Legacy Costs at US Auto Makers is Bullshit

[louis c]

I was at a union event in Boston last night (Nov. 20). I spoke with some UAW reps. When I posed the legacy question, the answer they gave me made me feel foolish as a union leader. Foolish because I didn't think of it first, without having to ask.

Why aren't the pensions funded? The major auto companies left the God Damned pensions unfunded. A worker that worked at one of the majors for 30 years would have contributed, or have had the employer contribute, the money for his pension. It should not be an expense now.

The companies are trying to pay pensions out of future earnings. When they negotiated the pension deal decades ago, it was the company's obligation to fund it, week to week as the employee worked.

The worker is not to blame for this "legacy cost". He or she has earned it, either as a bargained benefit or as redemption for invested income.

It turns out that the same right wing bull-shit that has put the burden of management failures on the backs of union employees is just that, bull-shit. Don't fall for it.

[napoleon_in_rags]

1. From Enron, to the bank failures to this: I am beginning to see a pattern.

List potential profits as current hard assets (count chickens before hatched, and count unhatched chicken's eggs and so on, ad infinitum) and bank on them. The run around like chicken with head cut off asking for handouts when it all comes crashing down.

[louis c]

2. I'm getting the same picture, and I don't like it

Fuck the workers, then blame them and ask the taxpayers to bail out the big shots.

[RTS]

3. legacy costs

I am 47 years old, and can remember hearing as a child this problem was looming. It has been brushed under the rug,holding up the house of cards. All interested parties are guilty- Execs, the Union, and yes, the workers who bought into an unsustainable plan.

In order for the industry to survive, it must be remodeled- and that includes looking at existing legacy cost's and labor agreements.

[Hannah Bell]

4. Did you read the OP?