Nissan Will Cut Benefits for Retirees (health/pension cuts only in US)

[papau]

New non-manufacturing hires to lose Medicare "gap" coverage on retiring as Nissan will end all health coverage at 65. Defined Benefit Pension plan ended and "replaced" by a 401k program. Nissan US plants are non-union.

http://www.latimes.com/business/la-fi-nissan7feb07,0,4680636.story?track=tottext

Nissan Will Cut Benefits for Retirees
The Japanese automaker will curtail healthcare and pension programs for its U.S. workers.

By John O'Dell Times Staff Writer February 7, 2006

In a first for a Japanese automaker, Nissan Motor Co. is curtailing its retiree health insurance and pension programs in the U.S., saying it needs to cut costs to "remain competitive."

The move comes as concerns mount that such expenses are crippling the competitive efforts of U.S. automakers, particularly General Motors Corp. and Ford Motor Co. GM, for example, provides benefits for 1.1 million workers, their families and retirees. The beleaguered Detroit automaker has said its retiree healthcare bill alone adds $1,600 to the cost of every GM vehicle made in the U.S.

American companies in many industries have cut retiree benefits for more than a decade, but "Nissan is leading the automotive industry with such changes," said Paul Fronstin, director of the health research program at the Employee Benefit Research Institute in Washington.

Nissan will limit healthcare coverage for retirees from its U.S. manufacturing plants and will no longer pay a guaranteed monthly pension to new hires in this country, the company said in a note to employees last week.<snip>

[slor]

1. Sounds like a good time to roll out...

Social Security reform again, eh chimperor?

[Kolesar]

2. The imports have 1000 retirees vs 800,000 at "The Big Three" in the US.

[rodeodance]

3. very few pensions left in US--all in all we see these cuts coming from

many companies.

[Mr.Green93]

4. Serves them right

for turning their backs on the the Union. They can be greeters at WalMart.