TOLEDO, Ohio — General Motors and the United Auto Workers negotiated a Special Attrition Program in the contract the two parties agreed on in November.
This would allow new retirees to get a $50,000 lump sum payment. If they want the money, they'll have to retire at certain points in the contract.
But GM workers who planned to retire with the bonus are learning that might not happen as soon as they expected.
Tom Ruddy has worked at GM Toledo Propulsion Systems in west Toledo for 38 years. He said retirement has been something he thought about here and there, but recently, it's been on his mind more often.
"From the last contract on, I've been thinking about it real hard," Ruddy said.
He said the $50,000 bonus to retire through the program was a surprise.
"The SAP was the last thing on a lot of our minds," Ruddy said. "We just didn't think we were going to get anything like that. "
The contract allows three specific times when people can retire with the lump sum bonus. Members like Ruddy were hoping to retire in the first half of 2024.
But a letter from the UAW on Tuesday is complicating his plans. GM will now decide when workers can take the retirement window.
UAW Local 14 President Tony Totty, who represents union workers at GM Propulsion Systems, said the automaker's reason for this announcement is because the company said there might be an accounting rule that would penalize the pension fund if too many people retire at once.
But Totty said this type of bonus isn't new.
"We've dealt with these before, and if it wasn't an issue in 2019 when we had even more workers under the UAW-GM umbrella, then why would it be a thing now? It just doesn't make sense," he said.
This has already affected members. Totty said one member was sick and expecting to retire in January with the bonus.
"Unfortunately, he passed away in late January and he died wondering if his family was going to get the $50,000," Totty said. "That's how cruel this is."
As for Ruddy, he said if he's not allowed to retire with the bonus soon, he'll leave without it.
"I've given it my all for 38 years," Ruddy said. "It's time for me to go. They always said you know when it's time. I know it's time."
In a statement provided to WTOL 11, GM said they are working on the details of the program:
"GM and the UAW continue to work together to determine implementation, timing and logistics for the first round of the Special Attrition Program offered in the current labor agreement. There will be a total of three implementation windows through the life of the contract. We have no more details to share at this time."
There are currently 250 workers temporarily laid off at GM Propulsion Systems. Totty said people taking advantage of programs like the SAP could help with layoffs.