With American families deeply
worried about their lost savings and many defined benefit pension plans facing significant shortfalls, new
questions are arising about how card check might be used to mask a union pension underfunding crisis.
An op-ed published by The Huffington Post explains—
“But the damaging effects [of card check] go well beyond the high-tech sector. It would have a devastating impact on workers from all industries by affecting retirement plans.
“A detailed analysis last year by the Hudson Institute, a nonpartisan think tank, found that union-negotiated retirement plans were not as sound as those provided by private companies to non-union employees. Nearly all of the major plans were behind on payments, and overall, the pension plans of union officers were better funded than those of rank-and-file workers.
“The Hudson study, written by a former chief economist at the Department of Labor, went on to find that 21 of the largest multi-employer union pension funds had only 67.7 percent of the reserves needed to meet their obligations, seven were in critical condition, and not one was fully funded. In this group of 21 are some the most vocal, deep-pocketed supporters of card check, including the SEIU and Unite Here.
“Perhaps that explains the urgency of imposing card check on U.S. workers. It would be a way for union officials to tap a new funding source to meet federal requirements that they fully fund pension funds by 2011. A fresh crop of unionized employers would subsidize past union pension plan mismanagement and, at the same time, fund the demand for defined benefits from the latest union members. …
“Is the true union motivation behind card check to get a host of new employers into the pension pool with the cash to correct the problems of past union mismanagement? If so, the legislation, as it is written, allows union pension fund managers to carry on their current course without any additional government oversight or reasons for increased prudence.
“If this is the union strategy, politicians and the workers whose companies may be unionized don't deserve to be fooled. And these concerns alone reinforce why workers must retain their right to a private ballot to decide unionization - union organizers intimidating workers to sign cards or petitions are unlikely to disclose that they have teetering pension plans.”
Shapiro, “Card Check Is Not The Solution for Pension Mismanagement,” The Huffington Post, 05.13.09
Is card check part of a ploy to get more of today’s workers to foot the bill for risky pension promises made by unions?
We’ve said it before, and we’ll say it again: Rank-and-file union members’ retirement security must be protected. It’s worth asking what might be promised regarding pensions under a card check scheme, and what would actually be delivered.
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