Posts tagged American Rescue Plan
In Final Weeks Before Election, PBGC Bails Out Several More Failing Union Pensions
October 27, 2024 // With the November 5th elections right around the corner, throughout the months of September and October, the Pension Benefit Guaranty Corporation (PBGC) has been busy approving and announcing the doling out of hundreds of millions of taxpayer dollars to failing union pension plans. While the plan bailouts are not as large as some of the bailouts provided over the last two years, in total, they are a substantial sum—nearly $900 million.
Yellow Found Liable for $6.5 Billion in Pension Claims
September 20, 2024 // Earlier this month, Goldblatt ruled that Teamsters president Sean O'Brien could be deposed regarding the leadup to Yellow's bankruptcy, which could be a factor in whether the estate must pay up the class-action claims. According to Yellow, letters and conversations between O'Brien and former Yellow CEO Darren Hawkins show that the trucking company had a reasonable basis to believe it could prove that the company is not liable for the WARN Act claims. The Teamsters represented 22,000 of Yellow's roughly 30,000 employees when the company went under, with both parties blaming the other for the logistics firm's demise.
Commerce agency near ‘collapse’ over telework, layoffs, union says
June 3, 2024 // Lawmakers, especially Republicans, have been wary of widespread remote work, saying customer service backlogs at government agencies including the Social Security Administration and the IRS prove the case for more in-person staff. Just last week, the acting director of the Office of Personnel Management, the federal government’s HR department, assured lawmakers that more than half of all federal employees work in-person full time.
Central States Reaches Agreement to Repay $127M Overpayment
April 9, 2024 // Congressional Republicans, including Senator Bill Cassidy, R-Louisiana, and Representative Virginia Foxx, R-North Carolina, had subpoenaed the PBGC, PBGC Director Gordon Hartogensis and PBGC Inspector General Seema Nanda for documents related to the repayment. The subpoenas for Hartogensis and Nanda came after Hartogensis testified on March 20 to a subcommittee of the House Committee on Education and the Workforce that Central States was then negotiating with the DOJ to secure the repayment.
Pro-Worker, Not Pro-Union
January 31, 2024 // What the Right has often overlooked in this debate is that the protection of independent-worker status can be coupled with a revamping of worker-benefit options. Lack of benefits is frequently cited as the main drawback of independent work. Republicans could burnish their pro-worker credentials, while protecting businesses from reclassification and other draconian left-wing policies, by proposing a flexible benefit setup for contractors and gig workers that has features similar to a SEP-IRA. It would use a system of employer contributions while giving workers the ability to make pre-tax contributions of their own. The funds could be used for benefits such as paid sick leave, unemployment insurance, or even health insurance, some of which could be purchased through newly created worker-benefit exchanges that act as brokerages for the benefits. Benefit-flexibility concepts can be applied as well to retirement savings, even those of noncontract workers. The current system largely relies on employer-based retirement plans, but many workers find it difficult to roll old retirement accounts over to new jobs. That has led to a proliferation of abandoned “orphan” accounts. Automatic portability for retirement accounts would make it possible for more workers to take their accounts with them to new jobs. Also due is a nuanced rethinking of noncompete agreements in labor contracts. While libertarian notions of the freedom of contract have long led right-leaning policy-makers to resist the imposition of restrictions on contractual arrangements, recent years have seen more free-market proponents question the efficacy of noncompetes with respect to their impact on worker freedom and earnings.
Massachusetts Teachers Illegal Strike Wave Rolls On
January 17, 2024 // Public school workers can’t legally strike in Massachusetts—but Andover’s is just one of a series of school unions that have struck over the last four years, defying the ban, and in some cases paying heavy fines as a result. The Massachusetts Teachers Association is pushing for legislation that would legalize public sector strikes after six months of bargaining.
House probe starts after $127M in bailout funds paid to dead Teamsters’ pension plan
January 16, 2024 // Foxx and Good also said the “mismanagement casts doubt on PBGC’s implementation of the larger program, the $91 billion Special Financial Assistance (SFA) program,” saying Central States had sent a follow-up letter to the inspector general’s office that implied it would use the money “as their personal slush fund” to help it “achieve its statutory objective of remaining solvent through 2051.” Inspector General Nicholas Novak previously told The Post that there was no clawback function available to PBGC as part of the American Rescue Plan, through which the Biden administration provided more than $80 billion to other multi-employer pension funds.
Commentary: Teachers Union Head Mystified by Increase in Homeschooling
November 19, 2023 // Parents started seeking accountability on their own terms, at home. The surge in homeschooling during the 2020 school year has not dropped off, attracting enthusiasts from diverse racial and income backgrounds. While there are many reasons for the shift, a significant factor is leaders like Weingarten left a vacuum parents had to fill. When they did, parents learned they could do it without the leaders who left them in the lurch. Their kids' education could be flexible and tailored, without the constraint of having to sit at a desk between four walls for seven hours a day. Parents learned they had the power to fix some of the problems the pandemic posed.
As Hollywood strike drags on, Biden’s relationship with unions becomes complicated
September 6, 2023 // For example, in the 2020 election, labor unions contributed $27.5 million to Biden’s campaign while his opponent, former President Donald Trump, received less than $360,000, according to Open Secrets. The states with the largest concentration of union workers are hardline Democratic states, like Hawaii, New York, Washington, Oregon, New Jersey and California. In 2022, 10.1% of American wage and salary workers belonged to unions compared to 20.1%, in 1983, signifying a large drop in membership. But this hasn’t translated to a drop in popularity for unions, at least according to recent polls.
Feds: Carpenters union gets $183M of stimulus to restore cut pensions
August 18, 2023 // The retirement plan covering nearly 5,400 Southwest Ohio union carpenters got a nearly $183 million government bailout on Tuesday, according to an announcement by the federal Pension Benefit Guaranty Corporation. The money comes from a program aimed at shoring up pension plans, created as part of the broader stimulus package enacted in 2021 in the wake of the COVID-19 outbreak. The money will benefit members of the Southwest Ohio Regional Council of Carpenters Pension Plan, which in 2019, slashed pension benefits for thousands of members by an average of 18% to remain solvent. PBGC’s approval enables the plan to restore benefits previously suspended and to make payments to retirees to cover prior benefit suspensions, the federally chartered corporation said in a statement. The funding will enable the plan to pay retirement benefits without reduction for many years into the future.