Seethe problem with the GM pension fund was...instead of fully funding these pensions, GM spent the money. THAT's why half the labor cost of a GM car was for pensions; they were following the government Social Security model for pension funding.
So to make up for it, GM agred to drop the liability for the pensions into the union's lap. GM's portion of the pension funding is coming from the "value" of stock that's not yet been issued...which is why the UAW now "owns" a part of GM. If GM ever recovers value to where it once was, the union sells the stock in its pension fund, and all the retirees can eat steak; but if GM stock tanks, the retirees who were promised steak by GM may be eating Alpo, and it'll be the UAW who gets stuck with the delivery of the bad news.
Smart negotiating by GM...and stupid on the part of the union, on behalf of their retirees, unless GM stock goes gangbusters soon. Not sure I can picture that, myself.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - The Ferguson System Principal An implement cutting through the soil at a certain depth say eight inches requires a certain force or draft to pull it. Obviously that draft will increase if the implement runs deeper than eight inches, and decrease if it runs shallower. Why not use that draft fact to control the depth of work automatically? The draft forces are
... [Read Article]
Latest Ad:
1964 I-H 140 tractor with cultivators and sidedresser. Starts and runs good. Asking 2650. CALL RON AT 502-319-1952
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
