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Benefits April 2, 2009
Buffalo Manufacturer Joins 401(k) Match Suspension List
April 2, 2009 (PLANSPONSOR.com) - A Buffalo, New
York-area building products and steel processing firm has
suspended its 401(k) match because of a slumping business
climate driven by slowdowns in the housing and auto
sectors.
Reported by Fred Schneyer
A Buffalo News report said Gibraltar Industries informed employees that it will discontinue the matching contributions indefinitely on April 17.
According to the News , the company posted the biggest quarterly loss in its 16 years as a public company during the fourth quarter and is facing further losses during the quarter that ended Tuesday.
“While this has not been an easy decision for the company to make, it is a necessary business decision in light of the current economic environment,” the company said in a memo to employees according to the newspaper.
The newspaper said the company has also made significant cuts to its headquarters staff, suspended its $0.20 per share annual dividend to save $6 million, and cut its capital spending plans.
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