KODAK RE-INSTATES 40I(k)MATCH & PAY RAISES IN 2010

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KODAK RE-INSTATES 40I(k)MATCH & PAY RAISES IN 2010

 user 2010-03-01 at 11:18:42 am Views: 61
  • #23712

    http://www.democratandchronicle.com/article/20091217/BUSINESS/912170328/1001/business/Kodak-to-reinstate-401%28k%29-match–pay-raises-in-2010
    KODAK REINSTATES 40I(k)MATCH & PAY RAISES IN 2010
    Eastman Kodak Co. will restart its 401(k) match next year, and its workers again will be eligible for pay raises.The Rochester-based photo and imaging company was among many of the area’s major employers that responded to business woes brought on by the recession by freezing pay or suspending some benefits. And many of those same companies still are gauging economic conditions before they rescind those cuts.Paychex Inc. is waiting until after its current fiscal quarter, which ends in February, to make decisions about pay and benefits, since that quarter is the most crucial one for client growth, said Chief Financial Officer John Morphy. The company has halted any merit raises and its 401(k) match.

    Xerox Corp. spokesman Bill McKee said that with an early 2010 economic recovery “far from certain,” the company is holding off on reinstating compensation until there are more tangible signs of a sustainable recovery. Xerox halted raises, suspended 401(k) matches and instituted a hiring freeze early this year.

    University of Rochester currently is under a salary freeze. The area’s largest employer said it does not expect to have its budget plans in place for its next fiscal year until spring.Kodak suspended its 401(k) match for U.S. workers in the cash balance retirement program, froze pay and axed performance-based or wage dividend bonuses.

    But in letters to employees this week, Kodak indicated it planned to restart the annual salary review and end some other cost-reduction steps in 2010.”My optimism stems from the very real and meaningful progress we made this year,” CEO Antonio M. Perez said in a letter to employees sent out this week. “The truth is despite the recession, we enjoyed a year of positive developments in the execution of our strategy.”

    Those developments, according to Perez, include a backlog of demand for its commercial printing presses, improved performances by its image sensor and electrophotographic printing operations, and ongoing cash generation by its traditional business lines.The company, which employs more than 8,000 locally, will not know about any potential bonuses until all the financial results from 2009 are in, spokesman David Lanzillo said.