I suspect that the question of legacy costs depends to a large extent on the degree to which the state underwrites the costs of retirement and medical benefits.  If your competitors have only to pay labor costs for those currently working and you have to pay for everyone who ever retired and is still living, you will be at a significant disadvantage.  Same for medical care of retirees.  If your labor costs are 18% and your competition's are 10%, you are still at a disadvantage.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."