|
|
Lucent Technologies
As pension-fund surpluses waned and health-care costs rose, Lucent Technologies turned to its salaried retirees to restore a financial balance.
An initial round of cuts in health benefits hit top retired managers this year and is expected to be followed by another round in January for a broader group of former managers.
The company also prevailed in negotiations with its labor unions this month, securing tentative agreements to shift part of the health-care burden to rank-and-file retirees.
The company pays pensions and health benefits for 125,000 retirees.
"Up until 13 years ago, we were getting periodic increases in our pensions, which you could call cost of living," said Larry Buynak, 74, of Gahanna, a retired manager. "None of us has gotten anything since."
Lucent said changes are needed because it has four retirees for every active employee.
Although the company is not legally required to offer health benefits, Lucent retirees and the Pension Rights Center in Washington argue that retirees deserve them.
Retirees — former salaried workers and union members — have protested cuts and pressured the company, which last month reported its first profitable year since 2000. Meanwhile, Chief Executive Patricia Russo has been paid millions in salary and bonuses.
"If the retirees are being treated as they are now, how can the leaders of the corporation shower themselves with large bonuses?" Buynak asked. "Among my group of retirees, there is a bitterness. We’ve never had a say in what happens."
Big Bear
The parent of the former Big Bear grocery chain planned to cancel its pension plan when it closed its Columbus-area stores in January.
The future of the plan, covering more than 10,000 nonunion workers and retirees, was uncertain. At the time, parent Penn Traffic reported the pension was underfunded by $150 million.
But nearly a year later, the Big Bear plan remains in effect, but only because Penn Traffic has not received Pension Benefit Guaranty Corp. approval to close out the pension.
"The PBGC cannot determine whether the company’s application for a distress termination can be granted until we have up-to-date, complete and final information," agency spokesman Jeffrey Speicher said.
Penn Traffic spokesman Marc Jampole said the company has delayed the pension plan’s formal demise because it is developing a financial plan to emerge from bankruptcy. That plan, subject to court review Jan. 24, proposes termination of the pension.
While government takeover of the pension plan remains in limbo, retirees are being paid from the Penn Traffic plan. If the agency ends up taking over the plan by January, workers could face benefit reductions because of caps on benefit amounts.
Techneglas
A maker of glass for television sets, Techneglas shut down in August, putting 1,100 out of work at three Ohio and Pennsylvania plants. At its E. Jenkins Avenue plant, 382 people lost jobs.
In the aftermath, the union is negotiating health and severance issues. All retirees — in excess of 500 — continue to receive pension checks from the company plan.
But union officials said Techneglas wants the Pension Benefit Guaranty Corp. to take it over. "To my understanding, they will be the new administrator," said Rick Bolton, vice president of the Glass, Molders, Potters, Plastics and Allied Workers in Columbus.
Of big concern to the union are workers who don’t qualify for full retirement benefits despite lengthy years of service. These workers could be looking at even less benefits if the government takes over the plan.
"They don’t know where to turn," Bolton said, predicting many could struggle to find jobs to fill the gap.
Techneglas is in bankruptcy, but it is a subsidiary of Nippon Electric Glass Co. of Japan, which the union said has financial resources that could be tapped.
Buckeye Steel Castings
Buckeye Steel Castings closed and went bankrupt in 2002 after a century of molding steel for railroad cars.
More than 700 people lost jobs, many having spent decades at the South Side foundry. The closing left workers without health insurance.
Out of the ruins of Buckeye Steel rose Columbus Steel Castings in 2003. Columbus Steel bought Buckeye’s assets — but not its debts and obligations.
Some Buckeye workers returned to Columbus Steel, but most had to move to other jobs or retire early.
Donald M. Wirth Sr., former president of the United Steelworkers of America union at Buckeye, said pensions were preserved for those who were retired or were eligible for retirement. The pension fund is managed by a bank.
Wirth, however, is among those who were not eligible. He’s 53 and had 23 years of service. He can apply for retirement when he is 55, but his benefits would be less than what they would be if he waits until he is 62.
"I don’t even know at this point how much of my pension I will get," he said.
tmatthews@dispatch.com