Just found out yesterday that from now on my check *and everyone else's in the company* will be receiving a 5% decrease. On top of that, our employer who paid 80% of our healthcare premium is now paying less and making the employees pay the difference.

Here is their memo they gave to us word for word:
_______________________________________________

As a result of numerous external events beyond our control, the company has experienced a shortfall in certain key financial objectives. In addition, the recent second tier wage structure negotiated between GM and UAW has further threatened our competitive viability at the Wilmington assembly plant, increasing the potential for GM to in source our current services. Other significant events include the recent production cutbacks at General Motors' Oshawa truck plant caused by the prolonged UAW strike at American Axle, and the recent announcements by General Motors to eliminate a full production shift at both Wilmington and Oshawa assembly plants. These events in combination with the poor US economy, fears of a global recession and escalating costs to finance our growth, have created a "perfect storm" scenario that demands our urgent response to stabilize our business.

The adjustments needed to weather this storm have been thoroughly evaluated, carefully considered and painfully decided. This stabilization plan will be deployed immediately and impact our organization from the very top executive levels through the ranks. It includes reductions in workforce, reductions in compensation, curtailed spending, increased employee contribution to health care premiums (see details below), and other significant reductions to our controllable costs. No matter how you are impacted, you are relied upon to continue support the cost savings initiatives of the company and to dedicate your work time to maintaining the high level of professionalism and quality workmanship that has become the trademark of our organization and the essence of our competitive advantage.

Compensation adjustments for impacted employees will be effective on the paycheck dated June 6, 2008 for hourly employees, and on the paycheck dated May 23, 2008 for salaried employees. Health care Insurance Premium withholding adjustments will be effective on the paycheck dated June 20, 2008. However, the current May 23, 2008 payroll check has prematurely increased the withholding for health care premiums in error, so the June 6 and June 20 paychecks will reflect the current withholding rates to correct that error. Then the July 4, 2008 and subsequent paychecks will reflect the adjusted withholding rate increase as summarized below.

We are confident that this stabilization plan will adequately respond to the current adverse conditions and enable us to secure the financing to fund the continued growth of our business. As stability is restored, we will reevaluate the adjustments made within this plan and the potential changes to them.

Thank you for your past performance and your vital support of our plan during this difficult period.


HEALTH CARE INSURANCE PREMIUMS

As many of you know, health care costs in the United States continue to rise at rates above the average consumer price index. In fact last year, average health care insurance premiums increased by 13%. Our organization has worked diligently to minimize these cost increases and at the same time retain the high level of valuable health care coverage that we have all come to expect from our benefit plans.

In consideration of these continuing cost increases and our organization's need to remain cost competitive, we researched industry practices to benchmark against our current practices. What we discovered is that employers cover, on average 67% of the family premium and 74% of the individual premium for medical insurance.

It has been our company practice to cover 80% of the premium for all forms of elective coverage (family, individual, individual & spouse, or individual & children). Based upon the current levels of cost and competitive pressures facing our organization, we can no longer support 80% of the premium burden for the health insurance coverage of our employees.

Therefore, effective with your June 20, 2008 paycheck, all employees participating in our group health insurance plans, will have their payroll withholding for employee contribution to the group health insurance premiums, raised from the current 20%, up to 30%. What this means in dollars to most of you who participate in our United HealthCare Choice Plus Plan is summarized below:

Individual current: $47.50 new withholding:$68.80
individual & Spouse current:$96.00 new withholding:$144.00
individual& Children current:$80.00 new withholding:$120.65
family current:$140.00 new withholding:$209.55

Thank You for your understanding of this mandatory change, and please be assured we remain committed to achieving the best possible group health care value for our employees.
__________________________________________________ ______________
*END OF MEMO*

So on top of having 5% of our pay taken, our health premiums raised by our employer, NOT The Insurance Company, we also have been denied our annual raises and our perfect attendance incentive. Also in my case i have been denied my 6 month raise that i was told upon hire that i would receive.

I am mainly wondering if the 5% of our pay taken is legal as well as the annual raises not being given.

Thank you for anyone who read the whole post, it truly took me a while to type.

Unless there would have been something to the contrary in an enforceable employment contract or CBA, what your employer is doing is legal. Raises do not have to be given by employers or perfect attendance incentives. You were notified ahead of time (which is normally required) about the wage decrease & increase of ins. premium payments both of which are allowed.