The Homa Files

So, how much is Detroit’s labor cost disadvantage, really?  According to Reuter’s:

Reuter’s notes that trust for retiree healthcare called a Voluntary Employee Beneficiary Association, or VEBA, is to be established in 2010 — to shift retired workers liabilities to a union-aligned trust. Reuters reports that the so-called legacy disadvantgage will go away then — leaving a mere $9 per hour difference (16%).  Reuter’s doesn’t say how the trust will be funded.  Hmmm.

Source:
http://www.reuters.com/article/privateEquity/idUSN1246948520081212?pageNumber=2&virtualBrandChannel=10360

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This entry was posted on December 26, 2008 at 8:00 am and is filed under Autos - Travel. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.