Teamsters demand Congress, feds save pensions

Teamsters President Hoffa and Sen. Sanders talked pensions on the Hill today.

Hundreds of Teamster members and retirees came to Washington today to voice outrage over proposed rules governing pension cuts and support for legislation that would bolster multi-employer plans at the center of the dispute.

They gathered at both a Capitol Hill rally this afternoon and a hearing earlier in the day hosted by the U.S. Treasury Department to share how legislation proposed by Sen. Bernie Sanders (I-Vt.) and Rep. Marcy Kaptur (D-Ohio) is needed and how they would be adversely affected by potential cuts to their retirements.

Teamsters General President Jim Hoffa told workers during the Hill event that the federal government guaranteed pensions would be there for workers when they enacted the Employee Retirement Income Security Act (ERISA) more than 40 years ago and must not go back on it now:

You played by the books and they pulled out the rug. It is devastating. We've been fighting it. There was a promise made, and we've got to keep it. 

Sen. Sanders, a Democratic presidential candidate, said the legislation is key because it would protect retirees who could suffer from pension changes imposed by Congress late last year
through no fault of their own. He said it would be a travesty to implement cuts that could reduce benefits by as much as 60 percent:

Tens of thousands of retirees in the middle class today, who intended to retire in the middle class, could slip into poverty. That is unconscionable and we cannot allow that. We have got to send a very loud message.

Teamsters rally against pension changes.

Earlier in the day, Teamsters International Vice President John Murphy and others testified before a panel of federal officials representing the Treasury and Labor departments as well as the International Revenue Service and the Pension Benefit Guaranty Corporation. They urged members to do everything they can to protect retirees in failing pension plans.

If cuts are ultimately necessary, Murphy said they should be phased in to minimize the burden on retirees and should be as low as possible to keep a given pension solvent:

The final regulations should not provide methods for plans to make larger cuts than necessary. A phase-in will ease the shock of the reduction. Maybe, instead of $100, you reduce $50 and then two years later, $25. That way it's not an open cut.

Retirees and workers also offered their own suggestions. They noted it is ridiculous that they are getting punished for decisions made by others and said there are better ways to keep pensions afloat, such as cutting the large investment fees paid by pensions.

Paul Flacke, a former president of Local 661 in Cincinnati who worked for 32 years before getting injured and forced to retire, said he knows workers paid their fair share into pensions because he helped negotiate many contracts. He urged the board to consider new pension rules to look at financial fees as a potential way to bolster retirement funds:

We are talking about millions of dollars being charged for moving our money. Why are they moving our money around?

Don't pare back retirement security!

Everyday Americans are finding it increasingly hard to cover their daily expenses. So it's not surprising that saving for retirement is falling behind. But many companies are making it even more difficult by reducing benefits and options for their workers.

Rep. Marcy Kaptur talked pensions on Capitol Hill in June.

A report earlier this year found that the U.S. ranks only 19th in the world when it comes to retirement security, behind Iceland and just barely in front of Slovenia. That's nothing short of an embarrassment for this country. But it is not surprising given the reduction in pensions, the fluctuations in 401(k) savings plans and continued talk of raising the retirement age for Social Security.

The Teamsters have taken an active role in fighting to protect retirees' and workers' nest eggs. The IBT and other unions got behind the Keep Our Pensions Promises Act (KOPPA), introduced earlier this year by Sen. Bernie Sanders (I-Vt.) and Rep. Marcy Kaptur (D-Ohio). It's more essential now than ever.

On Thursday, the U.S. Treasury Department will hold a hearing in Washington on finalizing a rule that opens the door to pension cuts. This would be the first time since President Ford signed the Employee Retirement Income Security Act (ERISA) into law that pension retirement security would be compromised. 

The futures of some 1.5 million workers who are enrolled in about 200 retirement plans nationwide are at risk, and potentially many more in the future if we do not act. The U.S. must take action now and stand up to these cuts. Lawmakers owe it to hardworking Americans who have earned the ability to retire with dignity. They must stand up to these cuts and restore ERISA’s protections before time runs out.

Similar attention needs to be focused on expanding, and not shrinking, Social Security. More lawmakers seem interested in making hardworking Americans work even longer to receive benefits than expanding the successful program to make sure people can have a more comfortable life in their golden years. It's nothing more than a trick, as the National Journal noted:

Raising the Social Security retirement age ... means that future retirees will get smaller payouts than previous ones did after starting to collect benefits at the very same age. The differences can be dramatic, as the following example illustrates: If, under the current cutoff, you’re eligible for $1,000 at age 67, you could instead choose to get $700 a month for retiring at 62 or $1,240 a month for retiring at 70. But if the retirement age was increased to 70—a number mentioned by John Boehner, Jeb Bush, and Chris Christie—the $1,000 benefit at 67 turns into $800, the $700 benefit at 62 turns into $565, and the $1,240 benefit at 70 turns into $1,000. 

These cuts matter significantly on the level of the individual. But, even if Social Security as a whole were in crisis (it’s not), cutting the benefits that people can collect before age 70 wouldn’t even be a particularly effective way of closing any budget gaps: Increasing the retirement age from 67 to 68 would erase 12 percent of the deficit that Social Security is expected to face 75 years from now.

As it stands, nearly two-thirds of retirees count on Social Security for half or more of their retirement income. For more than 30 percent of retirees, the funds make up 90 percent or more of their income. It may not be right, but it is true.

Policymakers cannot in good faith turn a blind eye to these numbers. Everyday Americans are counting on them. It's time to take a stand for workers and retirees who don't have friends in high places. They must do the right thing.

Today's Teamster News 09.21.13

Striking railroad Teamsters ordered back to work, no single operators allowed  TeamsterNation   ...An Akron, Ohio, district court judge this afternoon ordered striking locomotive engineers and trainmen at the Wheeling and Lake Erie Railway back to work. He also ordered the railroad to refrain from allowing supervisors or management to operate trains...
Warehouse Workers At IKEA Vote To Join Teamsters  teamster.org   ...Warehouse workers, employed at the IKEA distribution center in Frederickson, Wash., have voted to join Teamsters Local 117. The 64 workers at the facility came together seeking job security, fair and equal treatment, strong representation, and respect...
Hoffa, Brune: Trade Is Good When It's Fair  teamster.org   ...It's been almost 20 years since the signing of the North American Free Trade Agreement (NAFTA), and families and communities are still reeling from its consequences...
Teamsters Picket Rochester Wegmans  teamster.org   ...Wegmans-picketing Teamsters from Local 118 are calling on their employer to protect good jobs in Rochester and stop retaliating against employees for standing up for their rights under Federal law. Today the union will file an unfair labor practice charge against Wegmans due to the company’s actions against employees...
Sullivan settles five-year contract with Teamsters  Mid-Hudson News   …Ratifying a new contract was a tossup among members Teamsters Local 445 who work for Sullivan County in New York. The union narrowly agreed to the new five-year deal by a 152 to 141 vote...
Teamster Women Get Fired Up  teamster.org  ...Teamsters General Secretary-Treasurer Ken Hall addressed the Women’s Conference on Friday, the second day of the annual event, in New Orleans. Get the full coverage of the conference here... |
Rural/Metro Files Two Critical Documents—Plan of Reorganization and Disclosure Statement  teamster.org   ...Rural Metro filed two critical documents outlining how the company plans to emerge from bankruptcy on Sunday, September 15. Those documents are the Plan of Reorganization and Disclosure Statement...
ABF Teamster Wins National Four-Axle Competition Championship  Teamsters Local 492   ...Teamster and Albuquerque ABF Line Driver Ralph Garcia won first place in the four-axle competition at the 2013 National Truck Driving Championships, which was held in Salt Lake City late August...
Labor Leaders React to Hotel Latest  Tristate   ...The Southwestern Indiana Building and Construction Trades Council said Thursday it stands in full support of the proposed downtown hotel. Chuck Whobrey, president of Teamsters Local 215, wasn't at the meeting, but said the hotel is necessary for downtown redevelopment...
Employers cut jobs in 20 US states in August  Associated Press   ...Unemployment rates rose in 18 states, fell in 17 and were unchanged in 15...
Target to Hire 18,000 Fewer Seasonal Workers This Holiday Season; Expect Other Retailers to Do the Same  Mish's Global Economic Trend Analysis   ..."Target lowered their expectations for the rest of the year, citing a tougher-than-expected spending environment..."
L.A. homeless hired to buy latest iPhones  USA Today   ...Many driven from Skid Row to Pasadena say they were unpaid and stranded after Apple Store halted scheme...
GOP's misguided attack on food stamps (opinion)  Los Angeles Times   ...Unable to push a $20-billion cut in food stamps through the House in June, Republicans are now seeking to cut $40 billion over 10 years by tightening eligibility and cutting off able-bodied adults who don't find or train for jobs. ...But while it may motivate some idle adults to get to work, it would also punish those who simply can't find jobs at a time when there are three applicants for every opening...
Offshoring Linked to Declining U.S. Labor Share, Likely to Continue  Brookings   ...The decline in the U.S. labor share – now at its lowest level in the post-war period after the Great Recession – has been concentrated in sectors that face increased import competition in the wake of the overall rising role of imports in the U.S. economy, according to a new paper presented today at the Fall 2013 Conference on the Brookings Papers on Economic Activity (BPEA)...
LinkedIn Customers Allege Company Hacked E-Mail Addresses  Bloomberg   ...LinkedIn Corp. (LNKD), owner of the world’s most popular professional-networking website, was sued by customers who claim the company appropriated their identities for marketing purposes by hacking into their external e-mail accounts and downloading contacts’ addresses...
Unions launch offensive against potential government shutdown  Washington Post   ...Federal employee unions, having guided their members through government shutdown threats in 2011 and 2012, are arming for another possible shutdown in 11 days if Congress cannot resolve its partisan fiscal battle...
Contractor that vetted Snowden says it also ran background check for Navy Yard shooter  Washington Post   ...USIS, the Falls Church, VA government contractor that handled the background check for National Security Agency leaker Edward Snowden, said Thursday that it also vetted Navy Yard shooter Aaron Alexis for his ­secret-level clearance in 2007...
Arkansas lawmakers back cuts to food stamp program  KATV ABC 7   ...Arkansas' four congressmen have voted to cut nearly $4 billion a year from the food stamp program, a 5 percent reduction to the nation's main feeding program used by more than 1 in 7 Americans...
Ex-Halliburton manager charged in Gulf of Mexico spill probe  Associated Press   ...A former Halliburton manager was charged Thursday with destroying evidence following BP’s 2010 oil spill in the Gulf of Mexico, a case that coincides with a guilty plea to a related charge by the Houston-based oilfield services company...
Chase Bank, JPMorgan Chase to refund customers $309 million for unfair billing  Sacramento Bee   ...Federal regulators on Thursday ordered Chase Bank and JPMorgan Chase to refund $309 million to more than 2 million customers for illegally billing them for credit-monitoring services they never received...
Federal Reserve Program Is Socialism For The Rich  firedoglake   ...Why is there such a gap between the haves and the have-nots? Probably because the Federal Reserve is pumping up assets for the haves to the tune of $85 billion, a month...
Elites’ strange plot to take over the world  Salon   ...Western elites in America and Western Europe after World War II made a serious effort to get rid of nations altogether, and combine all “freedom-loving peoples” into one giant “Atlantic Union,” a federal state built on top of the NATO military alliance...
Don't take ax to public's right to know (opinion) The Cap Times   ...If Wisconsinites were looking for a measure of how far out of control things have gotten under Gov. Scott Walker’s hyperpartisan approach to governing, they need look no further than an incident involving a key confidante of the governor and a process server seeking to deliver paperwork related to the state’s open records law...

This is what we union thugs do in our spare time

We collect food and clothing for the needy, even after we've retired from our jobs. Because we still haven't retired from our union.

The Retiree Chapter of Local 118 in Rochester, N.Y., is collecting food and clothing for poor families. Under the leadership of Gino Arilotta, the retirees will hold their 15th annual food and clothing drive from Oct. 7-16. All the food and clothing will be taken to the Unified Mission in Rochester.

That's not all the retirees from Local 118 do, by the way. They volunteer at hospitals and nursing homes, deliver "Meals on Wheels," participate in the "Adopt-A-Highway" program, sponsor youth sports teams and support the Rochester Thugs Teamsters Charity Foundation.

How unions took the fall for NJ's pension scandals

New Jersey's bombastic governor Chris Christie doesn't like to point fingers at the real perps behind the state's pension fund problems. He prefers to blame government workers instead of bankers and governors. Christie is taking a page from New York Post publisher Rupert Murdoch, who wrongly accused New York City's sanitation workers for slow snow removal over Christmas instead of the city's vacationing (in Bermuda) billionaire mayor.

Here's Christie talking to the Wall Street Journal recently about reforming pensions:

The ultimate reform is to move to a 401(k)-style [public pension] plan that provides transparency to taxpayers while allowing government employees -- not politicians or union bosses -- to control their retirement savings with individual accounts. How to enact such reform in New Jersey? You get a Republican legislature, that's how you do it. I'm dealing in a context where the Democratic Party in my state has been ruled by the public-sector unions.

Christie tipped his hand here, revealing that his fight over pensions is really a fight to eliminate his political enemies -- government unions. And it's nonsense because the government unions weren't the ones with their hands in the state's pension kitty for the last 15 years.

New Jersey's pension problems result from theft, fraud and mismanagement by banks and government officials.  The incomparable Bob Herbert says it all began with former Gov. Christie Todd Whitman's "buy-now, pay-later" economic policy. Fifteen years ago, Herbert predicted that New Jersey would pay the price for Whitman's pension shenanigans.

The pension obligations at some point will come due and future generations will have to meet them. Not only will the money have to be made up, but future taxpayers will be deprived of the income that the money -- if properly invested now -- would be expected to generate.

New Jersey is now at that point. Here's how it got there: Whitman diverted billions of dollars that should have gone into the pension funds to the state budget. Christie did that again last year, by the way. He called the $3.1 billion diversion a "reform."


There was also mismanagement and fraud. Fortune reported on a brilliant move by Whitman that was supposed to save taxpayers $45 billion. It cost them instead. Under Whitman, New Jersey in 1997 sold $2.75 billion of bonds that it paid 7.6 percent interest on. It invested that $2.75 billion in a fund that earned less than 6 percent annually. Banks, not government unions, received income from those transactions. Those transactions wouldn't have happened in the first place if the books hadn't been cooked. (Note: it wasn't the unions that cooked the books.)


firedoglake reported on yet another scandal that cost union retirees $115 million. A New Jersey pension fund overseer named Orin Kramer in 2006

...successfully pushed to shift a huge chunk of the state’s $72 billion pension fund to private money managers rather than state employees. Kramer was the "prime architect of the diversification strategy"  that saw union retirees pick up the tab for $115 million in Lehman Brothers losses on money invested shortly before the firm’s collapse.  (Lehman Brothers, you will recall, is the firm that Ohio's new union-busting governor John Kasich worked for.)

Last year, the SEC accused New Jersey of lying about its pension fund assets. The New York Times reported that the state had diverted billions of dollars from its pension fund for teachers, using "unorthodox transactions authorized by the Legislature and governors from both political parties."

New Jersey settled the case last year without admitting wrongdoing. There was no fine, no accountability. As the Times reported in August, the SEC issued a "cease and desist" order but didn't name

...any individual state officials, nor the bond underwriters and other professionals whose job it was to vouch for the state's financial statements. New Jersey's largest bond underwriters during the period in question include Citigroup, J. P. Morgan Securities, Morgan Stanley, Bank of America, Merrill Lynch, Goldman Sachs and Barclays Capital...

Actually, it's the unions that are wrongly being held accountable for New Jersey's mess. The Naked Capitalist has some good advice for the Garden State's unions:

...the unions need to find a way to regain the moral high ground. New Jersey, one of the richest states in the US, has mismanaged its way into this mess. That fact needs to be hammered hard, and the unions also need to put forward a realistic plan in which they make concessions provided upper income earners do their part to address the budget shortfalls...

Don't look now, but Christie will probably again veto a proposed tax on the millionaires who benefited from the looting of the state's pension funds.

This is what a pension is all about

Our sister Teamster, who goes by the blog handle Rural Route, wrote a tremendous post today at dailykos about the importance of a pension. It's definitely worth reading the whole thing, but here are a few choice observations:

First she described her neighbors in Florence, Minn., who don't have a pension:

Both are guys in their late 50s/early 60s, they worked hard all their lives and you can see it in their hobbled walk and limited range of motion. Neither works full time anymore as they try to scrape by on occasional work and disappearing unemployment insurance.

Then she describes a group of healthier, happier retirees who do have pensions after a lifetime spent loading and driving trucks delivering Wonder, Sara Lee, Earthgrains, Master, Taystee, Old Home, Emrichs, Hostess, Mickey and Egevist baked goods. They were getting together for a retiree luncheon:

...we have a lot of aches, pains, and worse from pushing, pulling, and lifting bakery products and milk for most of our adult life. At my table alone two of us in our 60s had already had joint replacements. And thanks to our union contracts, we can keep our health insurance when we retire, but it ain't cheap. And thanks again to our union contracts that kept us from having to sleep in the trucks we're clearly exceeding the 61 year life expectancy of over the road drivers...I saw several seven and eight decade old teamsters, and a brother who hired on in the 1950s stopped by our table to visit...Contrast that with the life expectancy of 55 for the largely non union over the road drivers who are members of the Owner Operators Independent Driver's Association.

Her conclusion:

Even modest pension benefits can greatly improve the lives of seniors- we may not be rich, but we're not drowning in poverty. And despite what the sleezy promoters of the 401K and IRA industries will tell you, the cost isn't that great- the current employer contribution to our pension plan is only $100 a week, that's at most $2.50 an hour. That $5200 a year investment for 30 years provides a $36,000 a year pension for life at as early as age 55.

 Read the whole thing here.