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Eugene

(61,974 posts)
Mon Jan 8, 2018, 02:46 PM Jan 2018

Arconic to freeze pension plans for 7,900 U.S. employees

Source: Reuters

#U.S. JANUARY 8, 2018 / 9:08 AM / UPDATED 5 HOURS AGO

Arconic to freeze pension plans for 7,900 U.S. employees

Reuters Staff
1 MIN READ

(Reuters) - U.S. specialty metals makers Arconic Inc said on Monday it would freeze defined benefit pension plans for all 7,900 of its U.S.-based salaried and non-bargained hourly employees, effective April 1.

Arconic said it expects its pre-tax pension-related expense in 2018 to be about $50 million lower than a year earlier.

The company expects its liabilities to fall by about $140 million in the first quarter of 2018 due to the reduction of future benefits.

Arconic said it would also record a pre-tax charge of about $5 million in the first quarter.

Reporting by Ankit Ajmera in Bengaluru; Editing by Savio D'Souza


https://www.reuters.com/article/us-arconic-pensions/arconic-to-freeze-pension-plans-for-7900-u-s-employees-idUSKBN1EX1DF
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Arconic to freeze pension plans for 7,900 U.S. employees (Original Post) Eugene Jan 2018 OP
Something smells to high hell. Wellstone ruled Jan 2018 #1
Here: Honeywell Wants to Buy, and Will Get, Aerospace Firm Arconic dixiegrrrrl Jan 2018 #2
Up grading Technology is buzz Wellstone ruled Jan 2018 #3
This site says that "the law" generally HeartachesNhangovers Jan 2018 #4
 

Wellstone ruled

(34,661 posts)
1. Something smells to high hell.
Mon Jan 8, 2018, 03:12 PM
Jan 2018

Another take over target? Headed to Bankruptcy Court? Corporate Raider looking at the Pension Fund?

dixiegrrrrl

(60,010 posts)
2. Here: Honeywell Wants to Buy, and Will Get, Aerospace Firm Arconic
Mon Jan 8, 2018, 03:40 PM
Jan 2018
Aerospace parts maker Arconic Inc. - under pressure from activist Elliott Management's Paul Singer -- is likely to be sold in the coming months to Honeywell International after it completes a major spinoff leaving an aircraft division it needs to make bigger.


https://www.thestreet.com/story/14408258/1/cramer-honeywell-wants-and-will-get-aerospace-firm-arconic.html

but then there is this:
Already Muskegon County's largest industrial employer, Arconic Inc. plans to add jobs and invest locally.

The company plans to invest in high-tech machinery and equipment at its facilities in Whitehall, a project that is expected to generate investment of up to $10 million and create 38 jobs over the next several years.

Arconic was awarded a $400,000 Michigan Business Development Program performance-based grant from the Michigan Strategic Fund (MSF). Michigan was chosen over competing sites in multiple states.

http://www.mlive.com/news/muskegon/index.ssf/2018/01/arconic_to_invest_10m_in_west.html

So, sounds as if Arconic is selling a huge chunk of itself, but keeping another part. The sale seems to include an agreement to get rid of some debt/obligations. Very bad when companies can just decide to not honor pensions.
AND
Arconic has divisions all over the globe.
https://www.arconic.com/global/en/contact/locations.asp
 

Wellstone ruled

(34,661 posts)
3. Up grading Technology is buzz
Mon Jan 8, 2018, 03:54 PM
Jan 2018

for replacing human power for Robotic Power. If Paul Singer is involved,well,kiss those Pensions good bye. Singer and Icahn work together ripping companies apart .

Honeywell used to be a well run Company,not any more. Most of their Business is based in Mexico,yes they have Engineering and Contracting,which is their Military interest,in the States. Hunch is,most of the Workers involved are going to be gone with in three years.

Spend only three years in this industry and remember the signs,after reading the story,going to get ugly.

4. This site says that "the law" generally
Mon Jan 8, 2018, 06:22 PM
Jan 2018

allows pension freezes, but that whatever benefits have already been earned by employees must still be paid. And sometimes, the "freeze" only applies to new employees. The article doesn't say which is the case here, but in any case, your earned pension benefits can't just be taken away:

[link:http://www.pensionrights.org/publications/fact-sheet/pension-freezes|

For long-term employees who have planned for a specific pension amount, though, this must be a shock and a life-changing event.

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