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How can a service company make ten year commitments without any control over its labor costs?
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And this is something I think you're going to hear a lot of today on Capitol Hill, that they didn't control their high labor costs earlier, and then they got caught in this recession.
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Sure, it finally has its labor costs under control following 2007's historic agreement with the United Auto Workers.
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Players will also have to manage teams of quirky personalities, placating superstar designers while keeping labor costs under control and developing new talent.
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Because the Pension Benefit Guaranty Corporation (PBGC), a federal agency tasked with insuring private pension plans, has long encouraged large companies to delay needed changes to their retirement plans in order to bring labor costs under control.
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Its so far successful facedown with the once-powerful mechanics' union may have broad echoes across a beleaguered airline industry as the nation's fourth-largest carrier takes a step toward getting its labor costs under control--a necessity if it's to avoid a bankruptcy filing this fall.
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And the only direction they will have to go, the only true expense they can control, will be to reduce their labor costs.
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No expense is harder to control than labor, typically accounting for 25% to 35% of costs in such mine construction and most of the overruns.
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With little demand for Made in China goods, and rising labor costs, China is finding itself in a bond, partially out of its control.
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