The Motley Fool Discussion Boards
Personal Finances / Living Below Your Means
|Subject: Re: WMT Workers Getting Spines for Xmas||Date: 11/17/2012 12:53 PM|
|Author: JonathanRoth||Number: 868793 of 880906|
Let's see, it is the management's responsibility to run the company and the union's responsibility to provide labor.
The role of each is clear and essentially the same:
- management: maximize shareholder value
- unions: maximize member value, however the union chooses to define it (loosing you job over a strike may be the best possible decision)
2 billion in unfunded pension liabilities doesn't help either.
Cash management is a management responsibility. Failure to fund pensions may be a good strategic management decision:
- it's a free loan
- it gives you negotiating leverage (fold or you'll never see your retirement)
So when a company fails, it is usually from bad management:
- failure to change with the market
- failure to manage costs
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