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GM bonuses cut because of child support
I think that this is going way to far, Corporations should keep their noses
to them selves. I mean what the hell are NCP supposed to do live in a freaking box. Regardless if the are paying on time or have arrears. I am glad that my husband doesn't work for GM. We don't have enough money now. Angel Published October 17, 2003 Child support cuts GM bonuses Many workers angry as they weren't past due By John Schneider Lansing State Journal Thousands of GM employees who pay child support in Michigan and other states found their $3,000 bonuses cut by $900 or withheld entirely this week. Ingham County Friend of the Court Donald Rei-sig called it a "unilateral and premature seizure" by General Motors Corp. But GM officials say federal law, and the time constraints of the labor contract employees recently ratified - which included the bonuses - forced them to err on the side of excess. About two-thirds of the money taken from 572 GM workers in Ingham County alone - with the blessing of the state Office of Child Support - came from people who are current in their payment or no longer under financial obligation at all. "This has to be illegal," said Allen McDaniel, a material handler at the Lansing Car Assembly plant, who completed his support obligations a year ago. His bonus check was $900 short: "How can you take money from somebody just because he might owe something?" McDaniel said GM officials assured him he would get his money eventually. Since Tuesday, when GM employees learned about the 50 percent shortages - about $900 in most cases - the Ingham Friend of the Court office has been swamped by calls from outraged clients. "People are as irate as hell," said Reisig. The bonuses - lump-sum wage increases established in the labor contract ratified Oct. 6 - started out at $3,000. Most employees took home about $1,800 after taxes. In the case of employees in Michigan with "active child or spousal support deductions," GM held half the $1,800, as specified by Michigan law. That varies from state to state. In Ohio, for example, GM withheld the entire amount. Federal law requires GM to help county and state officials enforce child-support orders through payroll deductions and diverting lump-sum payments to cover arrears. But in the cases of the bonuses distributed this week, GM (including Saturn), took 50 percent from all Michigan employees with active support deduction orders, regardless of whether they were behind in their payments. GM spokesman Tom Wickham acknowledged that it was an "unfortunate situation." But the terms of the new contract between GM and the United Auto Workers forced GM payroll officials to use a broad net, he said. Bonuses for child-support payers typically are handled like this: GM, anticipating the distribution of bonus checks, asks county or state officials to identify support payers behind in their obligations. GM uses that information to determine which bonuses get diverted. "Normally, we have 45 days to do this," Wickham said. "In this case, the contract was ratified Oct. 6, and we were contractually obligated to distribute the bonuses this week." Given that, Wickham said, GM officials decided to deduct 50 percent from the bonuses of all employees with support orders. As for why employees no longer under court orders got caught in the net, Wickham said, "We need to update our lists." GM will start releasing the money as it gets those updated lists, Wickham said. He declined to say when that will happen. Maureen Sorbet, spokeswoman for the state Family Independence Agency, said GM's action was proper. "We believe GM was honoring the language and intent of the agreement between the employer and the Office of Child Support," Sorbet said. Today that office will supply GM with a list of support payers who aren't behind in their payments, she said. "For anybody not in arrears, the money will be released," Sorbet said. "As for how quickly, you'll have to check with GM." On Thursday, in a blistering letter to GM, Reisig wrote: "Your payroll department withheld ... bonus payments, without regard to whether or not any support arrearage was owed." The letter continued: "Your action of prematurely seizing these funds and holding them, even for a relatively short period of time, does a disservice to your many employees, who both give to you their services, and who diligently pay their child support on behalf of their children." Of the 572 GM employees in Ing-ham County who received half their bonuses, 191 are behind in their support payments. "It sucks," said Doug Grace of Lansing, an Assembly plant worker who came up $900 short. "I go out of my way to make sure I don't fall behind." Contact John Schneider at 377-1175 or . |
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