Sorry, I got on a bit of a rant there. It was late when I wrote it, but for some reason, my computer didn't post it until I refreshed it around noon today. Anyways...

I agree with you about the concept of a pension via an annuity. And you're right that it should have been paid when the work was performed. The railroad pension system is a good example of a proper defined benefit program. Its not without its kinks and issues, but it works and is properly capitalized.

Yes, those companies should have properly funded said annuities as they were accrued. Unfortunately for many retirees, they didn't. So any bankruptcy will pass the responsibility to the PBGC. Which will ultimately mean a reduction in benefits to retirees.

Let's say I have $50,000 budgeted for you this year.
Option A) $50,000 - $12,000 for healthcare = $38,000. $38,000 * .65 (35% fed, state, city, ss, med) = $24,700 net, or $475/wk.
Option B) $50,000 - $12,000 for healthcare = $38,000. $38,000 * .8 (20% pre-tax earnings toward retirement) = $30,400. $30,400 * .65 (35% taxes) = $19,760 net, $380/wk.
Unfortunately, most people I know take the short-sighted "Option A" route because it gives them an additional $4,940 now. Also, "Option B" which are traditional defined benefit plans or similar company-managed programs rarely exist any longer. They're much more likely to be employee-managed programs like 401k, and still require the employee to actively make that choice to defer wages. And to your point, I'd be stiffing you $7,600 if you chose "Option B" and I just didn't pay it. Which is wrong, unethical, immoral, illegal, and yes, stealing from you.

If any company with retirees/pensioners goes bankrupt and cannot even pay currently working employees, how do you propose to pay the retirees? Any company, not just UAW and other union companies? Where's the money come from? Rich executives? Hardly. Oh right, the Pension Benefit Guaranty Corporation (PBGC). An interesting piece of legislation known as the Employee Retirement Income Security Act of 1974, signed into law by Gerald Ford on Labor Day, created the PBGC. While not directly financed by the general tax fund, its an indirect tax on business, which obviously passes that along to their customers. If you are management and have budgeted for a 3%-6% increase in your premium to keep your pension fund fully funded, then get hit with an increase of 10%-12%, where do you get that extra 4%-9% from? Healthcare costs alone are up 120% over the past 9y, compared to inflation, up 44%, and wages, up 29%; source. And while its not right, illegal, and immoral to stiff your retirees fund, according to this law anyways, its what executives have done. Where's the cryouts for government enforcement of that law?

As a capitalistic business owner, you work, I pay you; you don't work, I don't pay you. Seems like a basic theme throughout the history of the world. Retirees don't work, I don't see why I should still pay you. I'm sure you did a great job and provided excellent value for me to keep you around for 25+ years, but that gives me no reason to pay you for another 25+ years. In fact, I could probably hire 2 new people to replace you after you retire. If you're smart enough to properly plan and save for your own retirement, great, wonderful, I'll even through you a party. Otherwise, keep working.

When did retirement become a right and a given in life? Especially of the publicly-funded type. Only in the last 50y in western cultures. Certainly in the past there was family and community help for the elderly, but many were also wise enough to save for their own needs and also live within their means.

If you think the UAW pensioners, and their fund, are screwed, just wait until the bulk of the boomers here in the US start retiring and drawing Social Security and Medicare. Don't worry though, the greediest generation will just print more money or use the Fed's Chinese Express (CHEX?) charge card.

So let's see, boomers and their greedy offspring have:

• Made their children compete with world labor rates (instead of far closer national or regional rates)
• Commoditize as much as possible to compete only on price.
• Exported millions of 'middle class' jobs, manufacturing, knowledge, service, etc.
• Raised the middle class workforce entry barrier to include a 4y degree, which in-debts twenty-somethings with a mortgage-sized payment without actually owning a house or property
• Driven up costs of housing by insane urban planning (or lack thereof)
• To paraphrase a quote generally attributed to de Tocqueville, they've hired legislators to bribe themselves with their own money. See all entitlement programs and the most recent redistribution, er...Bailout, nope, umm...Stimulus Packages (I think that's the PC term this week).
• Are prepared to tax Gen X/Y into oblivion to continue their excessive lifestyles. I'm interested in theories as to how my taxes WON'T go up, at any level of government.
• Created huge indirect taxes through legislation, think of the various mandatory insurances.
• Created a legal environment which is threatening to anyone trying to run a business, or develop new products, or treat patients.

As to the thread topic, unless those companies listed in the theory start buying up track rights, or property for new track, they're pretty worthless to the rails. Yes they have great manufacturing capacity and talent, but the railroads already have enough supply for current demand. And by companies who've taken proper care of their union employees and pension obligations. Not without difficulty or arguments, but most railroad pensions are really good and properly funded. If the demand for passenger railcars jumps 50%, there will either be a) a business already around ready to meet the demand or scale accordingly, or b) an investor willing to risk money and invest time trying to meet that demand.

I suppose the biggest thing the railroads have going for them is limited competition. Railroads are a heavy, physical thing. Its not like railcars or locomotives are exactly disposable, like most of the junk from China.

Personally, I'd like to see Amtrak properly funded and, much more importantly, given priority on the tracks. It never ceases to amaze me that they even keep a schedule anymore. Especially if you are traveling through Chicago; just plan to be late.