Take the Money and Run! -- Accepting An Employee Buyout Offer
Posted: Saturday, February 07, 2009
by Gerry Charbonneau
http://nibblednews.typepad.com
"The trouble with retirement is that you never get a day off." - Abe Lemmons
Two friends and colleagues of mine , Mark and Doug, recently retired from the active work force in the automotive sector of the economy. They were gainfully employed as field parts attendants (warehouse support staff) in a Service Parts Operation divisional warehouse setting for one of the Big Three automotive giants.
Mark began his career path after he graduated high school. He was 19 years old and began his work path as a janitorial staff member. Eventually he learned about an opening at the warehouse and was hired a few days after his employment interview. He knew he was a hard worker and believed at the time that his future at the company was assured. The automotive parts market in those days was booming and he faithfully invested a portion of his monthly salary into the optional employee stock saving's program. He believed in supporting the company that supported him and his family.
The work was labor intensive and at times challenging but he loved the physical side of his job. Management at the time adopted an employee appreciation program. Another innovative tool the company used to foster employee suggestions was An Ideas For Excellence Program. Employees received financial rewards for their ideas if adopted by the company. The program meant to increase efficiency and address safety issues in the company. Mark frequently submitted ideas on how to improve the internal operations at the warehouse. His work was rewarding and management seemed to understand him and his needs on a personal level. He knew that he was more than just a number or lines on a graph.
Mark retired about one month ago. He received no financial incentive package to do so. He retired after 30 years of service and is almost 50 years old. Friends that know him say that his overall health has improved as well as his disposition. He has mellowed and is actively pursuing a new career.The internal political networks and the constant managerial harassment he faced daily at work have now been replaced by a gentler, more reasonable way to make a living. He was forced to sell his shares in the company at a substantial loss. He enjoyed his time at the company.
Doug , almost 60 years old, retired a few days ago and says that he is still in a state of culture shock. He reluctantly admits that yes, there is life after retiring from work. He has been with the company almost 35 years. He actively participated in the employee suggestion program and offered many invaluable ideas on how to improve or enhance the company's performance He took an active role in the well being and safety of the warehouse and its employees.
He worked in the dealership returns section of the warehouse and examined the resale potential of the parts the dealership's returned for credit. Over the years he was able to improve the efficiency and effectiveness of the dealer returns section in the warehouse.He too invested in the employee stock option and suggestion programs. He proudly labeled himself as being a company man. He believed in the company and enjoyed his time working there.
He too noticed over the years the decline in the quality of employee morale and active participation in warehouse events and the increase in the amount of scrutiny the company was placing on each and every employee. Production rates and employee performance charts and flow sheets were generated daily. The creation of a production meeting place, called The Wall, attempted to indoctrinate each employee into blindly accepting corporate values and ideals. With the recent economic downturn the amount of managerial badgering and nitpicking increased as mid level managers tried to justify their jobs and salaries.
Many of my fellow employees as well as myself are approaching the retirement year plateau. Many are awaiting for a package deal that will encourage them to retire and call it quits. The packaged incentive plans seem to be destined for upper managerial types and not the lower level grunt workers. The rumors are running rampant in the warehouse as to who will be the next person to retire. Speculation and low level hysteria and paranoia run rampant on the work floor.
When an employee faces a forced retirement situation what should a person do to cover his assets? Is a bird in the hand worth two in the bush? Is it better to forgo that 30 year retirement deadline and take any amount of monetary award the company gives you or should you bravely go about your job and hope that things will turn out for the best?
The going rate for forced retirements these days expressed in the press has been pegged at roughly $20 thousand dollars and a new car employee purchase allowance of $25 thousand as ballpark figures. But then again that is only for unionized employees and not the non unionized salaried staff working in the regional offices and distribution centers.
Each person facing this career decision must decide for him and herself the benefits and the rewards that accepting such an incentive package will offer. The rest of us will anxiously wait for the market and governmental forces to decide where we fit in to the whole scheme of things.Only the passage of time will let each employee know if he/she made the right decision for themselves and their family and their financial futures.
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Top-level comments on this article: (1 total)Deciding whether or not to retire is a big and often scary decision to make. But let me tell you, yes, there is life after retirement and quite often a more rewarding life than when you were working.I was a union worker with a large Canadian airline and took a retirement package in 2005 at the age of 55. I was very unhappy in my last five years of employment and knew that it was time to go. When the buyout was offered, I couldn't sign up fast enough.I am now in my second career as a Funeral Attendant (something I have wanted to do since my teen years) and it is wonderful. I work full-time and still collect a pension from the airlines. My take-home pay has doubled since retirement, which makes living a little easier, but it is the fact that now I am doing what I really want to do that gives me the most satisfaction.Thank you David for your comment.
Three other employees at the company retired at the end of 2008. One female self appointed executive secretary and two male shift supervisors from A and B shift. All three received a package of $75 thousand. Everyone thought that this was merely throwing good money after bad. The male supers were relatively useless: one ate donuts all day and the other kept a copy of Sports Illustrated in his back pocket as he cajoled, schmoozed and kept the men enthusiastic.
There are many people in the plant approaching the 30 year anniversary. A few are hoping they will be offered some type of monetary reward for years of service. Others fear that layoffs and a rumored three per cent pay cut scheduled for May 1st of this year will make their time at the company even more of a sham.I was pleased that, as a unionized worker, I was offered a buyout, and it wasn't all that much; just $45,000.00. When it comes to the upper executive type, I have seen executives hired on a three year contract, totally screw things up in that time frame, then retire from the company with a one million dollar bonus; for what?Sometimes company politics are a hard pill to swallow, yet we must look at what we have to work with and make the best decisions we can. Sometimes it is easier to stay with a company, even though they are treating you poorly, than to retire and step into the unknown, but like I said before, there is life after retirement, especially if you are one of those who has a dream and knows how to work for it.
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