Important point here....HIS MONEY. Employer's money. He can do what ever the fuck he wants with it, including blowing it. And yes, the employees do have to pay the price for what an employer does with the company finances, but it is the company's to do whatever with.

Companies blow money all the time thru bad decisions, malfeasance, etc. That's business. You, as an employee, do NOT have the right to that job, or that pay and benefits.

I'll bet that when the company was doing well, that the unions were clamoring for raises and benefits, but in lean times, for whatever reason, arent willing to give back.