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A General Electric employee walks past a logo, as French Economy and Finance Minister Bruno Le Maire take part to a meeting with managers and unions at the GE headquarters in Belfort, eastern France, on June 3, 2019.

A General Electric employee walks past a logo, as French Economy and Finance Minister Bruno Le Maire take part to a meeting with managers and unions at the GE headquarters in Belfort, eastern France, on June 3, 2019. (Photo: Patrick Hertzog/AFP/Getty Images)

Workers Stuck 'Paying the Ultimate Price' as GE Freezes Pensions for 20,000 Employees

"GE hired a new CEO last year with a pay package worth up to $300 million."

Andrea Germanos

Workers are stuck "paying the ultimate price for executives' poorly-timed deals," said Our Revolution on Monday after General Electric announced it was freezing the pensions of roughly 20,000 employees with salaried benefits.

The company is also offering a lump sum payout option to approximately 100,000 workers who've not yet begun taking pension payments, GE said in its Monday statement.

The changes become effective January 1, 2021. At that point, affected workers will neither accrue additional benefits nor be able to contribute to the plan.

"Returning GE to a position of strength has required us to make several difficult decisions," said GE's chief human resources officer Kevin Cox, "and today's decision to freeze the pension is no exception."

The actions, as CNN Business reported, were made "to help clean up the company's beleaguered balance sheet." Yet, as progressive observer Miles Grant, they contrast greatly with the sweet deals the company gives its CEOs.

The AARP has previously cautioned against lump sum options, warning they represent a bad financial move for individuals.

GE closed its pension to new entrants in 2012, adding to a trend of companies shifting away from traditional pensions. It's a shift progressive observers say bolsters the case for expanding Social Security.

 


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'Witness Intimidation. Clear as Day': Jan. 6 Panel Teases Evidence of Cover-Up Effort

"Add witness tampering to the laundry list of crimes Trump and his allies must be charged with," said professor Robert Reich.

Jessica Corbett ·


'Bombshell After Bombshell' Dropped as Jan. 6 Testimony Homes In On Trump Guilt

"Hutchinson's testimony of the deeply detailed plans of January 6 and the inaction of those in the White House in response to the violence show just how close we came to a coup," said one pro-democracy organizer.

Brett Wilkins ·


Mark Meadows 'Did Seek That Pardon, Yes Ma'am,' Hutchinson Testifies

The former aide confirmed that attorney Rudy Giuliani also sought a presidential pardon related to the January 6 attack.

Jessica Corbett ·


UN Chief Warns of 'Ocean Emergency' as Leaders Confront Biodiversity Loss, Pollution

"We must turn the tide," said Secretary-General António Guterres. "A healthy and productive ocean is vital to our shared future."

Julia Conley ·


'I Don't F—ing Care That They Have Weapons': Trump Wanted Security to Let Armed Supporters March on Capitol

"They're not here to hurt me," Trump said on the day of the January 6 insurrection, testified a former aide to ex-White House Chief of Staff Mark Meadows.

Jake Johnson ·

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