TEPCO considers cutting pensions to pay compensation

So TEPCO is considering screwing its own workers for the company's own mistakes (direct or indirect cause). Bet they're ecstatic about that.

"According to Japanese law, TEPCO needs the approval of two-thirds of its retirees and current employees who are paying pension premiums in order to slash premiums."

Why would any employee who worked for that company for 25 plus years agree to this? After all, pensions are a contractual thing people pay into over time; it is ridiculous for the management to try and steal money form the employees who saved it in their accounts. Of course, people at the top could give up their THEIR money; BETTER YET, why not ask the towns in Fukushima to use the millions of dollars they received from TEPCO over the years for allowing the plant to exist? They should have plenty, except for the fact they wasted most of it.

How much do you want to bet that it'll be all the hard working, honest employees of the company that get screwed with this while the execs decide to opt for a mere 10% pay cut for three months (if even that) instead of forfeiting their OWN pensions?

These guys manage to find new lows all the time.

soldaveSep. 21, 2011 - 12:35PM JST

So TEPCO is considering screwing its own workers for the company's own mistakes (direct or indirect cause). Bet they're ecstatic about that.

The thing is, a company is just a piece of paper. It doesn't make mistakes, its employees do. I'm not saying that this is a good idea (or not) but the money has to come from somewhere or the company will be bankrupt. In which case the retirees will see their pensions cut anyway.

That's right Smith, new lows all the time. For it was just the other day that they tried to reinstate executive bonuses, but were rebuffed by the govt. Let's not forget the censorship of info in those manuals...tepco..I mean, they must have been overcharging people for decades to have amassed 200 plus buildings. I'm no socialist, but i'm starting to wonder if utilities should be either non-profit or nationalised. Those billions in profits would easily lower bills and provide the govt with revenue to pay Japan's debt. Now they want to sell Japan's post office and tobacco (like they did with the trains under Nakasone), they won't have money for social programmes - ie YOUR retirement and medical.

"The thing is, a company is just a piece of paper. It doesn't make mistakes, its employees do. I'm not saying that this is a good idea (or not) but the money has to come from somewhere or the company will be bankrupt. In which case the retirees will see their pensions cut anyway." Exactly. A company is a bunch of people working together to sell some sort of service or product. It is the management and employees that made the mistakes after all.

This does not make any sense. The company TEPCO does not have control over the monies for the pensions. The employees pay 50% as does the company, in this case TEPCO. That is the long term payments. The short term payments are for health insurance. Cost less but both pay 50%.

A different holding company controls the Pension funds. If that were not the case, then any company that files for bankruptcy would screw all of their employees. That does not happen.

Look up on "How do Pensions" work.

One thing TEPCO can do is from this day on, pay less out, but also collect less from each employee. If these employees vote to have the holding company tap into their pensions, then the people of this country have really shocked me with stupidity.

For example...if any of you work for Japanese schools or private schools, there is a company called Shigaku Kyosai. They are a mutual Aid association and offer all sorts of things including extra nenkin, extra health insurance, cheap hotel accommodations nando. Maybe some one writing here can tell more about that.

How comes that TEPCO executives are still at large?

And tepco stoops to an even lower level, when will this scumbag of a compny be closed and its senior execs be tried for the crimes they have commited, this company is disgusting.

I thought TePCO exec and their families had moved to Singapore.

If it means it will save (or help) TEPCO from going bankrupt and not being able to pay any money out, then they will have to do it. JAL did the same thing so it seems companies do have control of pension amounts paid for workers who have already retired. Bottom line is, don't rely on government pensions or company pensions. Make sure you have your own nest egg somewhere as well.....if possible!

That's illegal ... oh wait... this is tepco we are dealing with

The pension contributions you have been paying in will have been going into a pension fund, and managed by Pension Fund Trustees. It is unlikely that this money has been fraudulently spent by your directors, and this money cannot be used legally to prop up the company by paying off debts with it. It is separately protected.

Still read up on this. You will lose something due to fees, and if they are paying half your health etc., car insurance and a number of other things, you lose there, but your pension is yours.

It will never pass the vote of the employees.

Will I ever see the headlines TEPCO executives take a voluntary salary, bonus and pension cut of 50 percent?

Would really NOT like to see a mass stranding of TEPCO management on a beach....who in their right minds would push them back into the water...it's radioactive and that might hurt their sensitive skin. And too many notes to read around the office.

Nothing but a clumsy PR attempt by TEPCO to illicit a bit of sympathy from the Japanese populace. Nothing more, nothing less.

I would think that sympathy for TEPCO is in short supply in any form in Japan.

Cut the salary's of the directors for 24 months... I'm yet to see any real action like this.

JapanGal

I thought so too but how did it work with JAL? I can't recall but maybe they asked their pension enrollees to accept a cut in their pensions? I remember it certainly did happen but I'm not sure how. If a company does go bankrupt, how safe are pensions even if they are managed by trustees? I doubt they really are 100% safe unfortunately.

what a crooked organization. Make the low level workers pay for the mistakes of the executive while the executive continue to receive lavish wages! Sounds so much like wall st. vs. main st. in the states

The gap between assets and liabilities for TEPCO may be of considerable size, and they cannot pay all the liabilities immediately. TEPCO might be considering, among other options related to a restructuring, filing for bankruptcy protection or some sort of specialized government-backed bankruptcy protection. That way, TEPCO could slash its debt and seek concessions from the pensions of employees, including cuts in its retiree-health obligation.

TEPCO seriously. Cut it all. The President of TEPCO should sell all those BMWs and Benzs, company cars. Remove the snack machine from the lunchroom as well. Everything must go!!!!

Yes, Mirai, it' is crooked indeed but a necessary sacrifice for that is the Japanese way. All must take responsibility and bow....Gomenasai....plus "ishario" money. Their families must pay too. College money, no more school trips, no more Shabu Shabu. Tarako spaghetti forever.

Why so extreme? Dude, they destroyed part of a nation!!! They amputated a whole region of Japan. When it comes to nuclear safety they like literally lowered the bar. What they did was a step shy of a nuclear impact. This nation was traumatized in a way that all the compensation TEPCO could ever offer wouldn't heal Japan.

I still shocked to see that the top officials in TEPCO haven't committed suicide yet. I truly hope the press follows these guys around December so you can get a picture of them going in for Bonenkai with big fat bonuses.

Have to agree with the outrage here. At a loss for words.

The more I know about Tepco the more sick I get!! Bastties!!