Posted on 07/26/2005 12:00:33 PM PDT by summer
If you're lucky enough to still have a pension plan, it's an endangered species after last week's move by Hewlett-Packard.
Buried in the details of a restructuring program cutting 14,500 jobs was a small reference to a decision by HP essentially dismantling its pension program to save $300 million a year. New employees won't get any pension, and many current employees will see their benefits shriveled by the time they reach retirement.
HP Chief Executive Mark Hurd, is only (pardon the pun) running with the herd. Big employers nationwide are axing pension plans, shifting to programs such as 401(k)s where employees have to fund their own retirement.
It's hard to argue with HP's urge to cut retirement costs. Intel and Dell, for example, don't offer any kind of pension plan. In December, IBM announced a cutback similar to HP, closing its pension plan to all new workers.
In a message to employees, Hurd sought to justify the move: "Our U.S. retirement programs are very expensive and the costs significantly exceed those of our competitors. ... This is a structural cost that HP must address now."...
(Excerpt) Read more at seattletimes.nwsource.com ...
yeah, the big dogs can't lose. but we can goof off on FR all day for some revenge.
Defined contribution is the only way to go these days for big companies. Governments should be FORCED to go defined contribution so we know up front what that extra donut muncher will cost.
In comparison to the private sector, government jobs seem amazingly generous in terms of benefits for employees. IMO, there's never been a better time to be in the public sector, or, a small business owner. Working for a corporation in this country is just not the way to go for new workers.
BOHICA
Bend Over Here It Comes Again
(pronounced: bow-hee-ka)
An acronym used in online chat, e-mail, or newsgroup postings.
Commonly heard at work, as in "Dude, did you hear about the latest round of layoffs? Oh brother, BOHICA."
This is a great start. Now people may start taking care of themselves. What a concept!
That may be true, but here in SC state workers have been taking a hit for several years due to increased health insurance costs.
government employment is the best ticket to a stable middle class income in the US today. working at a large company, especially one that is offshoring, is like being fed into a sausage maker very slowly. and endless stream of layoffs, outsourcings, pension and benefit reductions, and higher bonuses for the executives.
sure, but when you've worked for 20 years under one system - and have that rug pulled out from under you, where do you go to recoup the money?
Yes, until we start shooting the tax eaters.
WSJ had a feature article about the HP "restructuring" last week. Real creative thinking: "Let's fire 10pct of the workforce and cut out all the pensions." And Carly couldn't have thought of that all by herself? This is sure to save the company. Let's all rush to buy HP stock, now that they have a plan.
it won't happen. teachers are raking in ever higher salaries, the sheeple are duped that its "for the children". and with homeland security now, other branches of public employees will be using the "its for your security" as a mantra to demand more.
My company - Boeing - stopped doing pensions years ago. Now you have to save in your 401k (they will kick up to 4% if you save 8% - but you can save 20% of your salary). I would just as soon do it this way because then I control what happens and I am not depending on Boeing to "provide for me." GM is having major problems due to their stupidity in trying to provide everything for everyone when they retire. Making the individual responsible for their own retirement (along with everything else) has virtually no downside.
When I read news articles like this one, my instinct is to now avoid HP products, and instead, buy from a company that cares about its workers. These companies couldn't give a sh*t if their workers wind up in poverty, as long as their CEO's rake in a fortune. That part of the business world I can't change, but, as a consumer -- I can still shop, and buy my goods elsewhere.
You bet it sounds good. Almost NOBODY stays with one employer more than a few years anymore any way. This is the perfect way to keep it all under your control as you bounce around from job to job. Free market will dictate that HP will compensate by increasing salaries accordingly (which may sound silly, but it will happen if they want to retain their talent). Besides, this is free market in action, the Feds aren't involved, so I believe it will be good in the long run.
Well...someone's gotta pay for all those illegal immigrant's emergency room visits! I was in the ER the other day and was just flat-out amazed.
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