Posts tagged defined-benefit pension
Boeing strike ends as workers accept new contract
November 5, 2024 // Boeing has said the average annual machinists' pay at the end of the new four-year contract will be $119,309, up from $75,608 previously. The pay increase may add $1.1 billion to Boeing's wage bill over the four years, while a $12,000 ratification bonus for each union member could result in another $396 million in outflows, according to analysts at Jefferies. More than 26,000 union members voted, putting turnout near 80%.
Op-Ed: Biden’s Longshoreman Strike
October 3, 2024 // American ports are less efficient than most in the world owing to union work rules and restrictions on automation.
Jeep maker Stellantis makes a new contract offer as auto workers prepare to expand their strike
September 21, 2023 // GM said that the UAW strike at its assembly plant near St. Louis caused it to idle a plant in Kansas with about 2,000 workers because “there is no work available” — the plant depends on parts stamped in the St. Louis-area facility. GM said it does not expect to restart the Kansas plant until the strike ends, and it won’t provide supplemental pay to the workers. The company said the layoffs demonstrated “that nobody wins in a strike.” Stellantis, which makes Jeep, Chrysler and Dodge vehicles, said it expects to lay off more than 300 workers in Ohio and Indiana because “storage constraints” caused by the UAW strike at its assembly plant in Toledo, Ohio.
Looming auto strike puts Biden’s labor loyalty to the test
September 1, 2023 // On Monday, the Treasury Department sent a love letter to unions in the form of a new report, arguing that unions are central to the U.S. middle class. “The Biden-Harris Administration recognizes the benefits of unions to the middle class and the broader economy and is committed to fulfilling the policy objectives of the [National Labor Relations Act],” the report said. While unions are seeing a surge in popularity in the U.S., organized labor has been in long-term decline, with union participation rates falling by half since they first started being measured in the early 1980s.
A Bandage Approach: Teaching after Retirement
July 26, 2023 // The problem is that allowing retired teachers to come back to the classroom does nothing to address the problem. Let me be clear on what I mean by “the problem.” I am not talking about the problem of teacher recruitment and the number of people entering the profession. I’m talking about the teacher pipeline problem caused by the retirement system itself. It is a system that pushes people out. It incentivizes teachers, principals, and superintendents to retire in their mid-50s. This new provision does not address that issue; instead, it makes it worse. Researchers have long known that defined-benefit pensions, such as those used in the Missouri teaching profession, have two key effects on the labor market. They provide a pull for workers to stay until the peak benefit period, then they push workers out. If a teacher begins working in Missouri right out of college around the age of 22, they will likely hit their peak benefit period around the age of 53. If lawmakers truly want to keep great late-career teachers in the profession, they should revise the system that pushes them out in the first place. The best way to do this would be to move to a new type of pension system where teachers’ retirement plans would continue to accrue wealth as they continue to work through their 50s.
Opinion: These powerful unions helped flip the Pennsylvania House
May 4, 2023 // Union executives’ political spending continues to break records. For the first time in Pennsylvania history, government unions’ combined political action committee spending surpassed $20 million in one election cycle, more than triple what they spent a decade ago. By comparison, the record-breaking spending in the seven-way Pennsylvania Supreme Court race in 2015 reached a total of $15.8 million across all candidates from all parties. For the governor’s race alone, public sector union executives gave nearly $5.5 million in direct political contributions to Josh Shapiro’s campaign. Three unions in particular — the commonwealth’s largest teacher union, the Pennsylvania State Education Association, and two national unions representing state workers, the Service Employees International Union and the American Federation of State, County and Municipal Employees — reported more than $1 million each. It’s no coincidence that Shapiro must soon sit down and bargain with SEIU and AFSCME executives and that the PSEA expects huge returns in terms of state funding.