Kodak to reduce retiree benefits starting in '09

[Not Me]

Eastman Kodak Co. said today it is making significant cuts to benefits for many retirees starting in 2009.

In a letter going out to those who retired on or after Oct, 1, 1991, Kodak said it will end dental coverage and company-paid life insurance in 2009. It also will begin a 10-year phase-out of medical coverage for dependents.

And during that 10-year period, the company plans to shift more of the cost of health insurance to retiree recipients by a percentage point a year.

“Because our retiree welfare benefits are paid out of the company’s operating income, it is in the best interest of all Kodak stakeholders, including our retirees, to sustain the financial strength of the company,” Chief Human Resources Officer Robert L. Berman said in the letter.

Mre at http://www.democratandchronicle.com/apps/pbcs.dll/article?AID=/20080801/BUSINESS/80801031

I worked for this company until 2003. They *had been* as paternalistic and generous with their employees and retirees as they could. They found themselves with not only a changing technology base-- chemical -> consumer electronics, but also found that they no longer had a 75% monopoly share of their markets once they entered the digital imaging world. They are but one of many very good companies in that sector. It's kind of sad.

[annabanana]

1. And exactly WHERE are these pensioners, with a lifetime of

accumulated medical issues, supposed to get health insurance?

The healthcare issue is my #1 issue, after the state of the Constitution.

[Not Me]

2. What's worse is that many of these pensioners have held onto Kodak stock

over the last ten years as it spiraled from $84 in August '98 to $14.50 today.

And I truly believe that the next round of universal health care proposals are going to meet with a much warmer reception this time from corporate America than they did in the early 90's.

[Clear Blue Sky]

3. These companies are screwed.

Cut benefits or go out of business.

[lpbk2713]

4. The Board of Directors will get a bonus of several Million $$ each for that move.

That's how it always works out. Fat cat bastards.

[MorningGlow]

5. George Eastman is spinning in his grave

He was noted for being very, VERY pro-worker, for the "common man". In the past several decades, the Kodak PTB have trashed his tradition.

Plus, they blew it--they didn't see digital coming down on them like a freight train, and they kept insisting that film would always be the preferred medium for photography. Kind of ironic, considering how forward-thinking and -seeing George Eastman had been.

This is sad--Kodak kept my city afloat for a century--if you didn't work there (although most people did), you worked for a satellite business where Kodak was the primary client. Now it's all collapsed...literally. In the past year Kodak has been imploding and tearing down buildings at its many-acre Kodak Park. The suburb it's located in (Greece) is becoming a blasted plain. And Kodak itself is a giant quite close to death.

To paraphrase George's suicide note, "Their work here is done. Why wait?"