Cut in worker benefits adds to economic turmoil

[marmar]

Cut in worker benefits adds to economic turmoil
By DIANE STAFFORD and RANDOLPH HEASTER
The Kansas City Star


The slumping economy is beginning to crack the foundations of employee benefits, with such bellwether companies as General Motors Corp. leading the way.

The carmaker, which is seeking a financial bailout from Congress, is cutting back company contributions to employees’ 401(k) retirement accounts and eliminating health-care benefits for its salaried retirees.

GM plans to eliminate medical benefits for salaried retirees age 65 and older on Jan. 1. Given the severity of its financial problems, the automaker says it simply no longer can afford to provide full coverage for its retirees.

Even before the credit crisis that further crippled the auto industry, GM said in July that it would cut nonunion retiree health benefits as part of a plan to bolster liquidity by $15 billion through 2009. Rivals Ford Motor Co. and Chrysler LLC already have cut costs from retiree benefits for the white-collar work force.

“Our goal is not just to change GM’s bottom line from red to black,” GM Chairman Rick Wagoner said at the time the benefits cuts were detailed. “Our goal is to change GM for the long haul. In short, our plan is not a plan to survive. It is a plan to win.”

Other big-name companies — including Frontier Airlines, Cushman & Wakefield and Dollar Thrifty — also suspended their 401(k) matches recently. .......(more)

The complete piece is at: http://www.kansascity.com/703/story/887826.html

[tech3149]

1. Be honest Mr Wagoner, you and your MBA buddies can't see anything

past the end of the next quarter. I don't know what they teach in MBA and business management programs, but it sure seems to stunt their long term, big picture of the world. I won't work for another idiot that will destroy the company to see a big return in the next few months. F you and the horse you rode in on!

[MiniMe]

2. Try taking a pay cut you blook sucking scumbag