In A Pinch, In A Pension
Monday, October 19th, 2009 by adminThe Labor Press is reporting:
For union pension plans, last year’s stock market meltdown could mean next year’s benefit cuts and/or steep increases in employer contributions — if Congress doesn’t change pension funding rules. Local pension trustees are even saying privately that some union pension plans could fail and be taken over by the Pension Benefit Guaranty Corporation if they’re not given more time to make up for investment losses.
Remember: the Employee Free Choice Act’s ridiculous provision of “binding interest arbitration” could mean that a newly unionized employer is forced into funding one of these failing pension plans. And current pension law’s “last man standing” rule means that newly unionized employer automatically becomes liable for all of the plan’s liabilities, even for employees that are not his.
Be sure to read how EFCA could kill one man’s company, and yours too and learn more about the threat of failing union pensions and EFCA.
