Union people like pensions over 401K’s, because it’s supposed to be a guaranteed payout. If bankruptcy guts the pensions, look for workers to want to bail on pensions, and have self-directed 401K plans — which will be devastating to the unions which manage pension funds and use them for political purposes.
Michigan unions are scrambling now because they’re starting to feel the slow strangulation of the right to work law.
The teachers union in Saginaw is demanding an immediate $10 Million from the school district because their union is dying and the union owned insurer is going to be left holding the bag.
Just Northish of Detwaa is Oakland County run by Republican L Brooks Patterson. Guess what, they have a AAA bond rating. Why? He got the Union types to go along with MSA's ( @ the time mid 90's ) and a 401a. The difference between this County and Detroit is staggering. If the Union guys went for it back then, why didn't Detwaa adopt Patterson's model.....
That is the million dollar question...
Just North of Detwaa is Oakland Country run by a lovable right wing lunatic :-) L Brooks Patterson..
In the Early 90's he convinced his Union Workers to go along with a 401a ( yes there is such a beast cousin to the 401k ) and adopt a Medical Savings Plan as well.
Because of it, they have a AAA Muni Bond Rating.
They pissed and moaned about it at the time, but I bet the guy on the road crew slinging tar for pot hole patches in Oakland County right now with his 401a, would not trade his job or his 401a for a job in Detwaa and their Pension for all the Tea in China...