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Over the last 2wo decades, Corporate America has cried over pension costs.

Here are some OFFICIAL published GM numbers for salaried retiree pension system ending 2007(rounded numbers):

1. 200,000 pension recipients (average $1k/month check).
2. $34 Billion current pension fund value.


I calculate a one time payout of $173K for each recipiant and GM can cut the cord never to see,hear or touch a retiree agian.

So, WHAT is corporate Americas problem? Cash'em out and cut the cord. GREAT Econ Stimulus Plan Too.

-K

We spent about 100 years in an effort to give these basic benefits to the average worker while the Robber Barons cried about the fact that they now had to pay taxes.Now that times are tough, its the worker that is the problem.No one seems to complain about the excessive salaries of our CEO's.I can remember when the Chrysler/Mercedes Benz union was going through, they published the salaries of their CEO's.Chrysler-$7.5 Millon, Mercedes Benz-$450,000.00.Hmmm.Something just seems a little out of wack.Maybe our companies would do better if we had the free health care offered by Europe and Japan.

There's no such thing as "Free" in free healthcare.

Somebody is gonna pay.

Correct.Maybe $3.00 a gallon Gas tax would cure our health care, our pollution and our balance of payment problem with all those oil countries that love us so well.

One fact that I think that is overlooked in the case of Chrysler and the reason that they are in such bad shape
can be put into two words MERCEDES BENZ.

The MB Chrysler merger when it happend I thought would make a strong company, but MB mismanaged Chrysler right into the ground. Just my 2cent about Chrysler.


John F. Shireman

We have what many call "free health care" in Canada. Actually it is about 70% publically funded with about 30% private. There is no such thing as "free" as has been stated and so we do pay more income taxes and higher fuel taxes etc.(as do most western European countries that have similar systems) than in the US. I like it and have been well served by it but many citizens don't for ideological reasons or because they think the US system offers better care and less wait times etc.
One benefit the car makers have in building cars in Canada is that health care insurance is not a big factor in union negotiations to the extent it is in the US since the system is publically funded so it has benefitted our economy by creating jobs here to some degree.

QUestion about 'free health care' in i'national countries:

Does the governement keep track of every dime spent on an individuals health care and then attach that individuals estate upon the individuals death for reimbursement??????

Quote:
Keith,

As Dave quoted for Canada, where there is a split between public and private costs, Australia has a similar system. And although government agencies track healthcare costs there is NO recoupment from the estate of anyone should they die. The costs covered by the government are as Dave said, paid out of the higher taxes and charges they gain as revenue from us.

Quote:

No, at least not in Canada. Think of it as an insurance plan run by the government. In Ontario we used to pay out of our paychecks for the plan premium every month like Blue Cross etc. Since about 1966 it is payed in taxes with no need to make monthly premiums. Doctors are not employed by the government but work in private clinics and hospitals and bill patient fees to the gov't.

For some reason, there is only talk in the media about the pain the American makers are suffering. What is not said very much is that all of them, Toyota included, are hurting pretty bad.

The issue for American makers, to some degree, is the cost of labor, because it is higher for them.

The bigger issues, however, are that credit is tight and consumers are scared of committing to debt even if they could get a loan. It was a fun ride during our last bubble. You either adjusted your standards upward in the bubble and are suffering for it, or you managed to live well below your means and are suffering less.

The demand for cars was too high. Production capacities were increased. These capacities become fixed costs to a large extent. The variable costs are increased labor. It is easier, but not easy, to shake labor costs by lay-offs, but when it comes to shutting down plants, that process does not come as painless. The debt incurred to build/acquire/re-tool the plants is fixed and still must be repaid.

This is a new era - at least for a while. Demand was too high. Demand has come back down, and so, he we are....