Autoworkers Union Is Wrong About Pensions: Allison Schrager

Shawn Fain, the president of the United Auto Workers union, wants to bring back the old-fashioned pension. That would be a mistake — both for the auto industry and its workers. There are good reasons that defined-benefit plans are increasingly rare, and trying to bring them back makes about as much sense as trying to revive the US economy of the 1960s.

It’s a commonly held view that defined-benefit plans contributed to the decline of US automakers. Freezing the pensions for new hires in the 2000s was a big part of the reform that enabled them to stay competitive ...