The company is saddled with debt and has been unable to fund all of its workers' pensions. So on Tuesday, Dean Foods filed for Chapter 11 bankruptcy protection to keep the business operating, reorganize its debt and help fund the pensions while it looks to sell the company.
Sorry guys, but before you all go and throw Walmart under the bus, please take a good look at this statement above.
I hate to bring some of you back to reality, but a company's spread sheet can't pay an unlimited number of workers
not to work. That is what a pension is. You pay people NOT to work.
Pensions are a great benefit, if
you are the beneficiary. There is a tipping point that where profitability gets outstripped by the number of people drawing a pension. This is what crippled the US steel industry and the US auto industry. It is the reason that the steel industry could make a deal with the Swedes or the Japs on a sale because they wouldn't take the pension liabilities.
My father-in- was a EE for Martian Marietta for 30 years. he retired with a good pension and benefits at age 62. He will be 93 next month, meaning that Martin has paid him NOT TO WORK longer than it paid him to work.
Everyone can easily see how that is a problem.
