Politicians and media pundits have joined the conservative effort to demonize unions, pensions, and public employees. In fact, if you landed on the planet today, you would think that the global financial meltdown was caused by greedy unionized public employees. Instead of blaming the super-wealthy for their huge gambling losses, there is a growing consensus claiming that the working poor and the downsized middle class are the cause of all of our problems.

In the case of pensions for public employees, the popular sentiment is that these benefits will starve local and state governments, and so they should be eliminated or at least severely reduced. Leading the media frenzy against pensions is the misunderstanding of the cause and effects of unfunded pension liabilities. What no one seems to be saying is that due to the unethical and possibly illegal activities of Wall Street, most pension funds lost close to a third of their value in 2007 and 2008. While the banks and financial institutions were bailed out, no relief came to these pension funds, and new accounting rules forced public pensions to declare all of their present and future pension liabilities. However, we should remember that these liabilities do not have to be paid for today; in, fact, the pension liabilities cover the present and future retirement costs of all people in the system.

Since reporters and the general public do not understand how pensions work, they are easily scared by what looks to be giant deficits. Furthermore, employers are using these huge numbers to get employees to accept reduced benefits, and the side effect of this scare tactic is that the public has turned on pensions, public employees, and unions. Unintentionally, the media, public employers, and the general public are playing into the hands of the wealthiest people in America who do not want to pay middle-class workers a decent wage with acceptable benefits.

Click here to read the rest of the article

March 23, 2010

(CARLISLE, Pa.) – Teamster truck drivers were the first to hear Sen. Bob Casey’s plan to stabilize multi-employer pension plans and save thousands of jobs.

They were on hand March 22 at the YRCW loading dock in Carlisle, Penn., where Casey announced that he would file the “Create Jobs and Save Benefits Act of 2010.”

The bill is extremely important to the Teamsters, who have been working with Sen. Casey on it. It’s similar to a House bill that the Teamsters already support, The Preserve Benefits and Jobs Act.

That bill was introduced in the House of Representatives by Reps. Earl Pomeroy, D-N.D., and Pat Tiberi, R-Ohio. Teamsters have sent thousands of e-mails to Congress urging their elected representative to pass the Pomeroy-Tiberi bill.

Casey, a Pennsylvania Democrat, explained that his legislation is important to protecting pensions and saving jobs. It’s also important to keep promises made to retirees, he said.

“We have to fulfill our obligations,” Casey said. “Pensions are a basic commitment to workers and their families that they will be there for them.”

The bill will strengthen the trucking and other industries. It will change the pension funding rules so employers won’t have to make payments that could force them into bankruptcy. Employers can use their savings to hire and retain workers.

As part of the event to announce the filing of the legislation, Teamsters Local 776 shop steward Dave Wolf thanked Sen. Casey on behalf of General President Jim Hoffa and General Secretary-Treasurer Tom Keegel.

Wolf pointed out that working people weren’t the ones who caused the stock market to crash, which weakened pensions.

“It was fraud and corruption on Wall Street that caused the crash,” Wolf said. “Now working people are losing their jobs and their pensions because of it.

“The government says it has to bail out the banks when they get into trouble because they’re “systemically important.”

“Well, we’re the people who move the goods and pay the mortgages and support our communities. I think we’re “systemically important” too.

“We’re not asking for trillions of dollars like the banks get. We’re just asking for temporary relief for pensions that lost money in the stock market crash.”

The International Brotherhood of Teamsters was founded in 1903 and represents more than 1.4 million hardworking men and women in the United States, Canada and Puerto Rico.