WHAT'S HAPPENING TO UNION PENSIONS?

According to an editorial in a recent edition of The Wall Street Journal, a number of union pensions are in the red. That bad news must be causing unionized workers a great deal of anxiety, especially during the current economic recession, when so many workers are losing their jobs.

The SEIU’s National Industry Pension Fund, covering more than 100,000 members, is now in “critical status,” which means that it lacks the necessary capital to pay 100% of benefits. Federal government officials have stated that the Fund has only 74.4% of the necessary assets to meet its obligation to pay those benefits.

And the list goes on: Thirteen plans operated by the Teamsters have a mere 59.3%. The Journal states that seven locals at the United Brotherhood of Carpenters …are at 67%.

While all of that is bad news for rank and file members of those and other similarly afflicted unions, union officers have nothing to worry about. The pension plan for officers and employees at the SEIU, for example, was funded at 102.2% as of 2007. In addition, the officers and employees get an annual 3% cost of living increase, while its members do not. There are many such disparities.

The dramatic reduction in union pension funds is just one reason why unions are aggressively attempting to organize new members and collect their dues. And it is why the unions are putting pressure on congress to pass the Employee Free Choice Act as soon as possible.

Increased union membership will mean increased labor costs, increased unemployment, and a worsening recession. But the pensions for union officers will, no doubt, remain intact.