August 01, 2004

There HAS To Be A Better Way

The Times is reporting that the airline industry may be in need of a bailout on the order of the S&L bailout of the 80s. Simply put, it means that the airlines have promised to pay their workers pensions as part of their legally binding contracts. The law says that once a worker has earned the pension that has been promised the company is obligated to pay that worker's pension. Unfortunately, it seems as though most of the major airlines have less money in the bank than they owe in pensions. Shouldn't they be required to keep enough money in said bank to pay said pensions you might ask? Well they're supposed to, but Congress has been loosening the requirements for years now.

I had a long rant about how this is exactly why people who think there shouldn't be any government regulation are out of this world crazy/dumb, but I think reading the article and thinking "What the hell is a retired person who suddenly doesn't have any more money coming to them supposed to do?" will lead you to that conclusion on your own.

1 comment:

Anne said...

Prior consideration is no consideration! Sorry, I know that's not directly applicable, but this brought back memories of contracts and pensions that aren't stipulated in original contracts, and I couldn't help myself. I'll shut up now. Sorry.