Colt to Exit Bankruptcy by Cutting Workers’ Retirement, Borrowing Money from Connecticut Taxpayers

By Nick Leghorn

After losing the contract to produce the majority of the U.S. military’s firearms to FN Manufacturing Colt was left out in the cold, trying to rely on their smaller law enforcement contracts and what little commercial sales they have to keep themselves afloat. That didn’t work and they filed for Chapter 11 bankruptcy protection in June. Six months later it looks like they are ready to emerge from court protection and they intend to do that by cutting some retirees benefits and asking for a huge government handout.

From The Courant:

Critical to the reorganization was the United Auto Workers’ agreement to cut retiree medical benefits for 372 former Colt workers and spouses. The contract had the company paying nearly all the retirees’ expenses that Medicare didn’t cover; the company’s exposure will now be limited to $1,500 per person.

The union succeeded in negotiating a more generous offer, as the company had proposed changing its retiree medical benefits to $1,350 per person.

The majority of retirees spend less than that, but 55 of the retirees have much higher health care costs.

The union also said it will cooperate with management in asking the state to lend the company $10 million, which …Read the Rest

Source:: Truth About Guns