Re: [Pen-l] Crybaby vultures

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

Wartime controls prevented the raises.  The promised bennies were a way of 
getting around the regulation of wages.


On Fri, May 01, 2009 at 11:03:11AM -0700, Jim Devine wrote:
> back when the UAW had significant power, the auto companies figured
> out how to deal with it: instead of giving raises now, promise
> payments in the future (pensions) or as health benefits (i.e.,
> insurance). It made these "deferred compensation" promises, just as it
> made promises to bond-holders. Then the companies -- like a lot of
> other US companies -- wanted to use bankruptcy to break these
> promises. But not the promises to the bond-holders, of course, because
> those promises are sacred. Money rules.
> -- 
> Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
> way and let people talk.) -- Karl, paraphrasing Dante.
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-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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