Chrysler Cuts Pension of Former CEO
EmailLee Iacocca is the man credited with saving Chrysler from bankruptcy in the 1980's. Famous for the phrase, "If you can find a better car, buy it" the former chairman and CEO is faced with the realities of the failing economy. Iacocca participates in the company's retirement plan, and in the midst of Chrysler's plan for bankruptcy, his pension is going to be cut.
Current CEO Robert Nardelli says that if Chrysler gets bankruptcy court approval, pensions aren't the only thing to go. The company will stop their program which provides furnished company cars for former executives and directors. Chrysler is asking for the the cars to be returned.
Chrysler says it regrets the actions "in light of the many contributions these individuals have made to Chrysler over the years." Chances are, Iacocca and others regret them too.
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Wrong for Chrysler Corporation to cut any pensions or benefits that have already been assigned and designated to Chrysler employees. (Chrysler employees gave their best service to company with additional incentive from those rewards–with motivation of understanding and purpose that those rewards for premium service at the company would be there in the future and not be taken away from them. For Chrysler or any other company to attain optimal achievement of products and services from future employees, it would be a bad precedent to set to show that benefits could be cut retroactively. For future employees to give of their best they must know that without exception all of the company benefits promised to them will in fact be given to them. There is no less value today to the quality products and services Chrysler employees provided at Chrysler yesterday.) If Chrysler wants to save money, adjustments to employee benefits must not be retroactive and must only pertain to future Chrysler employee pension plans and benefits.
Posted by: Jerry Rosen | May 30, 2009, 3:50 pm 3:50 pm
I think Chrysler that the history end.
Posted by: nick | May 31, 2009, 8:28 am 8:28 am
I’m very sorry to hear that anyone who faithfully served their company is now losing the benefits promised to them, but unfortunately it happens every day. I wish Lee Iacocca was running things for Chrysler and GM – perhaps this mess could have been avoided.
Posted by: Donna McMullen | June 1, 2009, 2:04 pm 2:04 pm
Your all right, they should let Lee Iaccoco in on the action it would of been done right.
Posted by: Fred Yacovetta | June 1, 2009, 6:45 pm 6:45 pm