[lbo-talk] Big Three have it out for UAW

tfast tfast at yorku.ca
Thu Jun 14 17:34:14 PDT 2007



> > My question is why the law does not force corporations to
> > bank at least 75% of their pension and health care obligations
> > for retired workers?
>
> Wouldn't the law have to start with the Social Security Administration
> liabilities?
>
Presumably the US state is more durable than an auto company and thereby can be cut more slack. Corporations othoh come and go and whatever pension and health care contracts they have entered into with workers should be front and centre in the presentation of the companies overall debt structure and should not be classed as an asset. Moreover, the law should be changed so that workers are the first creditors in line in the case of bankruptcy. Now that would be some leverage.



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