Re: Republicans think destroying UAW is worth a depression

David Loewe, Jr. <dloewe@xxxxxxxxxxxxxx> wrote:
On Mon, 15 Dec 2008 22:14:22 +0000 (UTC), rkshullat@xxxxxxxxxxxxxxxxx
wrote:

whitroth <whitroth@xxxxxxx> wrote:
Mike Schilling wrote:
David Friedman wrote:
"Mike Schilling" <mscottschilling@xxxxxxxxxxx> wrote:
Keith F. Lynch wrote:
Lee Ratner <LBRatner@xxxxxxxxx> wrote:

The GOP has gone completely bonkers. They have lost the
election.
Voters have rejected the extreme far right and free market
"principles" that they advocated for a generation at least but
the GOPers response to this is to move even farther to the right.

It's right wing to ask auto workers to accept a reduction in wages
from $70 per hour

No auto worker makes $70 an hour.

I don't know if that's true or not. But I gather the $70 an hour
figure represents, or at least claims to represent, costs of the
worker to the employer, including both salary and health plan and
the like.

It includes the cost of retirees' pensions into the per-hour cost of
current workers. As I pointed out in my response to Keith, that
makes no sense.

I agree. I was under the impression that the companies had been paying into
accounts for those pensions, and that should have accrued interest, as
well. Most of it should *not* be coming out of current wages.

I haven't seen details, but if it's like most companies whose pension
programs are underfunded it's because (a) they correctly calculated what
was needed and failed to contribute it, (b) they contributed the
calculated amount but underestimated cost inflation, (c) they offered
early retirement to some of their workers and now have a higher
commitment than originally planned, or (d) some combination of all of
these. I suppose it's also possible that their pension funds were
invested and the investments have done poorly, but I have no idea if
this is true (or legal).

One wonders what they do with the money set aside if they do not invest
it...

Turns out they do invest it, and without any obvious rules as to the
quality of the investments. So that's another source of underfunding.

Robert
--
Robert K. Shull Email: rkshull at rosettacon dot com
.

Relevant Pages

  • Re: Republicans think destroying UAW is worth a depression
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  • Re: Republicans think destroying UAW is worth a depression
    ... the GOPers response to this is to move even farther to the right. ... It's right wing to ask auto workers to accept a reduction in wages ... It includes the cost of retirees' pensions into the per-hour cost of ... accounts for those pensions, and that should have accrued interest, as ...
    (rec.arts.sf.fandom)
  • Re: Republicans think destroying UAW is worth a depression
    ... the GOPers response to this is to move even farther to the right. ... It's right wing to ask auto workers to accept a reduction in wages ... It includes the cost of retirees' pensions into the per-hour cost of ... accounts for those pensions, and that should have accrued interest, as ...
    (rec.arts.sf.fandom)
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