Quote from: RevDisk on 2008-11-12, 23:22:31
Just like to point out that shedding pension obligations means privatizing gains and socializing loss. The Pension Benefit Guaranty Corporation would have to pick up the tab, which means ultimately the US taxpayers.
Still, needs to be done. Bankruptcy hearings would cost a LOT of people, as the company is restructured, shedding it's assets and obligations.
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The best way would be to crush the union and smack the management. Hard in both cases. Good luck with that, because it won't happen in either.
The various chapters of bankruptcy would help enable this though.
RevDisk:
What you state is true.
Those pensions that go this route usually only realize 1/3 to 2/3 of the original pension. I mention that for these reasons:
1. Yes, it is socializing losses, but not as many losses
2. Gives a good rogering to labor organizations that were rogering companies
3. Undermines the faith in the union to deliver when the rubber meets the road
4. Serves as an example of the peril of defined-benefit retirement accounts
Bankruptcy would allow the companies to make the tough decisions and use as a club to help beat costs/subs/unions/etc. back in line.
