Posts Tagged ‘pensions’
Friday, December 16th, 2016
Coal miners, their communities and Faith groups are calling on President-presumed-Elect Donald Trump to honor his campaign promise to help coal workers. In an “Open Letter to President-Elect Donald Trump from coal miners,” hundreds of coal miners from Appalachia to Western coal lands asked for help for coal communities across the country.
They want Trump to take action to make sure coal CEOs and companies keep promises to restore the landscape and local environments by “reclaiming” the old mines, which would mean jobs in coal communities. They also asked Trump to protect the pension and health benefits they were promised. The companies and CEOs made millions from the mines and should not be allowed leave behind a devastated environment and ruined communities.
The letter was organized by Interfaith Worker Justice (IWJ), a network of Faith groups and worker centers working “to mobilize people of faith and work advocates in support of economic justice and worker rights at the local, state and national levels.” It asks Trump to stop coal CEOs and companies from abandoning their responsibility to clean up old mines.
The letters asks Trump to, “Ensure federal and state governments use every legal option to prevent coal companies from shirking their commitment to reclaim and repair the public lands mined for private profit.”
Please visit the website Help Coal Workers to read stories from coal workers, read the letter and sign a petition asking Trump to honor his promises.
For example, one of those stories:
“I worked in the mines for 25 years until I had an accident and could not work anymore,” said Charles E. Boyd of McCalla, Alabama. “I am on disability due to my work injury. I also have black lung. My pension and health benefits was promised to coal miners by our government. Please keep the promise.”
The Open Letter to President-Elect Donald Trump from coal miners:
Dear Mr. President-Elect Trump,
Dear Congressman Zinke, nominee for Secretary of the Department of the Interior,
Anybody who works on American coal mines knows that the industry is rapidly changing. Mines are closing, coal companies are declaring bankruptcy, and many of us are losing our jobs and our livelihoods. For some of us, these are the only jobs that we’ve ever known – once assured of a lifelong and stable career with good pay and a community in which to raise a family. No more.
We all have strong opinions about why our industry is suffering: which politicians or whose agenda is to blame. Regardless of politics, the bottom line is that we need to take care of our brothers and sisters who are facing uncertain times.
That means ensuring that coal companies follow through on their commitments to coal miners across the country. As you take action to revitalize the coal industry, we urge you and Congressman Zinke to do everything possible to hold true to your promise on the campaign trail that you are beholden to “no special interest. My only interest is you, the American people.”
Here’s how the Trump Administration can be a champion for coal mining communities in crisis:
Ensure federal and state governments use every legal option to prevent coal companies from shirking their commitment to reclaim and repair the public lands mined for private profit.
Through bankruptcy proceedings, we have learned that several companies are working to drastically reduce their financial and legal responsibility to reclaim mined land.
Any new or expanded coal leasing should be in concert with the strongest possible assurances that coal companies will honor their obligations to communities to create jobs by reclaiming and rehabilitating mined land.
Work with Congress to increase revenue and funding for communities as well as programs that support local economies.
There are a number of pieces of legislation on the table in Congress that would invest in coal communities, fund reclamation and economic revitalization projects, and protect promised benefits to coal miners and their families.
We urge you to work with Congress to pass these laws if they do not move forward before your inauguration
We, the undersigned coal miners and concerned individuals from across the country, demand action that will bring relief to coal communities.
This post originally appeared on ourfuture.org on December 15, 2016. Reprinted with Permission.
Dave Johnson has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.
Monday, October 31st, 2016
It’s National Save for Retirement Week, a time when financial services industry experts offer Americans conventional advice for preparing for their golden years. However, saving for retirement isn’t as simple as these people would have you believe.
A growing number of Americans are struggling just to get by—let alone save for retirement. I should know; I’m one of them. There’s no such thing as a retirement for me.
As an adjunct professor, my wages are so low that I haven’t been saving for retirement. I’ll be working until they carry me out of my job. That’s what makes retirement terrifying for me.
Many of my colleagues around the country share my fears and retirement prospects.
Nearly a third of part-time faculty at our nation’s colleges and universities are living near, at or below the poverty line.
The old adage of spend less and save more doesn’t apply to us.
Although I’ve been teaching writing and literature at small Vermont colleges for more than 35 years, this year I will only earn $10,000. This makes it difficult to save for retirement or anything else. With the help of my modest Social Security income (which is about $900 a month) I just purchased my first home—a mobile home—last year. I’m 67 years old.
You see, saving for retirement isn’t as simple as opening an IRA at your local bank or diversifying your portfolio when you’re an adjunct instructor. In fact, this advice isn’t applicable to many working Americans in today’s economy.
Wealthy corporations have pushed down employee wages and benefits making it harder for the average person to save for retirement. They have also eliminated the pension plans that our parents and grandparents fought for decades ago.
As a result, the availability of retirement savings is often tied to income for today’s workers who have fewer savings options than previous generations. Nearly half of working-age households do not own any retirement account assets. Those of us who aren’t earning the big bucks are unlikely to have a retirement account. Those who do have retirement accounts have virtually no money in them.
According to the National Institute on Retirement Security, the median retirement account balance is $2,500 for all working-age households and $14,500 for near-retirement households.
If the financial services industry wants to help more working families prepare for retirement, it should acknowledge the old advice isn’t working.
Times are changing and so is my profession. Adjuncts around the country are standing together and forming unions to get better pay and benefits. We’re even winning retirement benefits for adjuncts, including those at my job, who didn’t have access to our employer’s plan.
I’m also hopeful that our approach to retirement planning will change too. Several states around the country have begun to address the retirement security crisis faced by low income families by creating plans for people who don’t have access to one at work.
Plans like the California Secure Choice Retirement Savings Program would help many adjuncts around the country achieve a simple, dignified retirement after lifetime of hard work and playing by the rules. Hopefully, Vermont lawmakers will pass a similar bill soon.
Also, more lawmakers need to do more to make it easier for our nation’s educators to retire by expanding Social Security to increase benefits. After all, teachers do very important work.
This article was originally printed on SEIU.org in October 2016. Reprinted with permission.
Sharyn Layfield is an adjunct professor at St Michael’s College in Vermont.
Wednesday, October 19th, 2016
The tentative agreement that the Chicago Teachers Union (CTU) struck with district management less than an hour before a midnight October 10 strike deadline has been hailed by many as a victory. Facing another round of concessionary demands, the union managed to extract $88 million from the mayor’s corporate slush fund to restore some badly needed funding to the school system. The union also managed to win an increase in compensation.
But the way that the compensation is structured—with current teachers keeping their current 7 percent pension “pickup,” and new hires receiving a salary increase in lieu of a pension contribution—has some critics decrying the deal as a solidarity-killing, two-tier contract. A pickup is the percentage of a worker’s pay that an employer puts directly into a pension fund.
The CTU’s House of Delegates meets Wednesday to deliberate over the tentative agreement and vote on whether to send it to the entire membership for ratification. If the deal is rejected, there is no guarantee that management will agree to more of the union’s demands—or even return to the table.
Two-tier contracts are an emotional subject in the labor movement. Beginning in the 1980s, employers used threats of off-shoring and sub-contracting, as well as their legal “right” to permanently replace striking union members, to force a wave of wage and benefit givebacks across many unionized industries. In order to make these cuts more palatable to the members who would have to vote on their ratification, unions negotiated agreements where current workers preserved most of their pay and benefits while future hires would bear the brunt of the cuts.
There are many epithets for this sort of thing, but the most common may be selling out the unborn. These ticking time bombs blow up years later, as the “new” hires become a larger portion of the bargaining unit and resent their veteran colleagues both for their more generous compensation packages and for the fact that the older workers signed away their younger colleagues’ right to enjoy the same. As the veterans become a minority in the workplace, there is an obvious financial incentive for supervisors to push them out through aggressive discipline. In such a situation, worker unity in future rounds of bargaining is hard to achieve.
To be clear, not all “two-tiers” are alike. The powerful New York Hotel and Motel Trades Council accepted a two-tier wage structure after surviving a 27-day strike in 1985. But the tiers only impacted workers during their first year of employment. By year two, all workers were earning the same pay rate. And, decades later, ending the tiered pay scale remained a union bargaining priority.
The United Automobile Workers (UAW) accepted a two-tier pay scale at Chrysler when the company went bankrupt in 2009. It was so severe that new hires earned only half the hourly wage of veteran employees. When members voted down a 2015 successor agreement that did not go far enough in reversing the double standard, the UAW was able to renegotiate a deal that brings newer workers closer to the traditional pay scaleover the course of seven years.
The CTU’s proposed “two-tier” is a bit more of a shell game than those concessions. The fight over Chicago’s 7 percent pension pickup has more to do with symbolism than anyone’s actual paycheck. Pension systems are complicated things that only accountants and union researchers fully understand. But basically, a pension fund needs a certain amount of money coming in every year in order to guarantee a livable retirement income for actual and projected retirees. Currently, the Chicago Teachers Pension Fund has set that target at 9 percent of every pension-eligible employee’s annual income.
Before the CTU won collective bargaining rights in the 1960s, teachers had most, if not all, of their pension contributions deducted directly from their paychecks. Over the years, the CTU was able to bargain for 7 of that 9 percent to be contributed directly into the pension fund, instead of paid as a salary increase and then immediately deducted as a personal pension contribution.
Obviously, the difference between putting 7 percent in pension contributions directly versus rolling it into salaries, and then immediately deducting it, makes no financial difference to the employer. But the 7 percent became a visible target for Gov. Bruce Rauner and Mayor Rahm Emanuel. It was money they could portray to the public and the press as “extra” compensation that teachers get that other workers don’t and demand that teachers give it up. (It should be noted that Chicago teachers aren’t eligible for Social Security, so their pensions are the only thing that stand between them and an old age spent subsisting on cat food.)
Under the tentative agreement the CTU is considering, the pay for new hires would increase by an additional 3.5 percent in two successive years. It’s not entirely clear how soon new hires would be responsible for paying the full pension contribution.
Teachers at charter schools also participate in the Chicago Teachers Pension Fund. Members of the Chicago Alliance of Charter Teachers and Staff (Chicago ACTS) at the UNO Charter School Network (UCSN) are currently bargaining over the very same pension pickup, and have set a Wednesday strike deadline.
I was a part of the bargaining team that negotiated the first contract at UCSN in 2013. Because we had a significant amount of bargaining leverage in the wake of a very public insider dealing scandal, we realized that those negotiations were our best shot to get the charter network to pay more than the whole lot of nothing that it had been contributing to teachers’ pensions.
We were successful. That 7 percent was a part of an overall compensation package we were going to win anyway. But by directing the employer to put it towards the pension, we politicized a different figure: the network’s starting salaries. Because charters compete in the same labor market as the district to recruit new teachers, the salaries they can offer are key. If that 7 percent had simply been rolled into base pay, UCSN would be able to quote starting salaries that appear to be larger than what the district offers, but really aren’t, giving the union leverage to raise wages in future negotiations. Now that starting salaries at Chicago Public Schools will appear to be 7 percent larger—if CTU members ratify the deal—the salaries that UCSN offers will appear even less competitive.
As for ratification of their contract, CTU members have to decide how important the symbolism of that 7 percent is and what impact it will have on future rounds of negotiations. The shifting of that 7 percent from one column in a spreadsheet to another strikes me as a last minute ploy to give Rauner and Emanuel a face-saving narrative that allows them to say they didn’t suffer a humiliating defeat in this round of bargaining.
“This is not a perfect agreement,” said CTU president Karen Lewis. “But it is good for the kids. And good for the clinicians. And good for the teachers, and the paraprofessionals.”
This blog originally appeared at InTheseTimes.org on October 19, 2016. Reprinted with permission.
Shaun Richman is a former organizing director for the American Federation of Teachers. His Twitter handle is @Ess_Dog.
Tuesday, October 11th, 2016
Chicago teachers will likely take to the streets early Tuesday in an escalation of their campaign to defend their jobs and improve the education of the students and the communities they serve. The Chicago Teachers Union (CTU) has said it will strike if no deal is reached by midnight.
Four years ago, the CTU won a new contract with a dramatic 7-day strike that captured national attention. Although the CTU was unable in the following years to stop Mayor Rahm Emanuel from closing more than 50 schools, last April the union continued its contract fight with a mayoral-appointed Board of Education by calling for a 1-day strike over the failure of talks to renew their contract.
With the CTU and Chicago Public Schools (CPS) still at loggerheads over a new agreement, the teachers are preparing to establish picket lines once again at schools throughout the nation’s third-largest school system, taking on the Board of Education, Emanuel, the obsessively anti-union Republican governor, Bruce Rauner, and the local business class.
The fight is, in various ways, about money. The Board of Education, under Emanuel’s control, says it must cut costs since it is running a deficit. One of its proposed solutions would eliminate a longstanding agreement to pay for part of the cost of teachers’ pensions, effectively cutting teachers’ pay.
Rauner advocates a harsh and ideological strategy designed to humiliate the teachers and break their union. He has said bankruptcy might be the best option for CPS—a move that would allow a court to void union contracts.
But the strike is about more than money, too. The CTU sees negotiations as a chance to focus on the quality of education for Chicago students. The union wants to reduce class sizes, guarantee that all schools have libraries and librarians, give teachers professional support and training to teach more creatively, and provide social services and counselors who can help students resolve problems that may be interfering with their learning or leading them to drop out.
“In my 13 years of teaching, schools and students have never faced this type of assault,” said Lillian Kass, a special education teacher in CPS and a CTU delegate.
“We are going on strike to protect our students from further cuts. We need enforceable class sizes and adequate services so all students can succeed. Teachers and students have already suffered too many cuts. More cuts are not acceptable and not sustainable,” she said.
The contract dispute is linked to profound and pernicious questions regarding class and racial divisions in the city and state. The backdrop to the current conflict is the decades-long failure of the state government to follow the state’s constitutional mandate to carry the primary responsibility for financing public education.
As a result, schools are very unevenly and inequitably funded by local property taxes. The tax burden is greatest on working-class households, while businesses successfully resist paying their fair share. Chicago taxpayers suffer an additional burden: While state taxes—including taxes paid by Chicago residents—help fund teacher pensions for the rest of the state, Chicago residents alone pay for all pension-related costs for their schools.
Low-income communities, especially those that are predominately black, have suffered most from shortcomings in funding, school closings and many other CPS policies. Reinforcing the results of other investigations, a recent report by WBEZ, the Chicago public radio station, revealed that new school construction in areas of the city where the population is growing is carefully planned to maintain high levels of racial segregation, even though it would be easy to use the construction to create a more integrated school enrollment.
Union leaders see community groups as crucial allies in the fight now unfolding. Chicago Teachers Solidarity Campaign (CTSC), with a dozen or more members, played an important role in the 2012 strike, says Steven Ashby, a labor educator at the University of Illinois. Ashby, who is the leader of a renewed CTSC, says the new coalition already includes more than 50 groups.
The CTU, CTSC and many other progressive groups are pushing for the city to redirect to the schools as much as possible from Tax Increment Financing (TIF), a funding tool. The money is largely a “slush fund” spent at the mayor’s discretion for business-related projects, and reformers argue that it could provide significant funding for schools.
The issues posed by the teachers’ strike involve a tangle of inherited pathologies of racism, business dominance, and corrupt local politics—together forming a Gordian knot that blocks progressive reform. The strike may not cut the knot, but it could help direct the next blows for reformers tackling the many challenges beyond the current, critically important task of educating the city’s children.
This blog was originally posted on In These Times on October 10, 2016. Reprinted with permission.
David Moberg, a senior editor of In These Times, has been on the staff of the magazine since it began publishing in 1976. Before joining In These Times, he completed his work for a Ph.D. in anthropology at the University of Chicago and worked for Newsweek. He has received fellowships from the John D. and Catherine T. MacArthur Foundation and the Nation Institute for research on the new global economy. He can be reached at email@example.com.
Wednesday, September 28th, 2016
Workers employed by candy manufacturer, Just Born Quality Confections, in Bethlehem, Pennsylvania, are on strike over the company’s pension plan proposal. The strike, workers allege, hits the company—which makes Peeps, as well as Mike and Ike and Hot Tamales candies—just as next year’s Easter orders are meant to be made.
“This is my livelihood,” says Alex Fattore, a mechanic who has been at Just Born since 1980. “We make Easter happen. I want to go back in there and make Easter happen.”
Roughly 400 workers walked off the job September 7, drawing a hard line against the company’s attempt to switch new hires to a 401(k), instead of the multiemployer pension plan that workers are presently a part of. They are represented by the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM) Union Local 6.
The company claims that it’s concerned about the pension plan’s long-term viability. The plan reported assets of $5 billion and liabilities of $8 billion, and projected insolvency within 14 years, according to the company. The union, however, counters that the company is not allowed to put pension details on the negotiating table, per pension fund rules. The company is pushing its plan as a part of collective bargaining negotiations for an agreement that expired in June.
“The company is growing,” says chief shop steward Keith Turner, a machinist with 21 years of Just Born experience, alluding to its claims of double-digit growth. “It’s kind of ironic that they would turn around now and tell us that they can’t afford anything.”
Workers additionally claim that if the move to a 401(k) plan for new hires were to go into effect, it would only further weaken the multiemployer pension fund, forcing the fund’s trustees to reduce retiree benefits.
Just Born did not respond to a request to comment, but it released a statement that read, in part: “Our proposal—to have existing associates remain in the current pension plan and to have future hires participate in a 401(k) plan—provides a respectful path that honors our current associates’ existing benefits, and provides a sustainable retirement benefit for our future hires.”
“It’s the equivalent of—let’s say you signed a 30-year mortgage, and after 20 years you decide, you know I don’t want to pay this part of it anymore so I’m just not going to—and you just can’t do that,” Turner tells In These Times.
The Pennsylvania AFL-CIO has called for a boycott of Just Born products.
While this is the first strike at a Just Born facility in decades, this is not the first time the company has attempted to impose a change in pension plans, according to union officials. Last year, the company implemented a final contract including the same 401(k) plan proposed at the Bethlehem plant, after declaring an impasse in its contract negotiations with the roughly 35 workers at its Goldenberg’s Peanut Chews factory in Philadelphia. BCTGM challenged the change with the National Labor Relations Board but was denied, leading the union to take the matter to federal court in a case that is still pending, a year and a half later.
“We’ll say, a few years from now, if we didn’t stand up and stand our ground—that we had the opportunity to stand our ground with this company and say we aren’t going to take this,” Fattore tells In These Times. “We’re going to stand our ground and we’re going to fight (for) what’s right.”
Since workers voted to strike, they have tried to keep up morale. An unfair labor practice charge was filed by Local 6 after allegedly discovering that an individual affiliated with Just Born contacted striking workers, posing as a union official, telling them to return to work. The complaint, filed with the National Labor Relations Board, is pending.
Another, more public, company action that is causing substantial worry among striking Just Born workers is the hiring of replacement workers at the facility, with about 175 reportedly attending a job fair and another 600 applying for jobs online. As of press time, both sides have agreed to come back to the bargaining table alongside a federal mediator this week.
“We pretty well know from people inside, and from what we can see on the outside, that they haven’t made a Peep yet,” says Turner. “The longer that this goes on, the more squeezed that they are for their Peep production. We’re hoping that a little bit of hunger from us, and a little bit of hunger from them, makes something happen.”
This blog originally appeared at inthesetimes.com on September 27, 2016. Reprinted with permission.
Mario Vasquez is a writer from southern California. He is a regular contributor to Working In These Times. Follow him on Twitter @mario_vsqz or email him firstname.lastname@example.org.
Wednesday, August 14th, 2013
Losing a pension you’ve worked years to earn is a nightmare scenario, one that can change a comfortable, secure retirement into one filled with worries and penny-pinching as Social Security goes from being part of your retirement income to all of it. For public workers in many places, including firefighters and police in Detroit, it’s a doomsday scenario, because they don’t get Social Security at all.
About 30 percent of public employees nationwide aren’t covered by Social Security; government workers weren’t covered by the program at its inception and while many have been moved under its umbrella over the years, some cities, towns, and states continue to run pension plans that don’t include Social Security. Detroit’s firefighters and police are in that group:
Of the nearly 21,000 city retirees now collecting pensions, 9,017 retired police officers, firefighters or their surviving spouses don’t get Social Security, or about 44 percent of all city pensioners.
For those who have worked in other jobs for long enough to qualify for Social Security, those benefits are reduced by a percentage of their Detroit pension. That’s not a lavish pension, by the way: The average annual police pension in Detroit is $30,000, compared with $58,000 in Los Angeles, $47,000 in Dallas, and $42,000 in Kansas City. And public workers’ pensions, unlike the pensions of many private sector workers, aren’t insured by the federal Pension Benefit Guaranty Corporation, meaning if they lose their Detroit pensions, that’s it, there’s no safety net to catch them.
What we’re talking about here are workers who spent decades earning less than they might have elsewhere in exchange for the promise of a secure—though not lavish—retirement. And now they face the very real threat of being left with a small fraction of what they earned and need to live on. They kept their promises to the city of Detroit. It must keep its promises to them.
This article originally posted on Daily Kos Labor on August 12, 2013. Reprinted with permission.
About the Author: Laura Clawson is the labor editor at Daily Kos
Thursday, July 25th, 2013
Even before one of their own was appointed emergency manager of the city, lawyers who were consulting with Michigan officials over the winter believed Detroit should move into bankruptcy proceedings that would free the city to walk away from its commitments to retirees. Emails between Kevyn Orr — now Detroit’s emergency manager but at the time an attorney for the law firm Jones Day — and his colleagues show the lawyers believed moving directly to bankruptcy would be better for the city than going through a serious negotiating process.
In one email, an assistant to Gov. Rick Snyder (R) promises to set a meeting between Orr and someone “who is not FOIAble,” suggesting an intent to evade transparency laws. In another, Jones Day lawyers suggest to Orr that elevating Detroit’s bankruptcy in national media coverage would “give you cover and options on the back end to make up for lost time there.” Orr rejected that suggestion as unhelpful. Jones Day continues to represent Detroit in the proceedings, which could take a year or longer.
The messages made public thusfar show Jones Day attorneys defining bankruptcy as inevitable in their own words.
“It seems that the ideal scenario would be that Snyder and Bing both agree that the best option is simply to go through an orderly Chapter 9 [bankruptcy],” one Jones Day attorney writes to Orr in the emails. “Appointing an Emergency Manager, whose ability to actually do anything is questionable given the looming political and legal fights, would only serve to kick the can down the wrong path and unreasonably delay any meaningful resolution of Detroit’s problems.” Defining bankruptcy as the only route to a “meaningful resolution of Detroit’s problems” casts further doubt on the intent of the negotiations that followed Orr’s appointment in March, but a spokesman for Orr called those doubts “absurd.”
The emails were released in response to a Freedom of Information Act request by Robert Davis, a local labor activist with a troubled history. Davis faces federal corruption charges over school board funds that were spent on an advertising campaign. When the charges were filed in 2012,Davis called them politically motivated and said he is innocent.
One January exchange shows Orr reluctant to take on the emergency manager job, and concerned that the law empowering Gov. Rick Snyder (R) to appoint such officials “is a clear end-around the prior initiative that was rejected by the voters in November.” One January 31, Orr wrote that the entire emergency manager system “appears to merely adopts [sic] the conditions necessary for a chapter 9 filing.”
Orr’s assessment of the emergency manager process reinforces retiree advocates’ arguments that Orr’s actions once appointed were not good-faith negotiations with city employees, but an effort to check necessary boxes prior to filing for bankruptcy. In June, when Orr issued a proposal to retirees and bondholders in lieu of declaring bankruptcy, analysts wrote that the proposal appeared designed to be unpalatable, paving the way for the bankruptcy filing. Orr and Snyder have made clear that the bankruptcy resolution will include some cuts to retiree benefits, which are about $1,600 per month for most of the city’s 21,000 pensioners. “They made me some promises, and I made them some promises,” 76-year-old retired police sergeant William Shine told the New York Times. “I kept my promises. They’re not going to keep theirs.”
Some legal hurdles may prevent the city from reneging on pension promises in bankruptcy, but the outlook is uncertain.
This article originally posted on ThinkProgress on July 23, 2013. Reprinted with permission.
About the Author: Alan Pyke is the Deputy Economic Policy Editor for ThinkProgress.org. Before coming to ThinkProgress, he was a blogger and researcher with a focus on economic policy and political advertising at Media Matters for America, American Bridge 21st Century Foundation, and PoliticalCorrection.org.
Tuesday, May 14th, 2013
Union members in Swampscott, Mass., this week showed just how grassroots democracy works when a coalition of unions from the North Shore Labor Council mobilized to turn back an attack on public employees’ health care and retirement security.
First a little background. In the Bay State, municipal employees’ health and retirement benefits, while negotiated on a local level, are part of a state-administered system. However, a Massachusetts “Home Rule Petition” law allows cities and towns to seek exemption from certain state laws and regulations.
In February, Swampscott’s Board of Selectmen voted 3-2 to seek a Home Rule Petition to cut town workers’ pensions by moving from the state system’s defined-benefit plan to a self-administered defined-contribution plan, and to change health care benefits. But a Home Rule Petition must be approved at a Town Meeting. In Swampscott, a town of about 14,000, that meant approximately 250 voter-elected Town Meeting members had to give the OK.
That’s when union members went to work to convince Town Meeting members that not only would the changes proposed for the teachers, firefighters, police officers, librarians and other public employees hurt the workers, it would save no money and be a major financial risk for Swampscott.
With a few months before the May 6 Town Meeting, unions and the labor council mapped out a mobilization strategy that included leafleting and neighborhood door knocking by union members, spotlighting the danger of the Home Rule Petition scheme. Postcards to each union member in town urged them to get in touch with their Town Meeting member—more than likely a neighbor or friend—to vote against the cuts to health care and retirement.
On May 6, the hard work paid off when the Home Rule Petition was defeated by better than a 3-to-1 margin.
The unions that carried the campaign to victory included AFSCME, Fire Fighters (IAFF), MassCOPS (an IUPA affiliate) and NEA.
This article was originally posted on the AFL-CIO on May 10, 2013. Reprinted with Permission.
About the Author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journal and managing editor of the Seafarers Log. He came to the AFL-CIO in 1989 and have written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety.
Monday, January 14th, 2013
Flight attendants who work for Spirit Airlines filed a lawsuit against the airline for reneging on a contractual commitment to provide equal benefits for all employees by forcing employees who want health care coverage for their domestic partners into a lower-quality health care plan than the plan covering other employees. The flight attendants, members of the Flight Attendants-CWA (AFA-CWA), said that management is using procedural loopholes to avoid providing equal benefits. Todd St. Pierre, the AFA-CWA president at Spirit, said:
We are outraged that management refuses to treat the families of their employees equally. At a time when equality issues have sparked a social awakening across our nation, management’s trampling on employees’ rights is deplorable. Their discriminatory behavior must be rectified immediately. Flight Attendants worked hard to ensure that these rights were included in our legally binding contract so that we could provide health care security for our loved ones. Shame on Spirit management for their blatant disregard for equality and for turning their backs on their obligations.
In a related story, aerospace manufacturer Boeing Co. said that despite the passage of a referendum legalizing gay marriage in Washington State—where Boeing has significant operations—they were not required to provide same-sex couples with benefits, including pensions. While Boeing publicly says they are evaluating what the referendum means to them, SPEEA/IFPTE Local 2001 executive director Ray Goforth said that Boeing officials explicitly told him that the benefits would not be extended to same-sex couples.
Alaska Airlines flight attendants, also members of AFA-CWA, issued a statement supporting members of SPEEA at Boeing in their fight for equal rights. Alaska AFA-CWA President Jeffrey Peterson said:
“AFA has a longstanding commitment to equality regardless of sexual orientation, gender identity and gender expression which is why Alaska Flight Attendants stand in solidarity with our aviation colleagues at Boeing in their struggle for equal rights. With an all-Boeing fleet of aircraft, Alaska Flight Attendants depend on the professionalism and dedication of SPEEA members each and every day.
Voters in nine states across the nation have instructed their elected representatives to address marriage equality issues. Recently in Washington, all couples regardless of gender finally have the opportunity to legally marry. Yet, Boeing is refusing to recognize married couples equally.
We are all partners in the success of the aviation industry and we call on Boeing executives to provide equal benefits to all couples legally married under state law.”
This post was originally posted on AFL-CIO on January 14, 2013. Reprinted with Permission.
About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist. Before joining the AFL-CIO in 2012, he worked as labor reporter for the blog Crooks and Liars. Previous experience includes Communications Director for the Darcy Burner for Congress Campaign and New Media Director for the Kendrick Meek for Senate Campaign, founding and serving as the primary author for the influential state blog Florida Progressive Coalition and more than 10 years as a college instructor teaching political science and American History. His writings have also appeared on Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere. He is the proud father of three future progressive activists, an accomplished rapper and karaoke enthusiast.
Thursday, December 13th, 2012
Money that was intended for employee pensions was used by Hostess Brands management to cover operating expenses and workers were never compensated for the lost payment, Yahoo News reports. An undetermined amount of money that Bakery, Confectionery, Tobacco Workers and Grain Miller (BCTGM) members were supposed to receive as part of their contract with the company was used to keep the company running after mismanagement led to significant losses and eventual bankruptcy.
This was during the same time period that Hostess began paying out massive bonuses to executives. BCTGM learned that the then-Hostess CEO was to be awarded a 300% raise, and at least nine other top executives were to receive raises ranging between 35% and 80%.
The process of taking the pension money was quite simple for Hostess:
For example, John Jordan, the local union financial officer for [BCTGM] Local 334 in Biddeford, Maine, said workers at a Hostess factory in Biddeford agreed to plow 28 cents of their 30-cents-an-hour wage increase in November 2010 into the pension plan.
Hostess was supposed to take the additional 28 cents an hour and contribute it to the workers’ pension plan.
Employees never saw that 28 cents. In July 2011, Hostess stopped making pension contributions and used the money to run the business. Employees never received the pension funds and the compensation Hostess promised the workers was not made up in wages, either.
In all likelihood, the tactic doesn’t violate federal law because the money didn’t get paid to employees first, but went directly to the pension fund. Lawyers call the situation “betrayal without remedy” and it’s unlikely the money can be recovered.
Hostess CEO Gregory Rayburn’s response ranged from understatement to “it’s not my fault.”
Gregory Rayburn, Hostess’s chief executive officer, said in an interview it is “terrible” that employee wages earmarked for the pension were steered elsewhere by the company.
“I think it’s like a lot of things in this case,” he added. “It’s not a good situation to have.”
Mr. Rayburn became chief executive in March and learned about the issue shortly before the company shut down, he said. “Whatever the circumstances were, whatever those decisions were, I wasn’t there,” he said.
Rayburn’s predecessor at Hostess, Brian Driscoll, refused to comment.
The end of pension contributions by the company was a key reason for the BCTGM strike:
Halted pension contributions were a major factor in the bakers union’s refusal to make a deal with the company. After a U.S. bankruptcy judge granted Hostess’s request to impose a new contract, the union’s employees went on strike. Hostess then moved to liquidate the company.
“The company’s cessation of making pension contributions was a critical component of the bakers’ decision” to walk off the job, said Jeffrey Freund of Bredhoff & Kaiser PLLC, a lawyer for the union.
“If they had continued to fund the pension, I think we’d still be working there today,” said Craig Davis, a 44-year-old forklift operator who loaded trucks with Twinkies, cupcakes and sweet rolls at an Emporia, Kan., bakery, for nearly 22 years.
The amount of employee compensation lost by the company is not known, but the numbers are staggering:
In five months before this past January’s bankruptcy filing, the company missed payments to the main baker pension fund totaling $22.1 million, Mr. Freund said.
After that, forgone pension payments added up at a rate of $3 million to $4 million a month until Hostess formally rejected its contracts with the union. The figures include company contributions and employee wages that were earmarked for the pension, according to Mr. Freund.
This post was originally posted on AFL-CIO on December 11, 2012. Reprinted with Permission.
About the Author: Kenneth Quinnell is a senior writer for AFL-CIO, and a former precinct committeeman in the Leon County Democratic Party. He is a former vice chair of the Florida Democratic Party’s Legislative Liaison Committee, and during the 2010 election, through the primary, Kenneth Quinnell worked for the Kendrick Meek campaign. He has written for Think Progress, AFSCME and for OurFuture.org on Social Security.