Home / Business / Exxon will suspend the company’s match with employee pension plans in October: Sources

Exxon will suspend the company’s match with employee pension plans in October: Sources



FILE PHOTO: The ExxonMobil logos can be seen on the booth of Gastech, the world’s largest trade fair for the gas industry, in Chiba, Japan, on April 4, 201

7. REUTERS / Toru Hanai / File Photo

HOUSTON (Reuters) – Exxon Mobil Corp (XOM.N) informed employees that the employer match for pension plans should be suspended from the beginning of October, sources said, who had received a message from the company on Tuesday.

“Given the current business environment, the company is taking steps to reduce costs,” said a copy of Reuters’ message. “The company plans to suspend the company’s contribution to the US Exxon Mobile Savings Plan to all employees who are eligible under the savings plan effective October 1, 2020.”

Exxon spokesmen did not respond to comments.

On Friday, Exxon reported its first quarterly loss in 36 years due to the drop in demand during the novel coronavirus pandemic.

Exxon’s senior vice president, Neil Chapman, said Friday the company plans to cut both capital and operating costs to defend its dividend.

Under the plan, the company is equivalent to an employee contribution of 6% with a contribution of 7% of the employee’s remuneration. Exxon will suspend the contribution from early October.

“As business conditions continue to evolve, the company’s match contributions to the savings plan will be reassessed,” Exxon told employees on Tuesday.

At Exxon’s Baytown, Texas refinery and chemical plant, United Steelworkers (USW) union plans are calling for negotiations to change the savings plan, according to four sources familiar with the matter.

Exxon refineries and chemical factories in Beaumont, Texas, Baton Rouge, Louisiana and Billings, Montana have made no decision on how to proceed, sources said, who are familiar with the union’s plans.

Reporting by Erwin Seba; Edited by Jonathan Oatis and Lisa Shumaker

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