Date registered: Jul 2007
Vehicle: 1973 450 SL
Location: Castle Rock, CO
Mentioned: 0 Post(s)
Quoted: 0 Post(s)
While it may void current union contracts, I believe that pensions are federally protected from such actions, much for this very reason. And since the folks that want to blame the unions seem to believe that the 28% of the 10% of the cost of cars is what is causing this problem, this won't solve that.
What bankruptcy will do is destroy a bunch of small suppliers that rely on a steady cash flow to keep the doors open as the fallout propagates throughout the industry.
If the companies bankrupt, their pension accounts will be secured by the rules of teh Pension Protection Act of 2006 and the PBGC. Pension Benefit Guaranty Corporation (PBGC)
UAW Pension Updates
Retirees should and will avoid PBGC at all costs. United pilots got only 35-40 per cent of their defined-benefit payouts.
Charter member of the Vast Rightwing Conspiracy and proud of it.
God Bless the America we're trying to create.
--Hillary Rodham Clinton