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Originally Posted by Sierra
I understood the figure to be both pay and benefits. But what I dont like is that( maybe I misunderstood) is that the the companies pay the retirement benefits as ooposed to the union. Can anyone shed light on this?
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This is exactly what changed going into 2010. The Automakers are ponying up seed money then the Union will take over paying the retirement benefits starting in 2010. Chrysler for example will be putting 10billion into this account.
I couldn't find what the other makers were putting in for seed money but GM has got to be taking a huge hit because they have 1.7 retirees per active employee...ouch.