Economy
Related: About this forumArconic to freeze pension plans for 7,900 U.S. employees
Source: Reuters
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
Wellstone ruled
(34,661 posts)Another take over target? Headed to Bankruptcy Court? Corporate Raider looking at the Pension Fund?
dixiegrrrrl
(60,010 posts)https://www.thestreet.com/story/14408258/1/cramer-honeywell-wants-and-will-get-aerospace-firm-arconic.html
but then there is this:
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)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.
HeartachesNhangovers
(816 posts)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.