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About Northwest labor press. (Portland , Ore.) 1987-current | View Entire Issue (June 15, 2018)
NORTHWEST LABOR PRESS | June 15, 2018 | PAGE 3 RETIREMENT Western States OPEIU Pension moves to cut benefits Without a 30% pension cut, the fund will be insolvent in 18 years. A union pension plan for office workers is applying to the U.S. Treasury Department for per- mission to cut retiree benefits up to 30 percent in order to halt a slide to insolvency. Portland- based Western States Office and Professional Employees Pension Fund covers 7,400 current and former members of nine Western United States locals of Office and Professional Employees In- ternational Union (OPEIU). They’re mostly clerical staff at labor unions and defunct or no- longer-unionized trucking com- panies. Until 2014, multi-employer pension plans like Western States weren’t allowed to reduce bene- fits for workers who were already retired. But a law passed that year allows pensions to cut retiree benefits to a certain extent if that can prevent insolvency. The law says pension cuts must progres- sively phase out for retirees aged 75 to 80, and benefits can’t be cut at all for those 80 and over. Pension plan participants get to vote on the proposed cuts, but can only stop the cuts if a majority of total participants vote to reject them — not just a majority of those voting. Retiree Evangelyn Huntington calls that outright majority re- quirement a “fraud of the highest order.” Huntington went to work at the Portland headquarters of Consolidated Freightways in 1978 as a mainframe computer operator, and stayed when her di- vision was spun off as CNF Transportation in 1996. In 2003, angry over the role played by OPEIU Local 11’s leader in the Capital Consultants fraud case, she and her co-workers voted to decertify Local 11 and go non- union. That 132-106 vote meant the Western States pension fund lost it’s largest remaining em- ployer, with 257 employees. Once-mighty trucking company Consolidated Freightways had gone bankrupt the year before, ending pension contributions for about 400 union office workers. Western States is typical of the roughly 100 union-sponsored multi-employer pension plans that are currently heading for in- solvency— in that its investments lost value in the 2000 and 2008 financial crashes, but it can’t re- cover from those losses because retirees and former employees greatly outnumber active workers whose employers are making contributions to the plan. Western States today has 11 times as many retirees and vested former workers as current workers. Retirees came to greatly out- number active employees be- cause of a long slow decline in OPEIU membership. Computer- ization reduced the number of of- fice workers needed. Local unions that employed OPEIU members were themselves de- clining in members, and merged and laid off office staff. Office staff at unionized trucking firms were laid off when their firms went out of business, or like CNF, voted to go non-union. In the mid-1980s, Western States had over 500 contributing employers. Today it has 168. Now, its participants are pre- sented with a choice between evils: Painful cuts now, or even more painful cuts in 18 years. Without the cuts, Western States will run out of money by 2036. If Huntington is still around then, she’ll be 87. She plans to vote against the cuts, which for her amount to over $500 a month. She was 61 when she retired. Since then her health has wors- ened and she doesn’t feel she can return to the workforce. “To us that are retired, this guarantee is what we based everything on, and now they’re saying they’re going to take it away,” Huntington said. “What am I going to do? If I get it re- duced now, there goes any little cushion I have if anything goes wrong.” Meanwhile, retired union bookkeeper Christie Gronquist says she plans on voting for the cuts, to avoid having to suffer the bigger cut later. Gronquist, also a member of OPEIU Local 11, took early retirement in 2008 at age 57. After 29 years as book- keeper, first at Machinists District Lodge 24, then United Food and Commercial Workers Local 555, she gets a $1,283 a month pen- sion. That will drop to $1,140 a month under the proposed cuts. [It’s not the full 30 percent be- cause of a rule that cuts can’t go below 110 percent of a federally insured minimum.] “It’s not going to kill me,” Gronquist says. “It just kind of breaks your heart that you plan on that and then it gets cut.” Western States’ May 15 appli- cation to the U.S. Treasury De- partment was actually its third at- tempt. The previous two were withdrawn on the advice of Treasury officials for technical reasons. Once the Treasury De- partment approves the applica- tion as expected, a vote by mail will take place within 30 days. If it isn’t rejected by a majority of participants, the cuts will take ef- fect Oct. 1. WHO’S AFFECTED? For Oregon and SW Washington, pension cuts proposed by Western States OPEIU Pension Fund would affect current and former office staff at the following local unions and OPEIU-represented employers: Catholic Archdiocese of Portland Asbestos Workers Local 36 Assn. of Western Pulp & Paper Workers Bakers Local 114 Boilermakers Locals 242 and 500 Cement Masons Local 555 Columbia-Pacific Building Trades Consolidated Freightways CNF/ConWay CWA Local 7901 Machinists District Lodge W-24 IBEW & United Workers Credit Union IBEW Local 48 ILWU Locals 40 and 8 Ironworkers Local 29 and 516 Painters District Council 5 Laborers Local 483 Labor’s Community Service Agency Linoleum and Carpet Layers Local 1236 Machinists/Boilermakers Credit Union Manor Management Services NECA-IBEW Training Trust Northwest Labor Press Northwest Natural Gas Northwest Oregon Labor Council OPEIU Local 11 Oregon Federation of Nurses Oregon State Building Trades Council Oregon AFL-CIO Pacific NW Ironworkers Credit Union Pacific NW Council of Carpenters Painters Local 10 Portland Local 8 Credit Union Sheet Metal Workers Local 16 UA Local 290 UA Local 290 Training Trust UFCW Local 555 Bernie to Disney: Give your workers a raise Raymond Thomas Cynthia Newton Melissa Haggerty James Coon Chris Frost Sydney Montanaro Get your disability application done right, right from the beginning. We help folks from the start. 820 SW Second Ave., Suite 200, Portland, OR 97204 Scott Sell Chris Thomas www.tcnf.legal At a packed June 2 union rally, one of America’s most popular politicians said it’s time Disney paid $15 an hour to workers at its Anaheim theme park and resort. “If a corporation like Disney has enough money to pay its CEO over $400 million in a four- year period, it damn well has enough money to pay its workers at least $15 an hour,” Vermont Sen. Bernie Sanders told 1,500 unionized Disneyland employ- ees. The rally came after a 13- union coalition turned in 21,000 signatures to qualify a local bal- lot measure in November that would establish a $15 an hour minimum wage effective Jan. 1, 2019, with a $1 increase each subsequent January until 2022 — for any employers accepting city subsidies. Anaheim City Council gave Disney a tax break in 2016 val- ued at $267 million over the next 20 years. Disney reported $9 bil- lion in profit last year, and this year president Trump’s corporate tax cut is reducing its tax rate from 35% to 21%. Yet for the 125,000 of its full- and part-time employees who are union-represented, Disney’s cur- rent contract offer is to increase its starting wage from $11 to $13.25, to $15 by the year 2020. “The struggle that you are waging here in Anaheim is not just for you,” Sanders said. “It is a stuggle for millions of workers all across this country who are sick and tired of working longer hours for lower wages, of not be- ing able to find decent housing they can afford, and of not hav- ing adequate health care.”
