Re: France keeps up pressure on Hewlett-Packard jobs

From: ian lincoln (jessops_at_sux.com)
Date: 09/25/05 

Date: Sun, 25 Sep 2005 20:24:58 GMT

"JF Mezei" <jfmezei.spamnot@teksavvy.com> wrote in message
news:4336F620.2B28F4F1@teksavvy.com...
> ian lincoln wrote:
>> That means there have been huge numbers of employees paying into a
>> pension
>> fund. In order to be eligible you have to pay in for one the company
>> doesn't hand them out for free. That money isn't to be invested in the
>> company itself the money is merely managed by the company it isn't to be
>> used as a reserve bank account.
>
>
> In principle, correct.
>
> But in reality, there are many funds where retirees are getting part of
> their revenus from contributions of current workers. When companies are
> downsizing and offering early retirement, not only are there now fewer
> people contributing to the fund, but also an unplanned for sudden surge
> in people gettin early retirement.

I've never understood how they can claim to save money. At least in Britain
you can only make someone redundant or early retire when their job no longer
exists. Not cos you want to get rid of them. To do otherwise means 'buying
them off' which can be expensive. A more than usually generous redundancy
settlement equal to a year or more wages or a higher than typical retirement
settlement. This means for that year of layoffs you haven't actually saved
on your wage bill. So how at the end of a year you can claim savings when
you have paid out just as much wages but not even got a years work out of
everyone how do you claim a saving? You do the following year but not the
first. Some creative accounting going on if you ask me.

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