Exxon to suspend company match to employee retirement plans in October: sources

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FILE PHOTO: ExxonMobil logos can be seen at its booth at Gastech, the world’s largest exhibition for the gas industry, in Chiba, Japan April 4, 2017. REUTERS / Toru Hanai / File Photo

HOUSTON (Reuters) – Exxon Mobil Corp (XOM.N) told employees it would start suspending the employer’s matchmaking to retirement savings plans from early October, sources said who received a message from the company on Tuesday.

“Given the current business environment, the company is taking steps to cut costs,” according to a copy of the message seen by Reuters. “The company intends to suspend the company’s contribution to the US Exxon Mobil savings plan for all employees covered by the savings plan, effective October 1, 2020.”

Exxon spokespersons did not respond to messages seeking comment.

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

Exxon Senior Vice President Neil Chapman said on Friday the company plans to cut both capital and operating expenses to defend its dividend, adding that investors “are coming to consider this dividend. as a source of stability of their income ”.

As part of the plan, the company matches a contribution of 6% from an employee with a contribution equal to 7% of the employee’s salary. Exxon will suspend the contribution from the beginning of October.

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

At Exxon’s refinery and chemicals plant in Baytown, Texas, plans by local United Steelworkers (USW) are filing a request to negotiate the change in the savings plan, four sources familiar with the matter said.

At Exxon’s refineries and chemical plants in Beaumont, Texas, Baton Rouge, Louisiana and Billings, MT, no decision has been made on how to proceed, sources with knowledge of the plans’ plans have said. union.

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

Our standards:Thomson Reuters Trust Principles.

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