20 February 2009

What David Said

David Sirota notes that the push by the 'Phants to cut retiree healthcare and pensions may create a profound change in labor negotiations.

This makes sense. Why negotiate for pension benefits or health insurance for retirees if you cannot trust the company to be there when the bill comes due.

Just go for the money up front:
Now, I think workers should always drive a hard bargain, but I also think that we don't want to have an economy that effectively tells workers that they should never trust the future commitments of employers and that they therefore should be willing to destroy a company in order to get cash/benefits up front.

And that's what slashing autoworkers' health care and retiree benefits would do: It would likely make unions far more rigid in their future negotiations with all employers. That, of course, would be rational behavior by unions - having learned that employers' future commitments cannot be trusted, they would simply never be flexible in trading wages for future benefits.
Somehow, the right wing thinks that contracts are sacred, so no cramdowns on mortgages, unless, of course they are with their employees, in which case, they are mere scribblings in the sand.....on a beach....before a hurricane hits.

0 comments :

Post a Comment