Reuters: GM suspends 401(k) match for salaried employees

[question everything]

GM suspends 401(k) match for salaried employees

General Motors Corp. is suspending contributions to its 401(k) retirement savings plan for salaried workers, a spokesman said on Thursday.

"We continue to monitor the business in determining when to reinstate the matching contributions," GM spokesman Robert Herta said.

The world's largest automaker was also dropping the requirement that up to 3 percent of worker's contributions and 100 percent of the automaker's contribution be invested in GM shares. This was done to give employees more flexibility to choose their stocks and mutual funds, Herta said, adding that the changes take effect January 1.

GM now contributes 20 cents for each $1 that workers invest in the 401(k) plan up to 6 percent of an employee's base salary, Herta said. GM last year reduced its 401(k) match from 50 cents on the dollar to 20 cents.

(snip)

http://news.yahoo.com/s/nm/20051215/bs_nm/autos_gm_salaried_dc

[aquart]

1. And the CEO, COO, CFO compensation?

Has that been proportionally reduced?

[MountainLaurel]

2. Hahahahaha

Surely you jest: I'd bet their stock options just went up. Hell, stockholders are probably why they did this to begin with.

[MaineDem]

12. Sorry, replied to wrong post. (nt)

[The_Casual_Observer]

3. Most corporations will probably follow suit

[MaineDem]

15. Verizon just increased theirs to 150%

Of course they dropped the separate pension plan.

[On the Road]

16. You Beat Me to It

As a Verizon employee, I'll actually be relatively unaffected because I've been with the company for 20 years. The people who get screwed are those in their late 30s with 10 years experience and difficulty starting another career. Their pension benefit will be frozen as of next June. But everyone gets a bonus of increased 401k contributions and an additional 18 months credited service, so it's more generous than what some corporations are doing.

I actually don't have a problem with the GM decision because of their poor financial position. I'm sure that contributions to the top executives are included, but there are a lot of other forms of compensation to make up for them. It's an insult to the shareholders AND the employees for the executives to pay themselves the kind of salaries they get.

[havocmom]

4. Employers to workers: you are SO fucked

We will keep lowering wages. We will keep stiffing you on retirement promises. You won't be able to save for old age on what we pay. You stop and you die.

[OrangeCountyDemocrat]

9. Don't Forget The Impending Bankruptcy

You know it's coming. The employees should be thankful they still have a job, and not worry about all the benefits they're going to lose on the way down. Pretty soon they'll be thankful to be getting a paycheck from GM as it crumbles.

[question everything]

20. One of the few manufacturing jobs left

Starting with the late 80s and through the 90s, before the massive outsourcing, many of lamented the fact that 2/3 of the economy was service oriented: flipping hamburgers, selling expensive jewelry at Macy, selling houses, "consulting," decorating, being personal shoppers, baby sitting, medical lab technician - etc. All money recycling without anything new being generated.

A recent report about Doha had a graph showing that 79% of the U.S. economy comes from service.

Once Ford and GM will go in the way of U.S. Steel, we probably will see an increase in this number.

I am not an economist, but I am having hard time understanding how an economy can prosper with all of us just servicing each other.

It is almost like we are back to some 3000 years ago when we would barter for services and goods. But at least many were farmers and ranchers and artisans who actually produced something.

But, hey, some call this progress.

[Kolesar]

5. Few companies have a retirement plan *and* match 401k contributions

happy holidays

[DS1]

7. If I had the choice I'd take the 401k

At least with a 401K, I can control the money ( unless I work for GM ), and they can't take it away from me at the last minute - it's MINE. And that's the attitude the American worker has to learn to get used to, pensions are a thing of the past, get your money now or bag groceries until you drop dead in aisle six on your way to your timed 15 minute break.

[Kolesar]

10. Public employees are the next retirees to get "crammed down"

State governments have huge obligations to their retirees. As medical costs, and especially prescription costs, go up, the states are going to fail to keep up with them.

[Angry Girl]

6. Ford chairman got 51% pay boost last year to $22 million (and more crap)

http://www.detnews.com/2005/autosinsider/0504/08/B02-142586.htm

• Chief Operating Officer Jim Padilla, who also became president on Feb. 1, received a 2004 salary of $966,667, up from $900,000 in 2003. His bonus - including $1.18 million in cash and 69,000 shares of unrestricted common stock worth $854,910 -- totaled slightly more than $2 million.

• Nick Scheele, who retired as president of Ford on Feb. 1, received a salary of $1 million, the same as 2003. His 2004 bonus of $1.5 million consisted of $1.18 million in cash and a grant of 27,000 shares of restricted shares valued at $334,530. In addition, Ford awarded Scheele options to purchase 81,168 shares of common stock in long-term compensation.

• Allan Gilmour, who retired as vice chairman Feb. 1, collected $1.05 million in salary and a bonus worth $1.52 million. In 2003, Gilmour earned $912,000 in salary, and a bonus of $750,000.

• Greg Smith, executive vice president and president of Ford's Americas operations, earned $756,667 in salary and $1.12 million in bonus, consisting of $836,000 in cash and a grant of 23,000 shares of unrestricted common stock valued at $284,970.
http://www.detnews.com/2005/autosinsider/0504/08/B02-142586.htm


Corruption in America: Big Three Execs Get Huge Pay To Ruin Auto Sector

Wagoner received a $2.2 million salary that year; plus a $2.46 million bonus; plus 400,000 stock options valued at $5.1 million; plus $78,000 in perks including "personal use of company aircraft"; plus $79,000 as a GM contribution to his "savings plan." Counting some other benefits, Wagoner's total compensation came to over $10 million; this does not count an additional lavish pension benefit.

GM's Chairman Bob Lutz, and its chief financial officer, John Devine, each received total compensation packages of $6.4 million in 2004. It is estimated that the GM top management team took in more than $50 million in compensation for the year.

http://www.larouchepub.com/other/2005/3234auto_execs.html

[OrangeCountyDemocrat]

8. Yeah....Right.....Sure....

"We continue to monitor the business in determining when to reinstate the matching contributions," GM spokesman Robert Herta said.

Like how about NEVER! Why don't you just be honest, and say they're as gone as the Social Security Contributions I've been making these past 20 years. Gone like the wind!

[SpiralHawk]

11. "All your benefits are belong to us." - Republican Cabal Corporatists

eom

[tabasco]

13. Continuing spiral downward as the robber barons destroy

our Nation, with 37% approval of the American People.

Suffice it to say I am pessimistic about the future of the country.

[Coastie for Truth]

14. What GM should have done

is quit selling selling "Your father's Buick - designed by Harley Earle" and gone with something like the Toyota Yaris (coming to the US this spring)

<>

40 mpg and a cute

[question everything]

18. It IS Cute

Going to compete with the Mini Cooper?

[Coastie for Truth]

19. For our family

better then the Mini Cooper--
1. Auto trannie
2. Four doors
3. A/C
4. Similar price point

[sarcasmo]

17. I give a swift Kick and Nom to this story.

This is just the start for GM on their way to declaring Bankruptcy. IMHO GM will declare Bankrupt by the end of 07. Delphi's bills and the high # of workers waiting on their pensions will make Bankruptcy the easy way out for the fallen big three automaker.

[llmart]

21. Nothing new.....

Chrysler suspended their match for I believe 4 years right after Chimpy took office. They just started it up again this year and the percentage they match is less than it used to be.

[Sadie5]

22. Don't buy into this

"I actually don't have a problem with the GM decision because of their poor financial position".

GM has many holdings which are making big bucks. Talk about a pack of liars...

[PatriotGames]

23. GM _NEEDS_ to make cars that people will want...

There are hardly any stylish cars in their line-up. Make good looking cars, and people will buy them.