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Benefits December 23, 2008
South Carolina Company Joins Those Suspending Match
December 23, 2008 (PLANSPONSOR.com) - Kemet Corp., a
South Carolina company that makes capacitors for electronics
products, has joined the ranks of those companies making
compensation and benefits changes to offset the effects of
the down economy.
Reported by Rebecca Moore
According to GreenvilleOnline.com, the firm announced Monday that it will cut pay for salaried employees by 10% at the beginning of the year and eliminate company contributions to its 401(k) retirement savings program to adjust for a bigger-than-expected sales decline. The moves should only affect about 400 workers at Kemet’s headquarters and research center in Simpsonville, and William M. Lowe Jr., the company’s chief financial officer, said the company intends to restore the pay and retirement contributions when the economy improves.
In addition, Kemet announced it will lay off about 1,500 workers at plants in China, Europe, and Mexico – 14% of its global work force – and reduce insurance benefits for about 1,200 retirees in the U.S., the news report said.
While relatively few companies have cut or suspended their 401(k) matches so far, more are considering the option (See (k)Plans: Rough Cuts ).