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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 902804

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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