In a new and bold move aimed at saving money, cellphone manufacturer Motorola said it will suspend its share on the 401(k) employee retirement benefit plan monthly contributions. This is to achieve its earlier announcement of saving $800 million. Freezing the pension plan is one of the steps needed by the company to boost its savings program.
Two points on this. First, suspending the pension contributions should not be an option. The employee benefits should not be made as sacrificial lamb in the company’s effort to save money. Second, if the firm really wants some savings, the managers’ and executives’ hefty pays should be reduced and not the benefits due to the ordinary employees. While it is true that Motorola is experiencing a slow down in its sales performance, it is not the employee’s fault but largely by the “strategists” in the company – the executives and managers. Therefore, the employee benefits should not be sacrificed.
Posted by Jones on January 11th, 2009 :: Filed under $$$ CRISIS, SIMPLY SCANDALOUS
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