Browse archives: 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | 1997 | 1996 | 1995

Published on 02/16/1998 All articles from this issue

Sears retirees go to battle over a cut in benefits

printer friendly version

By Joanne Griffith Domingue / Town Crier Staff Writer

If you've lived in the Los Altos area 20 years or more and if you have had Kenmore appliances, chances are Elwin Trusdale repaired your washer or dryer.

Trusdale, a service technician for 35 years with Sears, Roebuck and Co., "serviced a lot of appliances in Los Altos," said Paul Gandenberger, also a retired Sears worker.

Trusdale, Gandenberger and many other Sears retirees on Feb. 13 picketed the Sears store on the corner of San Antonio Road and El Camino Real in Mountain View. A local Sears official did not return a Town Crier phone call.

According to Gandenberger, who is organizing the picketing throughout the Bay Area, 84,000 Sears employees, who are now retired, paid into a life insurance program, expecting upon retirement that the policy had a cash value.

Last fall Sears informed retirees, by video, that in fact the policy was term insurance with a benefit of $5,000.

"We feel this is deceit and bad faith from a company which claims to be such a caring employer," wrote Sears employee Kathleen Davis to congressman Tom Campbell.

Davis sold kitchens from the Mountain View store and now works one day per week in the Cupertino store.

Retirees have filed a class action lawsuit claiming breach of contract regarding employee benefits.

According to company spokeswoman Jan Drummond, since 1993 Sears has been looking for ways to cut costs.

"Sears has consistently communicated its right to change or modify all benefits at any time at the discretion of the company," she said.

Sears earnings plunged in 1994 and continued dropping in 1995, before beginning a gradual rise again. Analysts, however, have cut earnings estimates for 1998.

The Illinois-based company is the second-largest retailer in the world. In an effort to focus on its core business, Sears sold Coldwell Banker, a real estate company, in December 1993. In 1995 Sears spun off Allstate Corporation, an insurance company.

Sears has 335,000 employees.

"I love sears," said Gandenberger, who retired in 1991 after 34 years with Sears. "They took care of me. They sent my kids to college, helped me buy a house. Sears always set the standard in the industry. It's like they don't care any more."