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)