A new report shining light on the dreadful health of multi-employer pension plans (MEPPs) for U.S. union workers and retirees estimates such plans are only 52 percent funded, with a $369 billion shortfall. MEPPs in the construction industry are responsible for a significant amount of pension shortfalls.
Construction MEPPs are responsible for about $167 billion (or 47 percent) worth of PBGC-insured MEPP underfunding. Abd it could get worse. Fifty-five percent of the 1,488 MEPPs insured by the PBGC are in the construction industry. The largest number of employees from any industry, about 3.885 million or 37.4 percent of all PBGC-insured MEPP participants (workers and retirees), are from the construction industry.
An open shop employee’s letter to the Worcester Telegram (Mass.) editor was published today (“PLAs get in the way of fair play,” 5/4) “in response to a letter to the editor concerning a level playing field for unions.” Mr. Cote of Leominster writes: How can they call it fair play if I pay my taxes the [...]
TruthAboutPLAs.com readers familiar with provisions in wasteful and anti-competitive project labor agreements (PLAs) that force employers to contribute to failing union multi-employer pension plans on behalf of their employees have likely reviewed Required Reading on Multi-Employer Pension Plan Crisis. April 29, Fox Business Network’s Americas Nightly Scoreboard program invited the Small Business All-Stars to discuss Wall Street [...]
BigGovernment.com contributor and former Missouri state senator John Loudon offered his thoughts on the Obama Administration’s effort to encourage the use of wasteful and discriminatory project labor agreements (PLAs) on large-scale federal construction in a April 25 post titled, “Indentured Servitude in the USA and the Biggest Ponzi Scheme Ever.” Specifically, Mr. Loudon discussed how [...]
Aleksandra Kulczuga’s article at The Daily Caller, “Obama Administration Hands Down Rule Limiting Contract Bidding to Union Shops,” interviews an employee of a federal and state contractor who debunks common pro-PLA arguments relying on the fallacy that PLAs guarantee high wages and benefits on federal construction projects: “As a public works company we’re already required to [...]
TheTruthAboutPLAs.com and ABC routinely field questions from contractors about the risks and dangers of signing project labor agreements (PLAs). This summary of a recent case by labor attorney David P. Wolds of the Wolds Law Group of San Diego, CA is yet another example of how a contractor trying their best to comply with the rigged procurement [...]
Here is some required reading about Taft-Hartley plans and the problems facing multi-employer pension plans (MEPPs) by Frances Denmark at the Institutional Investor. Multiemployer Pension Plans Face Uncertain Future (pdf) A Hitchhiker’s Guide to Taft-Hartley (pdf) Update 8/19: Outstanding WSJ analysis in this editorial (8/15): “The Next Pension Bailout” (pdf) Readers can keyword search “pensions” to review [...]
A quote in a recent Washington Business Journal article indicates that Joslyn Williams, president of the AFL-CIO Metropolitan Washington Council, believes McDonald’s employees earn $50 an hour (“Bill heats up battle over required use of union labor,” 2/28/10). “The city has to decide whether it wants people working on its construction projects to earn only ‘McDonald’s wages,’” said Joslyn Williams, [...]
A new study supports a key argument frequently made by nonunion employers and employees against government-mandated project labor agreements (PLAs): PLAs deny health and retirement benefits earned by nonunion employees working on PLA construction projects. An October 2009 report by Dr. John R. McGowan, “The Discriminatory Impact of Union Fringe Benefit Requirements on Nonunion Workers [...]
A column in the Washington Examiner by Irwin Steltzer, a senior fellow and director of the Hudson Institute’s Center for Economic Studies, discusses how Big Labor’s push for the hallucinegenically-named Employee Free Choice Act (EFCA) is primarily a strategy to steady struggling union pension plans (“Irwin Stelzer: Unions need growth to save unfunded pensions,” 9/4). The article is [...]