Wartime controls prevented the raises. The promised bennies were a way of getting around the regulation of wages.
On Fri, May 01, 2009 at 11:03:11AM -0700, Jim Devine wrote: > back when the UAW had significant power, the auto companies figured > out how to deal with it: instead of giving raises now, promise > payments in the future (pensions) or as health benefits (i.e., > insurance). It made these "deferred compensation" promises, just as it > made promises to bond-holders. Then the companies -- like a lot of > other US companies -- wanted to use bankruptcy to break these > promises. But not the promises to the bond-holders, of course, because > those promises are sacred. Money rules. > -- > Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own > way and let people talk.) -- Karl, paraphrasing Dante. > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu michaelperelman.wordpress.com _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
