Times vs. Times: The Truth on Union Corporate Influence
by F. Vincent Vernuccio
Once again The New York Times misses the big picture in its coverage of organized labor. The Old Grey Lady reports:
[U]nion leaders had amassed an armory of research on derivatives, mortgage foreclosures and even Wall Street pay as part of their effort to hold bankers accountable for the economic pain they helped cause in Los Angeles and across the country.
Why? Labor leaders say the fortunes of banks and unions are linked more than people realize. Wall Street manages union pension portfolios worth hundreds of billions of dollars. Much of that is invested in financial institutions, giving unions a loud voice as shareholders.
Wall Street manages union pension funds? The New York Times failed to note that unions appoint their own trustees to these funds. Most union pension plans are known as multiemployer plans, which are comprised of several companies and generally only one union. The union appoints half the trustees of the plan. These trustees vote as a block and are the ones in actual control of the fund.
This distinction is important for two reasons. First, union pension plans are disastrously underfunded. Also, as The Washington Times’ Kevin Mooney reports:
The average union pension has resources to cover only 62 percent of what is owed to participants, according to the Pension Benefit Guarantee Corp. Pensions with less than 80 percent of the assets needed to cover present and projected liabilities are considered “endangered,” while those that fall below a 65 percent threshold are classified as “critical” under the Pension Protection Act of 2006.
Unions blame everyone but themselves for the underfunding.






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