GM want slashes retirement packages

GM want slashes retirement packages
General Motors said Tuesday it would reduce traditional pension benefits for veteran salaried employees and shift newer staff to a defined contribution plan as part of a move to cut high labor costs.
GM's pension liability at the end of 2005 was $10.9 billion, according to its balance sheet.
GM shares lost more than 50 percent of their value in 2005.
Why GM made this decision?
GM's pension liability at the end of 2005 was $10.9 billion, that's really is a large number, after taht it will cut its yearend 2006 pension liability by about $1.6billion and resuit in a pretax charge of about $120 million.