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Pensions Aren’t the Problem for State Budgets

January 27th, 2012 No comments

This is a crosspost by AFSCME President Lee Saunders from Huffington Post.

Rupert Murdoch’s Wall Street Journal, the Pravda of the 1 percent, is at it again, continuing its push to gut the retirement security of millions of middle class workers across the country while enriching the Wall Street moneymen who just three years ago took our economy over the cliff.

Virtually everyone agrees that our nation faces a retirement security crisis, but the Journal last week published a shameful op-ed calling for the elimination of pensions for nurses, firefighters, corrections officers and others who still have them. Having punched private-sector workers retirement in the gut, these folks won’t be happy until the whole concept of a secure retirement for working Americans is a thing of the past.

The typical AFSCME member — men and women who plow our streets, care for the sick, protect our children, clean our buildings and keep our communities safe — receives a pension of approximately $19,000 a year after a career of public service. The employees have earned and paid for these pensions. Employee contribution rates commonly amount to 3 percent to 10 percent of their paychecks. These contributions, combined with investment earnings, usually account for 75 percent or more of all pension benefit funding.

The economy’s collapse in 2008-2009 took its toll on everyone’s retirement savings. But our nation’s public pension systems, which were fully funded before the crash, continue their robust recovery earning their highest returns in decades in fiscal year 2011. Pensions continue to provide irreplaceable retirement security to millions of Americans who provide public services. Yet, the corporate-backed
opponents of pensions are creating a myth that the system is falling apart and that state and local governments are going bankrupt because of the $19,000 pensions sanitation workers are earning.

That is simply not true. According to the Center for Economic and Policy Research, the size of the projected state and local government pension funding shortfalls is manageable. In most states, the total shortfall for the pension funds is less than 0.2 percent of projected gross state product during the next 30 years. Even in states with the largest shortfalls, the gap is less than 0.5 percent of projected state product during that period. And, because pension payments are made over generations of workers,
funding can remain stable over long periods, and funding challenges managed over decade long periods, despite short-term economic setbacks. These are facts that the opponents of public pensions simply ignore, as they seek to punish workers for Wall Street’s psychopathic behavior.

Read the full post here.

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Poverty Underlies Education System’s Shortcomings

January 27th, 2012 No comments

Here’s a letter to the editor in The Hill by Diann Woodard, president of the School Administrators (AFSA), the only national education union representing principals, assistant principals and school administrators.

The failure of our education system lies not within the walls of the public schools that serve children in crisis, but with the policymakers and policies in place that ignore the fundamental causes of low student achievement: unfair funding formulas, poverty and unproven education policies (“For America’s children, education outlook grows only dimmer,” Jan. 23, by Juan Williams).

Families are increasingly falling into poverty, experiencing a lack of housing and unable to provide adequate health care and nutrition for their children. These children need increased services, yet often do not receive them because of budget cuts, bureaucratic hurdles and gross inequities in state and local funding formulas.

Public schools welcome these children, for our doors are open to all. We do not hand-select the brightest, the ones with involved parents, or the students who will make us look good on half-hour media specials. Their time at school might provide their only stable environment, and we provide it with only a fraction of resources afforded to more affluent districts and private schools.

No evidence exists that suggests closing schools is a good thing, and a recent study conducted by Julian Betts and Richard Atkinson concluded that there is little research to suggest that charter and private schools are better than public ones, and that the limited data that are available are not enough to draw accurate conclusions about their long-term effectiveness.

Education makes up less than 3 percent of the federal budget. If a nation’s priorities are reflected in its budget, then to invest so little in education demonstrates we don’t understand or appreciate its value. We need an increased investment with a focus on quality, not just on quantity.

States and districts should be required to conduct a needs analysis and target resources accordingly. Principals need meaningful training, increased resources and support. All schools should be granted immediate relief from No Child Left Behind’s flawed adequate yearly progress, and in a reauthorized Elementary and Secondary Education Act, schools that serve communities with the greatest needs and challenges should be given the greatest support. 

School children don’t vote—perhaps that is why we have not yet seen a genuine, concerted effort by our elected officials to rebuild and strengthen our public education system.

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Rep. Miller Asks Justice Dept. for Investigation of Possible Coercion of NLRB Member

January 27th, 2012 No comments

Rep. George Miller (D-Calif.), the senior Democrat on the House Education and the Workforce Committee, asked the Department of Justice to look into evidence uncovered by a National Labor Relations Board Inspector General investigation that found board member Brian Hayes engaged in employment discussions with a law firm with business before the agency. Miller wrote:

The board plays a critical role in adjudicating and administering the rights of employees and employers under our nation’s labor law and Board members must be free of coercion and undue influence when executing their responsibilities.

The NLRB Inspector General investigation found that Hayes and an attorney with Morgan Lewis had a number of conversations beginning in late September or early October about potential employment if he were to resign his position on the NLRB. As part of those conversations, an attorney with the firm, according to Hayes, stated that “if you ever decide to resign we’d like to talk to you.”

More here.

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Overall Union Membership Notches Up from 2010 to 2011

January 27th, 2012 No comments

Overall union membership increased by 49,000 from 2010 to 2011, including 15,000 new 16- to 24-year-old members, according to new U.S. Bureau of Labor Statistics data out this morning. An increase of 110,000 in the private sector was partially offset by a decline of  61,000 in the public sector, making the rate of union membership essentially unchanged at 11.8 percent, with some 14.8 million U.S. workers union members.

Public-sector density increased from 36.2 percent to 37 percent though November 2011. Private-sector union membership remains at 6.9 percent. The largest increases in union membership were in construction, health care services, retail trade, primary metals and fabricated metal products, hospitals, transportation and warehousing.

Bottom line, says AFL-CIO President Richard Trumka:

Despite an unprecedented volley of partisan political attacks on workers’ rights and the continuing insecurity of our economic crisis, union membership increased slightly last year. Working men and women want to come together and to improve their lives.

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282 Cablevision Workers Join CWA

January 27th, 2012 No comments

Yesterday, 282 Cablevision technicians and dispatchers in Brooklyn voted to join the Communications Workers of America (CWA) Local 1109 in a union election administered by the National Labor Relations Board, overcoming a vigorous anti-union campaign led by Cablevision. They are the first Cablevision workers to join a union. Cable TV is an overwhelmingly nonunion industry while the traditional telecommunications industry remains highly unionized.

“I’ve waited 13 years for this,” said Cablevision technician Clarence Adams. “United, as members of Communications Workers of America, we now have the power to negotiate a fair contract that will give us the dignity and respect on the job we deserve.”

Cablevision workers are currently subject to arbitrary discipline and favoritism by managers, their health care coverage is inadequate, their workload is unreasonable and they have insufficient 401(k) retirement plans. Cablevision workers also make at least one-third less than Verizon workers, who are represented by CWA.

“This is about my son, his future, and the future of the Cablevision 99%,” said Cablevision technician Marlon Gayle. “We can now negotiate with management for a safer work environment, better health care, a more secure retirement and a salary that will allow us to support our families.”

Cablevision leads the Cable TV industry in “average monthly revenue per subscriber of $153.97.” And outgoing COO Tom Rutledge made $28 million in 2010, about twice the combined pay of the 282 technicians in Brooklyn.  Rutledge’s $28 million is more than 600 times the average technician’s pay.  Despite $361 million in profits, Cablevision paid no federal income taxes in 2010.

As soon as Cablevision’s management learned of the organizing drive, they began a campaign of harassment and intimidation, including forcing workers to attend high-pressure, anti-union “captive audience” meetings, and pressuring workers to oppose the union in one-on-one meetings with managers.

“Over the past few months these courageous workers withstood a blistering assault on their right to form a union,” said Chris Shelton, CWA District One vice president. “Cablevision truly took the low road by pressuring workers with endless amounts of misinformation, but these workers—backed by countless community leaders and elected officials—stood strong. Now we will bargain collectively for a contract that gives the Cablevision 99% equity and dignity on the job.”

The vote could signal a shift in the telecommunications industry. Only 2 percent to 4 percent of eligible cable TV workers are members of a union, compared to 90 percent in the traditional telecommunications industry. Despite the recent news coverage on the increasing skill levels required of cable workers, their wages lag far behind those of traditional telecom workers.

“Cablevision’s owners—the Dolans—have successfully negotiated contracts with unions at Radio City Music Hall and Madison Square Garden,” said Local 1109 Executive Vice President Chris Calabrese. “We look forward to negotiating with them a fair contract for Cablevision workers.” 

Read more here.

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Labor, Management Partner to Create Jobs in Wash. State

January 27th, 2012 No comments
 

Here’s a bipartisan solution: Labor and management working together to create jobs.

In Washington State, where construction workers are experiencing up to 50 percent unemployment, a labor-management coalition is working to push a jobs bill through the state legislature to alleviate the jobs crisis and rebuild infrastructure.

The Washington State Labor Council, the Washington State Building and Construction Trades Council, the Association of General Contractors are sponsoring the Infrastructure Jobs Bond legislation and have released lists identifying which capital construction work around the state could be funded through the legislation.

Says Dave Myers, executive secretary of Washington State Building and Construction Trades Council:

These jobs will become a reality right away for thousands of laid off constructions workers and returning veterans. The projects will also be targeted toward key sectors of economic development including construction of aerospace training facilities and college research facilities, both of which will spin off other economic development.

Read more here.

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