1. The company costs associated with health care fees and other benefits for its current employees and retired pensioners are termed as legacy costs. These costs generally increase the company’s spending, without adding anything to revenue. Pension plans and retiree health benefits are a prime example of a legacy cost. 2. As a management’s chief negotiator the reason I would like to give to the unions is that if the legacy cost increases or remain present then ultimately the cost of the company increases because the person to whom it is being given are the retired ones and the company is not getting any kind of service benefits leading to an ultimate decrease in the investment opportunity in business expansion.