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Your figuires on the ‘legacy costs’ are a bit off big G.
There is no healthcare for life. It stops when they hit medicare/medicaid age.
80% wages is off also. It’s more like 50% or less, depending on how many years beyond 30 you put in. And when you turn 62yrs, you lose nearly half of that.
Toyota doesn’t see legacy costs yet just because they haven’t been going here long enough. It will be there some day tho. Just remember, these contracts are sighned off on both sides and nobody held a gun to anybody’s head to do so.
I guess we all can spin this whichever way we please. I just feel the facts need to be put forth.
I report, you decide.
Herb,
I respecfuly disagree. Many of the old union contracts have provisions related to health care and large portions of there last 1 to 5 year rolling average pay. As an example. My grandfather was a butcher for a large grocery store. Now 80 years old he still carrys his heath bene’s from the day he ret (At 0 cost.) and recieves 80% of his pay. (I’ve enven seen examples where the annual income increases for inflation.) Many of these contracts were written before medsups and the edvantage plans now available. I can give you many more examples if you like. I see them almost every day due to how I make a living and where I now live. (Fort Myers has a large number of ret. individuals from Detroit.) The same contracts exist in many industry’s and the companies are paying out the nose for them. (IE.. The big three.) This is why the companies negotiated to send control of the pensions and medical benefits to the UAW. (Ford and Chrystler)
http://www.nytimes.com/2007/11/15/business/15auto.html
The VEBA trust controls manyof these Health and retirement Bene’s. This is also why those two MAY have a chance to make it going forward. If the pensions fail it’s no longer the companies fault. They will fund the benefits and the union will do what it does with the money.
As for Toyota having legacy costs in the future…… It won’t happen. Because the comany is non union the employess are provided with a 401k (With Company Match) and health bene’s. At retierment they head into the sunset living off of what they chose to save over the years. Because they have no legacy cost Toyota has the ability to pay it’s employees well and still make a buck. (These number are readily available on line.) Here’s just one example. Type “Toyota VS Big Three labor rates” into a google search
http://www.manufacturing.net/News-GM-Vs-Toyota-Wages-And-Benefits.aspx
This post is just one reason our country is great. Everyone has an opinion and we all the ability to communitate them.
Have a great weekend everyone.
Chris