Secret Ballot Watch

The debate over the Employee Free Choice Act is about many things. It’s about a worker’s right to a secret ballot, of course, as well as jobs.

But it’s also about forced government contracts, a “disastrous” part of the bill that has taken center stage now that there are reports its “card check” provision could be removed.  

There are several reasons to oppose binding arbitration, but Investor’s Business Daily uncovers a different side to the debate, namely the ailing pension funds of the act’s biggest supporters. IBD follows the money here:  

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“Businesses fear arbitration could be used to require them to take up the slack in underfunded pension plans. In effect, companies could have to pay the pensions of people who never worked for them. …

“How weak are union-managed pension funds? The Labor Department today lists 96 in ‘critical status,’ meaning they have less than 65% of the assets needed to cover present and projected liabilities.

“Another 127 are listed as ‘endangered,’ with 65% to 80% of the necessary assets.

“That is based on data from last summer, before the market's September meltdown. The Labor Department's list is set to be updated later this summer.

“Cynthia Eagan, spokeswoman for the Central New York Painters and Allied Trades Pension Plan, said they had only enough assets to cover 54% of their liabilities.

“‘That was based on last year's numbers. This year's numbers are even worse,’ Eagan told IBD. Asked when the fund may be able to get out of critical status, she replied: ‘We're not able to say right now.’”

Higgins, “Union Pension Woes Help Spur Push For Forced Arbitration,” Investor’s Business Daily, 07.20.09 

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The continued underfunding of union pension plans is a major problem. But pushing a bill that could kill jobs in an economy already burdened with a 9.5 percent unemployment rate is certainly not the solution.

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