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Rising Costs
Big Business Abandoning Retirees
Jim Beaty worked for Continental Tire North America, a subsidiary of Continental AG, for thirty-two years. Now retired, he and his wife had been looking forward to spending their golden years together relaxing and traveling. That all changed when a letter from Jim’s former employer arrived in November of 2006. This letter stated that due to spiraling insurance costs, the company will be raising retirees’ premiums from $78.00 per month to a staggering $900.00 per month. The company has offered to offset this cost by adding money to retirees’ pensions — but there’s a catch. This benefit will only apply to retirees under the age of sixty-two. Jim will turn sixty-two in March of 2007. As a result, the Beatys will be paying more for health insurance in one month than they had previously paid for an entire year. It will be a full six years until Jim’s wife is eligible for Medicare and by that time, the Beaty’s will have spent tens of thousands on insurance premiums. The couple will be able to absorb this cost, but it will completely alter their lifestyle. As Jim puts it, “We’ve worked all our lives to have a dollar to do something, and now with this type of premium we’re going to live paycheck to paycheck.”
Continental is doing its best to maintain a good image in the face of this controversial move. The corporation has told the press that it is working with retirees, but in reality this could not be further from the truth. Instead of inviting the retirees as a group to discuss options, the company is calling them in one at a time and telling them what is being done. Isolating workers from one another is not a new strategy for Continental. As recently as 2004, the United Steel Workers of America have accused the company of using intimidation to keep its employees from voting in favor of a union.
Jim is shocked and angry that the company he gave thirty-two years of his life to is treating him this way. He wants to do something about it, but feels discouraged by the size and power of Continental AG. As the number one tire manufacturer in Germany, number two in Europe and number four in the world, the corporation is indeed a force to be reckoned with. He and his fellow retirees have been discussing the corporation’s decision, but, according to Jim, “nothing is organized” as of yet. In the meantime, Jim has tried contacting his elected officials. He has not had much luck. In fact, Republican State Senator John Jones is the only politician that has responded to him thus far.
The senator has told Jim that while he deeply sympathizes with the retirees, there is nothing he can do for them legally. It may be true that Senator Jones cannot correct this specific problem, but he can certainly use his power as a legislator to push for systemic change. The Health Care Justice Act of 2004 made it a policy goal to ensure that every Illinoisan has access to quality, affordable health care by July of 2007. It also set up the Adequate Health Care Task Force to study the best way to implement this policy. The Task Force will give its recommendations to the Illinois General Assembly in January of 2007. Senator Jones owes it to his constituents to consider these recommendations and help push for a bipartisan solution to our health care crisis in Illinois.
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