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Posted by Chris Case @ San Diego on Tuesday, January 29, 2008 at 16:18:07 :
In Reply to: Overlooked in that story is.... posted by MoparNorm on Tuesday, January 29, 2008 at 01:00:24 :
From 'defined benefits' to 'defined contribution'.
They will no longer promise health care, instead they will contribute X percentage of pay to a retirement account. Spend it how you want after retirement. Actually , the fed ought to require this system. So that corporates raiders can't stel the pension funds, and leave us taxpayers liable for the reduced benefits.
For one thing this will get retirement costs apportioned to the year the employee earns them. How many millions does GM have to pay, out of this years profits, to employees that have not worked there for 25 years?
The Formerly Big Three, and the UAW, realize they have to do something to compete with the other 'Made in the U.S.A.' brands. Like Toyota, Subaru, Mercedes, Nissan,...
Something beside (whatever chapter) bankruptcy. The one where the company 'restructures', then the same employees make the same product in the same plant, for the same company, but the old labor contracts are null and void.