The Markets February 17, 2010
Connecticut Resort Suspends 401(k) Match
Foxwoods Resort Casino is suspending its 401(k) match for hourly
employees to help offset a 2.5% salary hike for nonunion workers,
according to a media report.
Reported by Fred Schneyer
The Day reported that executives at the Mashantucket, Connecticut, facility informed employees of the match suspension in a memo last week. Michael Speller, president of Mashantucket Pequot Gaming Enterprises, said in the memo that the company felt the tradeoff between granting the compensation hike and suspending the match was worthwhile.
“In order to partially offset some of the cost of implementing the wage increases, it will be necessary to suspend the 401(k) match for all hourly Team Members, beginning February 28, 2010,” Speller said in the memo, according to The Day. “While it is not easy to make these choices we believe that the implementation of a wage increase is an immediate benefit to our Team Members and at the current time is more meaningful.”
The company said it would put back the benefit for hourly workers “when the market improves within 12 months.”
“In order to partially offset some of the cost of implementing the wage increases, it will be necessary to suspend the 401(k) match for all hourly Team Members, beginning February 28, 2010,” Speller said in the memo, according to The Day. “While it is not easy to make these choices we believe that the implementation of a wage increase is an immediate benefit to our Team Members and at the current time is more meaningful.”
The company said it would put back the benefit for hourly workers “when the market improves within 12 months.”