Building Trades News

Construction Pensions Lead the Way, Under Attack by Business

By Richard Slawson, Executive-Secretary

Of all of the pension plans, retirement systems and savings plans around the world, craft union pension plans have continuously led the way in defining the best. But today, business bosses and some corporate-elite politicians are doing everything they can to destroy any kind of retirement promise or guarantee. Can’t believe that elected officials would do that? Just track the recent actions by our Congress and you can see that the leadership is acting on behalf of the rich and famous instead of workers. Two years ago Congress passed legislation that allowed revisions of the federal pension laws that gave corporate bosses with company-controlled retirement plans the ability to change growth percentages and to alter other plan benefits. At the same time, when labor/management trust funds, our union plans, needed similar help to adjust to funding requirements and changing investment returns, they were turned down flat. Even in this session of Congress new legislation to allow the changes isn’t being supported. This is obviously an attempt to undermine Union defined benefit plans, while letting the corporate elites siphon off the pension dollars of unrepresented employees. This is the same situation that existed with World-Com, Continental Airlines and ENRON, where the bosses destroyed these companies after they had absconded with the cash. The most blatant example, however, of the rich, corporate bosses’ claim on everything you own, is their push to literally destroy Social Security. The last bastion of security for Americans who have worked all their lives, paid into the system, and followed the rules is Social Security. Yet these elitist elected officials want to eliminate it. Don’t be fooled into thinking that these “holier than thou” Republicans, who constantly use religious issues to obscure their real agenda, care if you have a retirement or not. The only thing these corporate-controlled, bought and paid for politicians are interested in is to eliminate the company share of the Social Security contribution. It is only the overwhelming objections of the American people, through their Unions and retired persons’ organizations that stopped the raid on our national retirement plan. But the attacks continue. A Boston College study out this month reports that 43% of households in the United States will fall short of the 65 - 85% of their workplace incomes that they need to have a secure retirement. But, the “at risk” households climb to 66% if workers retire, or have to retire, at age 63 rather than 65 or older. This illustrates the slow, steady erosion of the middle class that has been underway over the last 30 years and accelerated over the last six years. Who would have imagined that the U.S. President and Congress would stand by and allow Americans to face an uncertain future? Yet, because of the undermining of Unions, gutting of wage levels in response to the global economy, and Congress and the White House supporting the massive transfer of the of the wealth of the country to the few at the top, we are watching the return of the conditions that existed in 1929 and led to the bankruptcy of half the nation. The Boston College Study suggests that if Americans aren’t going to have enough to retire with to ensure a decent level of income, then they need to work longer, save more and if they own a home, use “reverse mortgages” to make up the difference. The research is proof of the value of Labor Unions. We need to do more in organizing grassroots opposition to any further erosion of Social Security or defined benefits pension plans so that we can rebuild what has been lost. If either the Democrats or the Republicans want our vote they must establish policies that will build a larger middle class and provide every hard working American with a way to retire with a decent standard of living. Its not too late. However, unless we tell our elected officials that we won’t stand for further erosions of the middle class we will continue to see the expansion of the wealth divide that has grown too large in America already. Writing letters, making phone calls or meeting with your Congressman or Senator, to tell them you want a good retirement income, is a good beginning.

 

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