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CNN Sunday Morning

Interview With John Challenger

Aired November 24, 2002 - 11:09   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL LIN, CNN ANCHOR: Thousands of National Guard and reserve members are trying to get their lives in order just in case there is a call to arms against Iraq. Currently, there are more than 50,000 reservists on active duty, with most assigned to homeland duty. The Pentagon says between 100,000 to 200,000 more would be called up if there is a war.
Our guest, John Challenger, has some planning advice for reservists. He is CEO of Challenger, Gray & Christmas, an international outplacement consulting firm, and he joins us live from Chicago.

John, I think this is advice we can all take, actually, any time that a family member has to leave suddenly for any reason. And some of these guys are going to get very short notice. What is the first thing that they need to do? Should they notify their employer first off? And what are their rights there?

JOHN CHALLENGER, CEO, CHALLENGER, GRAY & CHRISTMAS: Exactly right, Carol. They should go straight to their employer and tell them that they are a reservist. Many have not. Often in employment, it's not something that you are going and be required to tell your employer or even tell them, because they might say, well, there would be a better candidate. So now it's important to get that information across so the employer can prepare.

LIN: Is your job protected, though?

CHALLENGER: Your job is protected. You might be gone from 30 days up to two years and you have a right when you come back that employer must prepare for that, to get your job back with the salary you had before.

LIN: All right. What if you own your own business? Should you -- should you sign away some sort of rights to somebody who can help authorize payment to employees, that sort of thing?

CHALLENGER: That's a good idea. Certainly you ought to go out to your customers, tell them what's going on, so that you can keep those people in place when you come back. Maybe there is someone you could ask to help with that. Also, get prospecting right now, because if you are gone for a long time, you want to do everything you can to add to your client base for that return.

LIN: Right. Now, what if you're planning on getting married in a few months and suddenly you are called up. Should you postpone the wedding? Does it help the bride or the groom if you get married right away?

CHALLENGER: Well, those are personal decisions. And there are some people who are doing just that. They're getting married now, because they don't know if they're called up whether or not that will be possible. Others might very well decide and defer. It is an emotionally difficult time for families in all areas when people are called up for this kind of duty.

LIN: Right. I am just wondering if there are any benefits -- I mean, God help if something happens to the reservist overseas, but if there are benefits that might come to the spouse that wouldn't go to a fiancee, for example?

CHALLENGER: Certainly you do have the rights as a family member to -- to get the insurance continued. For 31 days after the reservist is called up, the company must continue to make payments. After that, for 18 months, under COBRA, the -- the individual has the right to make those payments and continue on insurance. And certainly life insurance is going to continue in place as well.

LIN: Speaking of making payments. There are some deals also with credit card companies, right, if you are a reservist going overseas?

CHALLENGER: Some great deals. The credit card company has no right to take any kind of action against you, notify a credit agency. You also can negotiate with that credit agency to keep the payments at no more than 6 percent. On your house payments, on your house payments as well, you might very well be able to only pay the interest payments to the lender.

LIN: Wow, that would be great, and certainly a big help to the family under stress while the reservist is away. Thank you so much, John Challenger.

CHALLENGER: Thank you, Carol.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired November 24, 2002 - 11:09   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: Thousands of National Guard and reserve members are trying to get their lives in order just in case there is a call to arms against Iraq. Currently, there are more than 50,000 reservists on active duty, with most assigned to homeland duty. The Pentagon says between 100,000 to 200,000 more would be called up if there is a war.
Our guest, John Challenger, has some planning advice for reservists. He is CEO of Challenger, Gray & Christmas, an international outplacement consulting firm, and he joins us live from Chicago.

John, I think this is advice we can all take, actually, any time that a family member has to leave suddenly for any reason. And some of these guys are going to get very short notice. What is the first thing that they need to do? Should they notify their employer first off? And what are their rights there?

JOHN CHALLENGER, CEO, CHALLENGER, GRAY & CHRISTMAS: Exactly right, Carol. They should go straight to their employer and tell them that they are a reservist. Many have not. Often in employment, it's not something that you are going and be required to tell your employer or even tell them, because they might say, well, there would be a better candidate. So now it's important to get that information across so the employer can prepare.

LIN: Is your job protected, though?

CHALLENGER: Your job is protected. You might be gone from 30 days up to two years and you have a right when you come back that employer must prepare for that, to get your job back with the salary you had before.

LIN: All right. What if you own your own business? Should you -- should you sign away some sort of rights to somebody who can help authorize payment to employees, that sort of thing?

CHALLENGER: That's a good idea. Certainly you ought to go out to your customers, tell them what's going on, so that you can keep those people in place when you come back. Maybe there is someone you could ask to help with that. Also, get prospecting right now, because if you are gone for a long time, you want to do everything you can to add to your client base for that return.

LIN: Right. Now, what if you're planning on getting married in a few months and suddenly you are called up. Should you postpone the wedding? Does it help the bride or the groom if you get married right away?

CHALLENGER: Well, those are personal decisions. And there are some people who are doing just that. They're getting married now, because they don't know if they're called up whether or not that will be possible. Others might very well decide and defer. It is an emotionally difficult time for families in all areas when people are called up for this kind of duty.

LIN: Right. I am just wondering if there are any benefits -- I mean, God help if something happens to the reservist overseas, but if there are benefits that might come to the spouse that wouldn't go to a fiancee, for example?

CHALLENGER: Certainly you do have the rights as a family member to -- to get the insurance continued. For 31 days after the reservist is called up, the company must continue to make payments. After that, for 18 months, under COBRA, the -- the individual has the right to make those payments and continue on insurance. And certainly life insurance is going to continue in place as well.

LIN: Speaking of making payments. There are some deals also with credit card companies, right, if you are a reservist going overseas?

CHALLENGER: Some great deals. The credit card company has no right to take any kind of action against you, notify a credit agency. You also can negotiate with that credit agency to keep the payments at no more than 6 percent. On your house payments, on your house payments as well, you might very well be able to only pay the interest payments to the lender.

LIN: Wow, that would be great, and certainly a big help to the family under stress while the reservist is away. Thank you so much, John Challenger.

CHALLENGER: Thank you, Carol.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com