Domestic Policy

IBM Freezes Pension Plan, Are You Next?

January 6, 2006 ⋅  E-Mail Article ⋅  Print Article ⋅ Post a comment

Welcome to the world of Globalization, your wages will be cut, your benefits reduced, and health insurance will cost you through the roof. However, do not fear, your company is raking in profits through the roof.

Fords and GM are complaining their sales are slumping, their adjustment, layoff more engineers and designers in North America. There is the key, in ‘North America’. They rely on North Americans to buy but they sure don’t want to reciprocate our loyalty by providing us with jobs. No wonder their sales are down, what did they expect? They are shipping our jobs overseas where no one buys their product, yet they expect us to buy their products, it just ain’t working any longer. Now add IBM to the list of companies who have to take away from American workers.

IBM stated late Thursday that it will begin freezing the pension plans of some 120,000 employees in North America, effective at the end of next year. Again notice the singling out of ‘North America.’. IBM says it intends to offer a more generous 401(k) plan in the pensions place.

IBM officials stated that the change is an essential need in order for IBM to remain competitive with foreign and domestic competition.

IBM has already eliminated pensions for any new hires who have started work since the beginning of 2005.

IBM is not unique in this recent action, many global U.S. employers have recently frozen, or eliminated all together, pension plans to cut costs and stay globally competitive. The companies state that these change a necessity in industries where foreign competition is tough. An official at one of the aforementioned companies stated, “These countries do not offer traditional pensions and so neither can we.”

Individuals who have their pensions frozen will earn no new benefits under those plans. Usually benefits enlarge as the number of years worked accumulates but under the new system the benefits will stay at their current point regardless of how much longer employees remain with their company.

The question must be asked, “How much longer can America go forward in the global economy and still keep its quality of life and living at its current level? With congressmen selling out to foreign lobbyist, global companies displaying no allegiances to hard working Americans, and no incentives being provided for keeping our work here in America, how much longer can we compete and yet maintain our way of life?

We need to better understand the concept of, “If you pay us to build it we can buy it, if we don’t have good jobs how we can afford your product?”

You need to contact your elected officials in Washington and advise them that they need to act in order to preserve your way of life. Europe deals with an almost 10% unemployment rate, do you want this to happen here? Utilize our government contacts link and contact your elected official, let him\her know you are concerned about preserving your current way of life.

IBM to freeze pension plan

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