Sunday, April 19, 2009

What's not being reported about Chrysler and the union in Ontario

DTK: McGuinty: Chrysler's Problems are the Union's Fault

... As I explained, the real problem was that Chrysler had never put aside any money for the pensions it had promised its employees. Instead, it now includes the cost of those pensions as part of the current employees' labour cost.

The effect is to make the workers seem expensive relative to those at neighbouring plants when, in reality, they make about the same amount of money.

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