The shock was huge. In the beginning, JAL even didn’t want to hold meetings to explain it.
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Takahiro Fukushima, a retired employee of Japan Airlines. He gets a pension of 2.7 million yen a year from JAL, where he worked for 35 years, but two months ago, the unprofitable airline sent him and other retirees a letter asking for permission to cut their pensions by more than 50%. (Bloomberg)
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neverknow2
Asking their permission?
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Speed
2.7 million a year. That's not very much money (apx. $27,000 US dollars) a year. To cut that in half would put him very close to poverty level income. There are better ways to cut costs. The reducing/canceling of unprofitable flights being the best way.
Cutting pensions is a great demotivating factor for loyalty to those within your organization. Very short-sighted solution.
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griff
it means that they will anyway, but asking is tatemae for the illusion that they give a damn about retired drones
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Kronos
What kind of pension I wonder? Defined benefit most probably. It sounds as if the airline still had to contribute after these people retired and they are looking to cut costs.
I would consider cutting pensions as THE last resort. It is a very bad business strategy which would destroy the current employee's confidence and loyalty in the company aswell.
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