be touched by the consequences. Much like Herman Cain.
Maybe a combo of elements. With the wall street fiasco, though, and the housing meltdown with derivatives, it all seems rather deliberate.
This also brings to mind a company that my husband worked for a few years ago. The company had been in trouble for some time – over levereged. A large sum of cash became available and my husband suggested to the CEO he use part of this money to make sure the pension was fully funded. The CEO was rude and curt and suggested to my husband that HE would decided where that money would go. After leaving the company, it eventually went bankrupt – and all the stock the CEO thought he had to live a comfortable life was worth nothing. The only thing he would have had – along with all of the employees that had worked for the company for many years – would have been the pension. My husband didn’t know if they ended up with one or not.
Crooks.
I can’t believe he will lose his whole pension! AA must not have funded their part – but how could he lose what he contributed himself?? What a mess we’ve become.
For years my neighbor has joked that the requirement for pilots to greet entering passengers is job training for a new career as a Walmart greeter. More truth to that than he cares to think.
What a sad story, and how painful for your friend. I am also disturbed to learn that American Airlines is going under. Not to mention the feeling once again that we control very little about our governments any more.
I’m meeting lots of people in their 50’s who can’t get work or have been laid off, and people in the 60’s who are looking for jobs at places like Walmart or Burger King because they can’t make ends meet. Recently rented the little trailor behind my house to a career architect who can’t find work.
We’re hearing more and more stories like that, Lauren.
To lose a pension like that is dreadful – pension money should surely be ring-fenced i.e. kept separate and used only for pensions. As with the banks it looks like the executives and the like never lose out.
The finances of most of the Western world are in a mess. In UK we have had the public sector workers (nurses, firemen, ambulance drivers, public office workers, customs officers etc.) on strike with promises of more to come next year. The government wants then to contribute more to pensions, receive less and wait longer before they can draw them (67+).
The Euro currency (fortunately we retained our UK pound) is in serious trouble and could collapse. The Governor of the Bank of England has admitted this could happen and have serious consequences.
The hardest hit over here are the elderly relying on state pensions and, yes, the middle classes. Benefit claimants are to get a 5.2% rise in April next year so some lower paid workers are asking if it’s worth working and getting a small or no rise next year. They could be as well off on Social Security.
I don’t know what the answer is – the rich, of course, have their money offshore and good accountants.
I was listening to the radio this morning about the Euro mess. I never really understood why countries changed their currencies to the Euro. Global chaos.
I believe that the Euro was created as a first step to a United States of Europe. Now the financial crash has got the Germans and French wanting much more integration between European countries to solve the Euro problem – and I think this has always been the long term aim. Finance could succeed where wars failed.
We (the UK) joined the European Community back in the 60s when it was solely for trade – it was then simply called the ‘Common Market’. Since then we have gradually been taken over by Europe, without any reference to the people – so many laws and regulations. Even an European flag.
May sound dramatic but it was all planned, probably as a first step towards a world government.
I agree about the world gov’t. It’s becoming increasingly obvious that the people don’t control much of anything.