Retirees back bill to get troubled pension funds on track

December 4, 2017 by

Retirees packed the UFCW Local 1189 union hall for a rally with U.S. Reps. Tim Walz and Rick Nolan.

Federal legislation introduced last month would lend cash to ailing pension funds so they can meet their obligations to current retirees and grow enough to serve people still working toward retirement.

The Butch Lewis Act, authored by Sen. Sherrod Brown of Ohio, received a full-throated endorsement from retirees, union leaders and lawmakers at a rally organized by Save Our Pensions-Minnesota on Saturday.

Over 100 people, mostly retired and active Teamsters in the beleaguered Central States Pension Fund, packed the United Food and Commercial Workers Local 1189 hall in South St. Paul to learn more about the new bill, which has bipartisan support.

“This is not a bailout,” Save Our Pensions co-chair Jeff Brooks told fellow retirees. “This is essentially a refinancing plan.”

The bill is named after the deceased Central States pensioner who led efforts to stop the fund from cutting benefits for 273,000 retirees. The Treasury Department rejected that so-called “rescue strategy” in May 2016, after Save Our Pensions-Minnesota and other grassroots organizations mobilized retirees in opposition to the plan.

Still, the fund claims it will run out of money sometime in the next 10 years, and it’s not the only U.S. multi-employer pension fund in trouble. An analysis by two actuarial consulting firms released earlier this year found 114  funds – covering nearly 1.5 million workers – in critical condition or worse.

The Butch Lewis Act would create a new federal office, funded by the sale of U.S. Treasury bonds, empowered to lend troubled pensions the money they need to remain solvent.

Funds would pay back the low-interest loans over 30 years. In exchange, they would be barred from making risky investments and required to deliver regular progress reports to federal administrators showing their progress in getting back on track.

For those plans needing additional help, the Pension Benefit Guaranty Corporation would be available to make up the difference.

Sen. Amy Klobuchar, in a previously recorded video address to Saturday’s rally, called the bill a “win-win” for retirees and pension plans alike. “No more stalling,” she said. “No more false promises. We need to act now.”

DFL Reps. Rick Nolan and Tim Walz attended the rally and pledged their support as well.

“If this country can’t provide a decent retirement to its people, then what do we stand for?” Walz asked.

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Retirees push lawmakers to stay vigilant for lame-duck attack on pension rights

December 5, 2016 by
Sen. Al Franken and U.S. Rep. Rick Nolan got an earful from retirees after a forum on threats to retirement security in St. Paul Dec. 5.

Sen. Al Franken and U.S. Rep. Rick Nolan got an earful from retirees after a forum on threats to retirement security in St. Paul Dec. 3.

 

Two years ago, Congress opened the door for troubled pension funds to cut retirees’ benefits, after Rep. John Kline slipped the provision into a must-pass bill keeping the federal government open.

Now, with Congress poised to pass a similar stopgap bill, Kline is back with another “pension reform” bill, and it’s just as bad as the 2014 measure – maybe even worse. But this time around, the element of surprise won’t be on Kline’s side.

A forum Saturday morning on Kline’s proposal drew a standing-room-only crowd of more than 200 retirees to the Macalester College chapel in St. Paul. It was the first in a series of public events to keep pension reform off the lame-duck agenda.

Retirees packed the chapel at Macalester College to learn more about potential legislation weakening defined-benefit pensions.

Retirees packed the chapel at Macalester College to learn more about potential legislation weakening defined-benefit pensions.

“We will be listened to,” retired truck driver Bob McNattin, a leader of Save Our Pensions-MN, told the assembled retirees. “They cannot treat us this way.”

[McNattin’s group will take its message directly to Kline this Saturday with a 10 a.m. demonstration outside the congressman’s Burnsville office, at 350 W. Burnsville Pkwy.]

While the Multiemployer Pension Reform Act of 2014 dealt a blow to the rights of retirees in critically underfunded multiemployer plans, Kline’s latest proposal, known in Washington as the “composite bill,” has a much broader reach.

It would allow healthy pension plans to split in two, with a “legacy plan” following the defined-benefit model and a “composite plan” that, pension attorney Ann Curry Thompson told forum-goers, more closely resembles a 401(k). The composite plan would base retirees’ benefits on the performance of its investments and, critically, receive no backing from the federal Pension Benefit Guarantee Corporation.

Allowing employers and pension administrators to divert money from defined-benefit plans and into composite plans would almost certainly increase the number of federally insured funds facing critical shortfalls – and make more retirees vulnerable to benefit cuts made legal by Kline’s 2014 reform bill, Curry Thompson warned.

Bill Moore, president of the Minnesota State Retiree Council, AFL-CIO, said the prevailing attitude in Congress regarding pension reform – that the only solution is to cut benefits earned by working people – is dangerously skewed in employers’ favor.

“A pension is not a legacy,” Moore said. “It is not a gift from our employers… It’s deferred compensation.” Despite retirees’ advancing age, Moore added, “one thing we don’t forget is the hours and days and number of years that we put in to earn our pensions.”

U.S. Rep. Rick Nolan checked a fact with pension attorney Ann Curry Thompson while addressing retirees Dec. 3.

U.S. Rep. Rick Nolan checked a fact with pension attorney Ann Curry Thompson while addressing retirees Dec. 3.

At least three members of Minnesota’s congressional delegation haven’t forgotten either. U.S. Rep. Rick Nolan and Sens. Amy Klobuchar and Al Franken – all DFLers – spoke at the forum Saturday in opposition to Kline’s composite bill.

“Promises made should be kept,” Klobuchar said.

Lawmakers also pledged to remain vigilant for any attempt to sneak the composite bill through the lame-duck Congress.

A day before the forum, Franken sent a letter to leaders of both parties in the House and Senate urging that any pension legislation “be carefully considered and debated openly and honestly, not enacted at the last minute with little debate, few hearings and no opportunity to offer amendments.”

Franken also offered a potential tool for the Pensions Benefit Guarantee Corporation to help struggling pensions, like the Teamsters’ Central States Pension Fund, meet their obligations: closing a tax loophole on carried interest – a provision of the tax code exploited only by “the top one-tenth of the 1 percent,” Franken said.

Regardless of how it happens, Curry Thompson said, Congress can’t afford to let pension funds leave retirees high and dry. The economic fallout of pension failure makes retirees “too big to fail.”

“As politically unpopular as it is, what is really needed is a … public solution,” Curry Thompson said, noting that pensioners spend money, pay taxes and contribute to economic growth. “I’ll call it what it is. You need a bailout.”

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Campaign schools to kick off labor’s 2016 election push

June 20, 2016 by

mnaflcioThe most recent state legislative session was a mess, with lawmakers failing to act to repair Minnesota’s crumbling transportation infrastructure or make jobs-creating investments in transit and public works.

Electing legislators who will put the state’s working families first is a top priority for labor this year, and the St. Paul Regional Labor Federation will kick of Labor 2016 by co-hosting a campaign school July 26 for union members, retirees and other labor supporters.

The free, daylong training, co-hosted by the Minneapolis Regional Labor Federation and the Minnesota AFL-CIO, will take place at the Minnesota Nurses Association headquarters, 345 Randolph Ave., St. Paul. Registration is required and open at www.mnaflcio.org.

A focus of the campaign schools this year, Minnesota AFL-CIO Member Development Director Bethany Winkels said, will be preparing labor volunteers for longer, more nuanced conversations with likely voters.

“That’s one thing really special about this year’s program,” Winkels said. “We know we’re really good at having a lot of conversations (with voters), but it’s about digging a little deeper. We’re going to try to have a more long-form conversation so people can have an opportunity to help individuals make up their minds.”

The campaign school also will cover the landscape of the 2016 elections, with a focus on winning back a working-family majority in the Minnesota House and maintaining a majority in the Senate. Trainers also will preview tightly contested congressional races in the 2nd District, where labor-endorsed Angela Craig is seeking an open seat, and in the 8th District, where Rep. Rick Nolan is labor endorsed for re-election.

“We’ll deconstruct how politics really affects people’s lives, how what happens at the Capitol impacts you in St. Paul or in Willmar or in Albert Lea,” Winkels said.

Campaign schools also will take place in Alexandria, Duluth and Rochester.

For more information, contact Winkels at bwinkels@mnaflcio.org or 320-296-5853.

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Labor urges Congress to pump the brakes on fast track

February 23, 2015 by
U.S. Reps. Keith Ellison and Rick Nolan host a field hearing on trade at Richfield City Hall.

U.S. Reps. Keith Ellison and Rick Nolan host a field hearing on trade at Richfield City Hall.

Unions are joining a national day of action to stop fast track March 4, and two members of Congress from Minnesota got an earful as to why last week at a field hearing in Richfield.

DFL Reps. Keith Ellison and Rick Nolan heard testimony from trade experts, union leaders, business owners and advocates for family farmers, who passionately exhorted the representatives to resist President Obama’s push for fast-track authority to enter trade agreements like the Trans Pacific Partnership.

The Obama administration, looking for ever-elusive common ground with Republicans who took over Congress this year, has moved fast track and the TPP to the top of its agenda. And the president has plenty of powerful allies in that effort, Nolan warned.

“Not only the administration, but the multinational (corporations) are putting a full-court press on this thing,” the 8th District Congressman said. “Every member is getting collared and called and pushed and urged.”

Ellison wryly noted that White House representatives reached out to him as he was leaving Washington to return to the 5th District, letting him know they were aware of the field hearing – and less than pleased with it.

But testimony at the hearing raised several concerns with fast track and the TPP, a looming NAFTA-style trade agreement among 12 nations on both sides of the Pacific Ocean.

An undemocratic notion

By passing fast track, also known as “trade promotion authority,” Congress would limit its own ability to influence trade policy, forcing members to take an up-or-down votes on 1,000-page trade agreements like TPP without offering amendments.

“That’s clearly an abdication of responsibility on the part of the Congress of the United States,” Nolan said.

Worse, members of Congress are severely limited in their ability to monitor or influence the TPP negotiations, Nolan added. Draft agreements and transcripts of the talks are shielded from the media.

“We’re not allowed to even sit in on the negotiations,” Nolan said. “Now, finally, they’re saying they’ll let us look at some of the transcripts, but all the names and all the essential elements are eliminated. It’s kind of like reading the newspaper with a third of every article being eliminated. So it’s not really time very well spent.”

Machinists union representative Rick Ryan (R) testified before a field hearing on fast track and the Trans Pacific Partnership last month. Ryan appeared on a panel with CWA Minnesota State Council President Mona Meyer and Bob Ryan of the United Steelworkers.

Machinists union representative Rick Ryan (R) testifies before a field hearing on fast track and the Trans Pacific Partnership. Ryan appeared on a panel with CWA Minnesota State Council President Mona Meyer and Bob Ryan of the United Steelworkers.

Profits over people

Leaked drafts of the TPP hint at why Obama’s trade negotiators and hundreds of cleared “advisors” – most of whom represent multinational corporations – might not want the public to see their proposals. Like NAFTA and other free-trade agreements of the last 20 years, TPP appears to give corporations more power over the global economy.

These multinationals have dictated U.S. trade policies at the expense of middle-class wages and jobs for too long, said Mona Meyer, president of the Communications Workers of America’s Minnesota State Council. Look no further than the annual trade deficit of $476 billion.

“The promoters of TPP are again promising job gains,” Meyer said. “But we can do the math, and any job growth with be dwarfed by the flood of jobs that go offshore.”

Trade agreements put manufacturing jobs, in particular, at risk. About 6 million U.S. manufacturing jobs and 60,000 factories have been lost since 2001.

Nilfisk, a company that manufactures industrial floor-cleaning equipment, employed 500 members of the Machinists union at a facility in Plymouth before NAFTA passed. After several rounds of outsourcing, Machinists District 77 representative Rick Ryan said, about 70 workers are left at the plant.

But Ryan warned the TPP goes beyond tariffs and trade.

‘Why are we not at the table?’

“It will affect all sectors of our economy, our courts, our intellectual property rights, labor standards, environmental standards and more – done at the bidding of the world’s largest multinational corporations, further benefiting the 0.1 percent at the expense of the 99.9 percent worldwide,” Ryan said.

How? Dave Levine, CEO of the American Sustainable Business Council, said TPP language could empower corporations to sue local governments that pass “buy local” laws – a school district looking to serve food from area farmers at lunch, for example. It’s one reason the council’s 225,000 member companies oppose fast track and the TPP.

“None of them got a call to be at the table,” he said. “If it’s good for business, why are we not at the table to bring our interests to the proceedings?”

Josh Wise, director of the Minnesota Fair Trade Coalition, noted that the TPP and other trade agreements create extrajudicial trade tribunals, presided over by judges with deep ties to multinationals, that have jurisdiction over local courts.

Lone Pine Resources, an energy company suing the government of Quebec over its ban on fracking, maintains its headquarters outside Canada “for the sole purpose of being able to challenge the fracking ban via the trade court rather than the judicial system,” Wise said.

Fair trade, not free trade

Ellison and Nolan entered the hearing already opposed to fast track and the TPP. Both insisted they were not against trade, but favored trade policies that strengthen labor and human rights, protect U.S. families us from unsafe imports and promote the export of goods instead of jobs.

“We built this economy with rules and regulations on health and safety, wages and benefits,” Nolan said. “To say that we’re going to allow anyone and everyone to come in here and dump their products on us without any countervailing measures … is to really destroy the essence of who we are and what we’re all about.”

Ellison added, “I believe American workers can compete with any workers in the world” if given a level playing field.

“I know that you guys will fight for democracy,” Wise told the members of Congress. “I wish you the best of luck in convincing your colleagues to do the same.”

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Bill Moore: To act together, we’ve got to get together

December 17, 2014 by
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Bill Moore is president of the Minnesota State Retiree Council, AFL-CIO.

“GOP tightens grip on white working class,” read the headline on an Oct. 31 Wall Street Journal story datelined Aitkin, Minn. The story reported how Democrats have been losing their hold on rural Congressional districts with largely white populations, where incomes lag the national average and college graduates are relatively sparse. The authors quoted men breakfasting at Aitkin’s Birchwood Café who said they formerly were Democrats, but planned to vote for Stewart Mills over Rep. Rick Nolan in the 8th District Congressional election.

Rick Nolan won that election. But he didn’t win in House District 10B, and labor champion from the Aitkin area, Rep. Joe Radinovich, lost his seat. So the question remains: Why does the GOP, which opposes affordable universal health care and livable wages and would prefer privatization of Social Security and Medicare have any kind of grip at all on working class voters? And why did so many working people in Greater Minnesota – not just around Aitkin – vote against their own economic interests, or not vote at all?

It wasn’t for lack of communication with labor voters. By all accounts, the Minnesota Labor 2014 program generated more home visits, phone calls, mail and worksite conversations than ever before. And the DFL voter communication program was as strong as it’s ever been. But smaller memberships in rural districts mean that, however vigorous the labor effort, there may not be enough union voters to turn the tide. Same for the DFL.

But there’s more to the story. I don’t think enough people, whether in Greater Minnesota, the suburbs or the cities, belong to organizations where they think and act together on issues of common concern relating to their economic life.

Many people belong to congregations where they reflect, pray and act on matters of faith – more often than not, relating to sexuality and marriage. NRA chapters bring folks together around their Second Amendment rights, and Legion and VFW posts focus on veterans’ issues. But there are nowhere near as many citizen organizations addressing bread-and-butter economic issues. Our unions do that, drawing workers together to deliberate, decide and act to make life better at work and in their communities. But if you don’t belong to a labor (or farmers’) union, where do you reflect and act together with co-workers and neighbors to assure a just reward for work, workplace safety, good health care and education, a healthy environment, decent transportation and a secure retirement for all? And where do you get accurate information about these and other matters?

Many complain about negative TV, radio and newspaper ads and the deluge of viciously false mailers in some districts. But, if people aren’t receiving more accurate information somewhere else, on a regular basis – not just during campaign season – it’s easy to see how they could be swayed or, at least, confused or discouraged from voting.

On the radio the other day, Sister Simone Campbell, one of the Nuns on the Bus, described recent conversations she had with people who were confused and discouraged by negative political advertising, felt alienated from politicians and weren’t going to vote.

“It’s that alienation, separation, division that’s driving people apart,” she said. “We’ve gotta get into community so we’re connected to each other; so that there is an antidote from all of the money, all of the negativity, all of the ferocious stuff.”

Getting into community and connecting with each other: That’s called organizing. As union members and retirees, helping workers connect in unions is our focus. But, where that’s not timely or possible right now, we need to help form other kinds of democratic citizen organizations where working people can join together to learn and act to free themselves from the GOP grip.

– Bill Moore is president of the Minnesota State Retiree Council, AFL-CIO. This column originally appeared in the council’s newsletter, “The Gopher Retiree.”

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St. Paul Regional Labor Federation: Election results are cause for celebration

November 29, 2012 by

[Bobby Kasper, president of the 50,000-member St. Paul Regional Labor Federation, AFL-CIO, wrote this Labor Voices column with Kera Peterson and Peter Polga-Hecimovich, political organizers for the Federation.]

The St. Paul Regional Labor Federation has a lot to be proud of from the November elections. With our union brothers and sisters from across the state we helped beat back a destructive Voter ID Amendment, the anti-gay marriage amendment and, most critically, swung control of the Legislature to a pro-labor majority.

In our federation alone we managed to swing an incredible nine legislative seats from anti-union candidates to pro-Labor candidates, including six in Dakota County and two in Washington County. Also victorious was Rick Nolan, our 8th Congressional District candidate. With these victories and others across Minnesota we sent a powerful message to those at the Capitol that unions are a force to be reckoned with and, when awakened, we will use our strength to fight with all of our might for those causes in which we believe.

During the last legislative session the Republicans controlled both houses of the Legislature and we hoped, despite our better instincts, that they would hold true to their promises of a jobs-centered legislative session. Instead of enjoying job creation, however, we found ourselves fighting a possible Right to Work amendment, devastating changes in prevailing wages, and a host of social issues the Republicans put forward.

We knew, given how close we were to seeing that Right to Work Amendment on the ballot this fall, that without a legislative majority it was only a matter of time before it came up again. So the St. Paul RLF got out early, with a series of candidate meet-and-greets in all four of our counties in June, introducing our legislative and congressional candidates to the unions. This crop of candidates, we knew, was a powerful group who would be our allies if elected.

In true form, our affiliate unions came through with volunteers, resources and release staff for the Federation, and we were able to start on the ground early, with calls and door knocks to targeted households happening as early as July. Between our volunteers and release staff, we began a mission that culminated with over 1,000 volunteer shifts.  This involved more than 20,000 individual doors knocked and tens of thousands of calls more to our targeted universe of union members.

Make no mistake about it; those phone calls and door knocks helped push our endorsed candidates over the line. This was the work that you all did.  We pushed hard and because of you we were blessed with a historic victory.

Sisters and Brothers, we should all be proud. For the first time in 22 years we have a legislative majority and governor who, after two years, we can finally bring out of the net to help us go on the offensive. We have this because of the hard work of our volunteers and release staff and the resources that all of our unions threw into this fight.

Now, as we approach this new legislative session, we can finally put a focus on the issues that we all know should reign supreme. It is time to put our friends and families back to work. Our efforts cannot be finished. We must keep pushing to hold all of our elected officials accountable, and we must turn our seasonal campaign into a year-around one.

With the election over, we look hope you join us in the new year as we let our new legislature know that the unions are here, and we are here to stay.

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