WINDALCO says discontinued benefits to pensioners not part of pension plan
The West Indies Alumina Company (WINDALCO) says the post employment benefits that were discontinued for more than 900 pensioners were never part of its pension plan.
The company says the pensioners were also informed from as early as August 2010, that the benefits which covered medical plans and life insurance would have been discontinued, when the winding up of the pension plan was completed.
Seeking to clarify media reports on the issue, WINDALCO says when it conducted a redundancy exercise in March 2010, it took the decision to discontinue the pension plan and commence the winding up process.
In a statement this afternoon, the company said it then took the decision to continue providing the post employment benefits to the pensioners while exploring several options on the issue.
WINDALCO says following the initial warning in August 2010, a second letter was sent to the pensioners informing them that the benefits would be terminated on January 21, 2012.
The company called the decision to end the benefits a tough one, but says it was unavoidable given its current cost position and the declining world aluminum market.