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About Northwest labor press. (Portland , Ore.) 1987-current | View Entire Issue (Dec. 19, 2014)
Inside MEETING NOTICES See Page 12 Volume 115 Number 24 December 19, 2014 Portland, Oregon Congress passes major change to law on union pensions ‘Presents from Partners’ holiday party a joyful event Labor’s Community Service Agency and the Northwest Oregon Labor Council held their annual “Presents from Partners” holiday party for children of out-of-work union members Dec. 13 at the Sheet Metal Workers Local 16/SMACNA Training Center in Northeast Portland. This year, the International Longshore and Warehouse Union Credit Union, ILWU Locals 8, 40 and 92, and the Inland Boatmen’s Union donated 80 bikes. In the photo above, two wide-eyed youngsters are ecstatic as they are ushered in to choose from a roomful of two-wheelers. (For more photos of the party, turn to Page 16.) University of Oregon grad students reach settlement after 8-day strike EUGENE — University of Oregon grad students ended their first-ever strike Dec. 10 after the university in- creased its wage offer and improved the terms of a new medical and pater- nity leave fund. Strikers will not have their pay docked for the eight days they were out on the picket line. The tentative agreement was hashed out in a marathon 22-hour bargaining session that went through the night. Members were expected to vote to rat- ify the tentative agreement after this is- sue went to press. Graduate Teaching Fellows Feder- ation (GTFF) Local 3544, an affiliate of the American Federation of Teach- ers, represents about 1,400 UO gradu- ate students who receive stipends to teach undergraduate classes. The strike began Dec. 2 — a week before final exams. Before the strike, UO was propos- ing annual raises of 5 and 4 percent over the two-year union contract, and the union was proposing 5.5 percent each year. But the two sides settled on 5 percent a year. That’s above the likely rate of inflation, though less than what the union said is necessary to live in high-cost Eugene. Graduate teach- ing fellows work a maximum of half- time for a minimum pay of $4,090 to $4,878 per academic quarter. The first year’s raise will be retroactive to Sept. 15, when the previous contract expired. The other issue of contention was paid leave for a serious illness or the birth or adoption of a child. Eugene City Council passed a paid sick leave ordinance earlier this year, but it does- n’t apply to UO workers because they’re considered employees of the state. GTFF wanted a guaranteed two- week paid leave benefit in the contract, but in the end agreed to a memoran- dum of understanding committing UO to create a hardship fund. The fund will provide up to $1,500 for a grad student who had a new child and up to $1,000 for a serious medical event. It will be open to all graduate students, not just those who teach classes and belong to the union. The university committed to (Turn to Page 7) ble than single-employer pensions, By DON McINTOSH which fail when the single company Associate Editor Severely underfunded union pen- fails. But today, many multi-employer sion plans will be allowed to reduce plans are in crisis, thanks to stock mar- current retiree benefits in order to avoid ket downturns and declining employ- future insolvency, under a last-minute ment in union industries. Like single amendment attached to the $1.1 trillion employer pension plans, multi-em- federal government appropriations bill ployer pensions are insured through the Pension Benefit Guaranty Corporation, known as the “CRomnibus.” The amendment was sponsored by but PBGC pays out only a fraction of an unlikely duo: anti-union House Ed- promised benefits when a plan runs out ucation and Workforce Committee of money, and PBGC is itself in danger chair John Kline (R-Minn.), and pro- of insolvency. Amendment 1 union former commit- would shore up PBGC tee chair George Miller ‘Right now, if we by doubling (D-Calif.), who was do nothing, those finances the per-participant pre- serving out his final mium paid by multi- days after 20 years in very same retirees employer pension office. The 161-page plans to $26 per per- amendment came un- that you’re son per year. der the unwieldy name worried about It would also allow of Amendment 1 to H severely underfunded Res 776 (which itself have a very high plans (those expected governed consideration of HR 83). The pro- likelihood of losing to run out of money in 20 years or less) to re- posal had support from all of their duce benefits for exist- a number of unions, ing retirees — if that and opposition from benefits, or going would prevent the plan others. It was drawn up from becoming insol- by committee staff to the PBGC and vent. Plan trustees based for the most part getting a would not be allowed on “Solutions, Not to cut benefits for dis- Bailouts” — a pro- maximum benefit retirees or re- posal introduced last of $12,000 a year.’ abled tirees 80 years or older. year by the National And the cuts for re- Coordinating Commit- tee for Multiemployer Plans (NC- tirees ages 75 to 79 would be less than CMP), a group representing union ben- younger retirees. Benefits could not be cut to a level below 110 percent of efit plans. Amendment 1 covers multi-em- PBGC’s minimum benefit, but that ployer pension plans — plans that could still be a pretty hefty cut. And the unions jointly sponsor with employer consequences could be widespread: Up groups, overseen 50-50 by trustees ap- to 3 million people are in plans that are pointed by the union and employers. regarded as severely underfunded. One part of Amendment 1 came at Employers contribute under the terms of collective bargaining agreements, Miller’s insistence, and was not part of and the funds are invested so that the the Solutions Not Bailouts proposal: In plans have enough to pay guaranteed plans with more than 10,000 partici- monthly benefits when employees re- pants (retirees and active workers), par- tire. All told, about 10 million people ticipants would have a chance to vote are in multi-employer plans, which are to reject the proposed cuts. But the cuts common in unionized construction, would only be rejected if more than 50 trucking, grocery, and service indus- percent of participants voted against tries. They’re easier for small employ- them, not 50 percent of those voting. ers to join, and they’re much more sta- (turn to Page 19)
