Friday, April 13, 2007

Bloomberg: "GM Weighs Plans to Cut Union Health Costs...."

Rarely will I blog on single-company issues, but GM is in a way representative of what is left of America's manufacturing industry, and by extension, our economy. If they can do this, perhaps there is hope for the company.

If not, if the unions will drag the company and their own pensions and their own healthcare down to a sad end, then I'd say recalculate the pension obligations and the state of their funding, using conservative investment performance assumptions, and the resulting unfunded liability with all the other baggage the company bears, ought to be a sufficient basis to place the company in a Chapter 11 reorganization. Dump the whole pension plan on the PBGC, like the airlines did, and renegotiate with the unions. If they won't get real, move the company to Tennessee and the rest of the South. Or put the plants in Mexico. Let Michigan finish rusting away, if they won't get real. Do like Honda and the rest of the Japanese. Or sell the dadgum company to Daimler Benz! Exclusive

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