Re: Big strike at GM
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Now due to incompetence of the company management of allocation of its management responsibilities to incompetents, the funds (rightly the employees) cannot provide the benefits , not only envisaged, but promised.
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You have this wrong. The employees own a contractual promise from the company to get a pension benefit. The plan sponsor owns the fund, which an entity created specifically to aid them in providing the benefit. While poorly conceived laws may agree with you, it is fundamentally wrong to say the employees own the pension fund, because they don't own the risk of the pension fund underperforming. Management must add money to the fund to address shortfalls, so they bear the risk of poor returns in the fund, so they must own the fund. The employees bear the risk of the pension promise not being fulfilled (from the money currently in the fund or through additional contributions to the fund). You MUST assign ownership and risk bearing consistently or the system will be a disaster.
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