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Posted by David on Wednesday, December 17, 2008 at 13:31:35 :
In Reply to: Re: I agree, Question: Is the UAW run efficiently? posted by Doinco on Wednesday, December 17, 2008 at 12:52:08 :
Legacy cost" is a description used to palletize the health and pension benefits to retires. The $1,600-per-vehicle handicap in so-called legacy costs, is mostly retiree health and pension benefits. If you want to take their earned benefits away from retirees, because you don't want to pay for them in a taxpayer bailout, you'll end up paying for them with some other form of taxpayer hand out.
How do the Big 3 pay for these Legacy costs? Out of their operating funds or revenue, similar to what the government does today with social security. Bad plan. The true problem is that the companies have never set aside their obligation, or paid up.
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