While many other companies have taken the fast lane to dropping company 401(k) matches in these deteriorating economic conditions, Dollar Thrifty Automotive Group is driving in the other direction.
The Tulsa-based car-rental company said that it will reinstate its 401(k) match program in the new year. The company suspended it in 2008 when economic conditions continued to sour and the company’s expected performance worsened.
President and CEO Scott L. Thompson said in a statement that although the company is having plenty of troubles of its own in today’s economic climate, helping its employees and their families to focus on their future is a priority. Starting in January 2009, the company will match employee contributions dollar-for-dollar up to 2 percent. The company employs about 7,000 people in the United States.
“DTG’s board of directors and the management team feel strongly that reinstating the 401(k) match for employees is the right thing to do,” said Thompson. A call to Dollar Thrifty seeking more information on the decision to restore the match, and to learn the number of employees affected, was not immediately returned.
Meanwhile, another giant joined the line of companies freezing their matches for 401(k) plans as a way of cutting costs. Starting January 1, Motorola will temporarily suspend all company matching 401(k) contributions. Its decision was part of an array of cost-cutting measures that include a permanent freeze of its U.S. pension plans, a salary increase freeze for many employees and a 25 percent decrease in the company’s co-chief executives’ base salary for 2009.
