Bearing the Burdens of Decisions Made by Others: The Corporate Reallocation of Employee Risk in the United States
Perspektiven der Corporate Governance, December 2006
25 Pages Posted: 3 Aug 2006
In conjunction with this collection of papers on corporate governance the author was asked to assess the role of employee representation in corporate decisions to abrogate or reduce pension and medical benefits in the United States. The paper details the rise of the "social contract" from the end of World War II to its transfiguration today - the shift from defined benefits to defined contribution pension plans and the shift of the increasing cost of medical benefits on to employees. It discusses the role of unions and stresses the near total absence of voice in non-unionized enterprises.
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