July 10, 2007

THE REALISTIC SOLUTION:

Shifting pension benefits to UAW protects workers (Detroit News, 7/08/07)

Health care costs are part of what's crippling the domestic auto industry, but a solution appears to be near and it doesn't rely on taxpayer bailouts or government intervention. Instead it rightly places the responsibility -- but not the costs -- for managing retiree benefits with the union that demands absolute protection of them. [...]

Neither the Big Three nor its suppliers can afford to pay the extravagant benefits that union members have enjoyed for decades. But what's been promised shouldn't be taken away. The domestic automakers also need to insist that the new contract have more realistic health care and retirement provisions -- moving to higher employee contributions and health savings accounts as well as defined contribution programs instead of defined benefit plans -- to ensure that they're not faced with another ballooning problem down the road./blockquote>
What's good for General Motors is good for America, eh?

Posted by Orrin Judd at July 10, 2007 10:40 PM
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