Any contract with future delivery is subject to risk. The union contracts for lifetime benefits are a contract foir future delivery. They are an especially worrisome type of contract too -- they guarenteed a level of benefit, against an unknowable future cost, IIRC. The were a loan against the companies future vitality. The burden of payment was left to the future, to the employees and owners in the future.
Well, the future wasn't rosy scenario. Expenses went up, revenues went down. You can't squeeze water from a rock. The weight of the pension and benefit agreements really acted against the companies. Lenders where reluctant to lend against already encumbered earnings and investors did not want to be saddled with the burden.
What the workers grabbed for, fought for, ends up being an empty bag -- becuase they grabbed for the wrong bag. A bag that promised NO risk for them. No one can make such promises about the future, and anyone who demands them is foolish. Had the workers, had the union bosses, signed on to share the future risk -- things might have been different.
This is precisely why the unions have lost their purpose. They can no longer promise wealth in collectively bargaining, so what is the purpose?
We have OSHA, so they aren't even needed for that.
Keep your eyes on the state worker and teacher pensions, as well as the Big Three auto makers. This shouldn't be a suprise to anybody.