ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, June 25, 1996 TAG: 9606250056
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
A group of retirees from General Electric Co. picketed the Salem plant Monday, protesting their stagnant pension and medical benefits.
Jim Robertson, founder and president of a local organization of retired GE workers, said the purpose of the rally was "to let the public know about pensions." It was part of a demonstration at GE plants nationwide.
GE used to give pensions of $10 a month for every year of service so that a person who worked for GE for 20 years receives a monthly benefit of $200, Robertson said. This is in addition to Social Security.
"Retirees are hurting," Robertson said, and they want a higher pension or a cost of living adjustment. Some GE retirees are eligible for food stamps, he added.
Robertson, who is 83 and retired since 1977, said benefits have changed in recent years so that people who retire now receive more money. He said he did not know the specifics of today's retirement plan.
In addition, Robertson said, company-paid medical insurance covers only $700 a year for hospitalization, and pays nothing for physician bills and medications. He said retirees must buy their own Medicare supplementary insurance.
About 32 people took part in Monday's appearance at the Salem plant, which lasted from 7 to 11:15 a.m.
Robertson said they are among a group of 205 GE retirees who meet every other month at the Salem Civic Center for a luncheon. Mike Allee, spokesman for the company, said about 800 GE retirees live in the Roanoke Valley.
Robertson said management at the Salem plant "won't talk to us." He said he was told that negotiations for an increase in pension benefits would have to be included in talks with the union, possibly leading to a new nationwide contract.
A spokeswoman for Local 161 of the International Union of Electronic Workers said the union supports larger benefits for retirees but did not take part in Monday's demonstration. The union represents about 1,000 of the plant's 2,500 active workers.
Robertson said he did not know if the national organization of retirees would call for another rally.
GE replied to the nationwide demonstrations by issuing a statement that called its pension trust strong, well-funded and serving the best interests of GE businesses, employees and retirees.
The company said the trust has obligations to 462,000 people, including 181,000 retirees and 281,000 active employees.
The GE pension plan pays retirees a fixed monthly benefit for life, the company said, and it has met that obligation. "Increases are not provided for or required by the GE pension plan. Nevertheless, during periods of higher-than-expected inflation, GE has voluntarily made increases to pension payments. In recent years, inflation rates have dropped substantially."
The company said it has made four voluntary pension increases since 1980 - totaling nearly 28 percent. The last one was in July 1991, when eligible GE retirees received an increase of 5 percent.
"GE's record of providing pension increases for retirees compares very favorably with other large companies and our product competitors," the company said.
The statement said the company improved medical care and hospital indemnity plan benefits in 1992 and upgraded the prescription drug plan in 1995.
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