AP reports that Visteon plans to cut health care and life insurance benefits for white-collar employees.
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Visteon spokeswoman Robin Pannecouk told AP that salaried employees who retire on or after June 1, 2007, will no longer receive company-subsidised health insurance. Visteon also will discontinue its life insurance program for those who retire after June 1, 2007.
Visteon will give employees a credit to help cover their premiums if they turn 45 on or before July 1, 2005. They also will be eligible for group-rate discounts on life insurance, AP said.
“The changes to our benefits have been something the company has been talking about for a while,” Pannecouk reportedly said. “The changes we shared with our employees are part of an overall effort to transform Visteon into a competitive and profitable business.”
Pannecouk said it’s unclear how many employees will be affected because some may choose to retire before the deadline and some employees who used to work for Visteon’s former parent, Ford Motor Co., are still covered by Ford retiree benefits.
Pannecouk declined to estimate how much money the cuts would save, the AP report added.
