> Those employees from 30 years ago accepted lower wages in exchange for future pension payments, and the company received something of value (employee labor) on partial credit
That may be true, but that doesn't mean that another competitor without those legacy costs can come in and better compete, unless the benefit from being able to pay less for the workers from long ago is big enough to create a sustainable competitive advantage. I would also note that the term is likely much longer than many debt agreements (most debt is 5-10 years) and is not subject to the proper credit risk considerations as normal corporate debt.
> There's nothing untoward about them expecting payment, and if the company has mismanaged funds, they're not the ones to bear that risk
Employees are the ones that bear the risk as a company can always renegotiate or go out of business. I'm not sure where pension liabilities fall in bankruptcy, but I certainly wouldn't want to bet my retirement savings on my current employer's health 30 years from now.
That may be true, but that doesn't mean that another competitor without those legacy costs can come in and better compete, unless the benefit from being able to pay less for the workers from long ago is big enough to create a sustainable competitive advantage. I would also note that the term is likely much longer than many debt agreements (most debt is 5-10 years) and is not subject to the proper credit risk considerations as normal corporate debt.
> There's nothing untoward about them expecting payment, and if the company has mismanaged funds, they're not the ones to bear that risk
Employees are the ones that bear the risk as a company can always renegotiate or go out of business. I'm not sure where pension liabilities fall in bankruptcy, but I certainly wouldn't want to bet my retirement savings on my current employer's health 30 years from now.