Skip to main content

Sign up for our newsletter.

Quality journalism. Progressive values. Direct to your inbox.

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."

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.

 


Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
We need your help.

Support progressive journalism.

Common Dreams is not your average news site. We don't survive on clicks or advertising dollars. We rely entirely on your support. And without it, our independent progressive journalism simply wouldn’t exist. Every gift of every amount matters.

Join the fight and support our common dreams today.

Ocasio-Cortez Says 'Elephant in the Room' Is Senate Democrats Blocking Their Own Party's Agenda

"The argument that we need to make here," the New York Democrat said of bipartisanship's dead end, "is that it's worth going it alone if we can do more for working people in this country."

Jon Queally, staff writer ·


On Climate and Covid-19 Emergencies, G7 Judged a 'Colossal Failure' for All the World to See

"Never in the history of the G7 has there been a bigger gap between their actions and the needs of the world. In the face of these challenges the G7 have chosen to cook the books on vaccines and continue to cook the planet."

Jon Queally, staff writer ·


NYC Mayoral Candidate Eric Adams Rebuked for 'Dangerous' 400-Students-to-1-Teacher Theory

"Defunding schools to the point that we have a 400:1 student-to-teacher ratio so we can bankroll another huge expansion in an already-multibillion dollar police budget," said Rep. Ocasio-Cortez, "is how you build a school-to-prison pipeline."

Jon Queally, staff writer ·


Lack of Patent Waiver Would Add Over $70 Billion to Cost of Vaccinating World: Oxfam

Most of that money, said a spokesperson for the group, "will go directly into the pockets" of Big Pharma shareholders.

Jon Queally, staff writer ·


Darnella Frazier Receives Pulitzer Special Citation 'for Courageously Recording the Murder of George Floyd'

"Without Darnella, Derek Chauvin never would have been tried and George Floyd would have been blamed by the state for his own death."

Brett Wilkins, staff writer ·