Good News, Bad News Day For Kmart HQ Staffers

Sep 30, 2004

By George Anderson

First: the good news for the survivors at Kmart’s headquarters.

The company has decided to increase the amount it contributes to your 401K plan. Instead of matching 50 cents on the dollar up to six dollars, the company will soon match dollar-for-dollar up to three bucks and then match 50 cents on the dollar up to eight dollars. If you put aside eight dollars for your retirement, Kmart will kick-in an additional $5.50.

Second: the bad news for those working at the company’s current headquarters in Troy, Mich.

Kmart may soon be moving to the Atlanta-area or somewhere else outside of the state of Michigan and you may be out of a job.

According to a report in the Detroit News, Kmart is expected to decide where it will move its headquarters within a few weeks. “If Kmart leaves the state, it likely would ask about 20 percent of its 2,200-person headquarters work force to relocate and the other 80 percent could lose their jobs.”

Moderator’s Comment: What is your reaction to the latest Kmart news? What impact would Kmart moving out of Michigan have on the company?

If Kmart moves out of state, it will be because it expects to save a lot of money in doing so. Of course, the damage done to the morale of the company may
be too much to overcome. If he doesn’t think company morale matters, Edward Lampert should talk to a prospective neighbor in Atlanta, Coca-Cola’s chief, E. Neville Isdell.

George Anderson – Moderator

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