-- Connecting the dots between our economy, government and business --
One of Chicago’s big corporate employers is moving to cut most employees’ salaries by 20 percent. Aon, based in London but employing about 5,000 in the Chicago area, announced the temporary pay cut today as a maneuver to “preserve operational flexibility.” CEO Greg Case and other top executives announced they would be taking 50 percent cuts in salary at the same time.
Summary and audio linked here.
Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Full interview and summary linked here.
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Navistar cut too depending on your employee level, similar amount. But the agreement is that we will be reimbursed with 6% interest after things go back to normal. 6% ain’t bad.
Corporate America doing what it can to stay in business and keep people employed, meanwhile Pritzker embraces raises for public workers.
Aon employee here. Public sector workers are our feudal lords and we are their serfs.
This won’t be good for the ‘Unfair Tax’.