NEW YORK (TheStreet) --General Electric (GE - Get Report) booked $3.3 billion in savings last quarter by widening retiree-benefit cuts from salaried positions to hourly production jobs, prompting a backlash from former employees who believed a career with the company would guarantee a comfortable retirement.
The savings on retiree benefits is the largest for the Fairfield, Conn.-based company since the Affordable Care Act was passed in 2010. Starting Jan. 1, hourly production retirees who turn 65 by the start of 2018 will be cut off from GE's traditional retiree health plan and, instead, reimbursed about $1,000 a year on the cost of Medicare coverage supplements purchased through Towers Watson's (TW) OneExchange, the company said in a letter to employees. Current employees who retire by June 23, 2019, will be offered the same reimbursement.
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If you want to save a few BILLION, you can't do bad stuff to your CURRENT work force because they will leave.
ReplyDeleteBut the ones who believed the promises you made (LOL!!) about pensions and benefits and worked loyally for decades and now count on those promises to live, well, THEY can now be robbed and cheated until they're dead.
How do the GE executives sleep at night?
They probably don't. They sleep in the day and crave blood.
Keep cheering.
How do the ge executive sleep at night? They sleep extremely well in luxury.
DeletePensions are a killer to any company. You want a retirement, fund your own, like the rest of us have to do
ReplyDeleteWay to go GE!!!
I hope you get a ton of the poor lifestyle.
DeleteThat wasn't the point.
ReplyDeleteYet the stock goes up and up and that is the bottom line. Only stock holders benefit and screw everyone else.
ReplyDelete