Time for revenge for Big Labor? Of course you can argue that perhaps political payback is fair play--but their attempt at a power grab might end up having taxpayers bail out underfunded union pensions as a reward from the White House.
SHOT:
“Labor unions wounded by a GOP-led war on collective bargaining rights are plotting their revenge. Top labor leaders say they expect to spend more than ever before on both state and federal contests this year. And if recent elections are any indicator, unions could drop more than $450 million, which they reportedly doled out in the 2008 election…”
“As the A.F.L.-C.I.O. prepares to endorse President Obama on Tuesday, labor leaders say they will mount their biggest campaign effort, with far more union members than ever before — at least 400,000, they say — knocking on voters’ doors to counter the well-endowed ‘super PACs’ backing Republicans…”
CHASERS:
Union Pensions Funds Are Grossly Underfunded:
“The average union pension has resources to cover only 62 percent of what is owed to participants, according to the Pension Benefit Guarantee Corp. Pensions with less than 80 percent of the assets needed to cover present and projected liabilities are considered ‘endangered,’ while those that fall below a 65 percent threshold are classified as ‘critical’ under the Pension Protection Act of 2006.” (Kevin Mooney, “Unions Want Washington's Help With Pension Funds,” The Washington Times, 3/25/10)
Nearly Half Of All Major Union Pension Plans Are Underfunded:
“Almost half of the nation’s 20 largest unions have pension funds that federal law classifies as ‘endangered’ or in ‘critical’ condition due to being underfunded, an Examiner review of federal actuarial reports … Eight of the largest unions have underfunded plans, according to the most recent 5500 reports, including the Service Employees International Union (SEIU), the United Food and Commercial Workers (UFCW), the International Brotherhood of Electrical Workers, the Laborers International Union of Northern America, the International Association of Machinists, the United Brotherhood of Carpenters, the International Union of Operating Engineers, and the National Plumbers Union. The average union pension has resources to cover only 62 percent of what is owed to participants, according to the Pension Benefit Guarantee Corporation (PBGC). Less than one in every 160 workers is covered by a union pension with required assets.” (Kevin Mooney, “Nearly Half Of Major Union Pensions Are Underfunded,” Washington Examiner, 6/9/09)
Unions Admit Their Pension Plans Are “Facing Difficulties”:
“Michelle Ringuette, a spokeswoman for the Service Employees International Union (SEIU), acknowledged that pension funds for her union and for others were facing difficulties but said the fault lies with businesses, not the unions. ‘SEIU’s pension funds – like all pension funds – were hit hard when the market collapsed in late 2008. The union is deeply concerned about the instability big banks and the high-finance industry have created in the markets and throughout our economy, and we take very seriously all threats to the retirement security of our members and people who work for a living,’ said Ms. Ringuette, who represents the nation’s largest union by number of members. Diana Furchtgott-Roth, a scholar with the Hudson Institute, dismissed that explanation. ‘A lot of these plans were in trouble even before the stock crash, and the members are entitled to know,’ she said, adding that ‘there should be a law against putting out information about pension funds that is simply false.’” (Kevin Mooney, “Unions Want Washington's Help With Pension Funds,”The Washington Times, 3/25/10)
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