1.  Define the following terms related to the article:

• right to work laws
• tax incentives
• pension
• benefits

2.  What type of tires will Michelin make in the new factories the company is opening in South Carolina?

3.  Which state is the current leader in tire production?

4.  Ohio was once the rubber capital of the world.  What factors have caused tire companies to move out of Ohio?

5.  How do salaries and benefits differ between Michelin's non-union employees vs. employees in other states which are unionized?

6.  What makes South Carolina attractive to tire manufacturers, according to Michelin's president?

7.  Read the following comments about union contracts, then answer any 2 of the questions that follow.  Explain your answers:

In Wisconsin and many other places, governments and businesses are no longer able to fulfill agreements they made with employees years ago. The greatest illustration is GM [General Motors] and the United Auto Workers.  United Auto Workers members were, by [union] contract, allowed to retire long before age 65. And at retirement they were allowed to keep, as a benefit, lifetime pension and primarily health care benefits.

The idea that you can continue to pay people either a full salary or 80% (plus health benefits) for 30 years after they retire, in addition to having to pay that for current employees is sinking every state government, every city government, every town government and many companies.  It's what's sinking many foreign governments.  The money just isn't there for it.  So states are revising these plans, as has happened in Wisconsin.  And the unions are so ticked off, that's the reason for the attempt to recall Governor Scott Walker. 

In Greece, in Spain, wherever you go: The fact of the matter is that lifetime health care benefits and pensions, when you no longer work for the company, cannot be sustained.

The money isn't there.

And what happens is, if they're forced to make the payments, they'll go bankrupt and out of business.  So accommodations have to be made.

1. Do you think Michelin and other companies were wise to move to right to work states? 
2. Do you think non-unionized companies are bad to work for?
3. Do you think employees are unreasonable for expecting large pensions and health care after they retire?  (Does it make a difference if the employees are factory workers or police/firemen, or other government employees?)
4. Opponents of  employee contracts that include full or almost full salaries and health insurance for life after employees retire say they are not sustainable.  Do you agree?  Explain your answer.