In a memo to employees sent last Monday, U-T San Diego CEO John Lynch said the company would suspend matching contributions to employees’ 401(k) accounts. In the note, Lynch cites “the challenges of a difficult economic recovery.” But, he says, “The Company also has experienced significant additional expense due to Obamacare.”
Reached by email, Lynch said U-T didn’t discuss its “challenges as a private company” but wrote, “Suffice it to say our health care expenses have gone up significantly. Hopefully, our financial goals and budgets will be achieved in 2014 and will ultimately match.”
David Nather reported in Politico last year that businesses employing more than 50 people will have to pay some per-employee fees. In a speech last summer, Lynch reportedly said it would cost the company a half-million dollars.
Don Bauder reports that some U-T employees fear the move presages layoffs.
Here’s the memo: Read more