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View Diary: Open thread for night owls: Coal companies rip off miners' pensions (111 comments)

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  •  The original contract for health and pension (1+ / 0-)
    Recommended by:
    high uintas

    benefits was signed by the employees and the company they worked for.  When the employees were "spun off" into a different company, the liabilities (employee benefits) were transferred as well, but not the contract (the money in the retirement and health funds).  So in declaring bankruptcy, the new company blames the newly-acquired liabilities for its lack of solvency.  When the bankruptcy is granted, away go the liabilities.

    "In this world of sin and sorrow there is always something to be thankful for; as for me, I rejoice that I am not a Republican." - H. L. Mencken

    by SueDe on Mon Mar 18, 2013 at 11:27:18 PM PDT

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    •  And the federal pension guarantee fund takes over (2+ / 0-)
      Recommended by:
      tardis10, high uintas

      the liabilities to the retired workers so you  and I get to pay them.

      The elevation of appearance over substance, of celebrity over character, of short term gains over lasting achievement displays a poverty of ambition. It distracts you from what's truly important. - Barack Obama

      by helfenburg on Tue Mar 19, 2013 at 03:18:27 AM PDT

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      •  I know my late bro in law got nothing (0+ / 0-)

        his pension went with the interstate trucking company that went thataway. It was devastating to him.

        "The scientific nature of the ordinary man is to go on out and do the best you can." John Prine

        by high uintas on Tue Mar 19, 2013 at 09:49:48 AM PDT

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    •  How is this allowed exactly (1+ / 0-)
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      high uintas

      The mechanics are interesting, I am more interested in what the fundamental argument is that allows this. Bankruptcy judges aren't simply going to allow the company to slough off its obligations that way without some reasonable argument.

      (-5.50,-6.67): Left Libertarian
      Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

      by Sparhawk on Tue Mar 19, 2013 at 05:43:54 AM PDT

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      •  That's the beauty of the "system" (1+ / 0-)
        Recommended by:
        high uintas

        The new company has no obligations to the employees - not continued employment, not health care, not retirement.  Those contractual obligations belonged to the previous company which no longer has the employees.

        "In this world of sin and sorrow there is always something to be thankful for; as for me, I rejoice that I am not a Republican." - H. L. Mencken

        by SueDe on Tue Mar 19, 2013 at 09:13:34 AM PDT

        [ Parent ]

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