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  • 12
    Mar
    2013
    6:37pm, EDT

    Colorado: Gays and lesbians can enter civil unions

    Ed Andrieski / AP

    Rep. Pete Lee, D-Colorado Springs, left, and Rep. Tony Exum, D-Colorado Springs, confer as the civil unions bill is debated in the House Chamber at the Capitol on Monday, March 11, 2013.

    By Miranda Leitsinger, Staff Writer, NBC News

    Colorado lawmakers on Tuesday approved legislation allowing same-sex couples to enter civil unions, two weeks before the U.S. Supreme Court will hear arguments over whether gays and lesbians can wed.

    The state House of Representatives voted 39-26 to pass the “Colorado Civil Union Act,” about one month after the Senate approved the bill. Democratic Gov. John Hickenlooper, who said he will sign the legislation, tweeted: “#CivilUnions passes! Today, every Coloradan has equal rights.”

    Follow @mimileitsinger

    Some House Republicans said that the bill, which goes into effect May 1, will be challenged because it doesn’t offer religious exemptions. "We won't get to debate this again here, but we will debate this in a court of law," Republican Rep. Lori Saine told The Denver Post.

    Five other states allow civil unions, providing state-level spousal rights to same-sex couples, while nine other states, plus the District of Columbia, grant same-sex marriage, according to the National Conference of State Legislatures.


    Follow @NBCNewsUS

    Same-sex marriage is not allowed in Colorado, where voters passed a constitutional amendment in 2006 defining marriage as between a man and a woman. The civil-unions legislation passed on its third try, according to Lambda Legal.

    Though lawmakers and others applauded Tuesday’s vote, some said it did not go far enough.

    "Of course civil unions and domestic partnerships, no matter how complete the package of protections, are not marriage,” Jennifer Pizer, Lambda Legal's law and policy project director, said in a statement. “True equality is the freedom to marry the one you love and be included under the same laws as your neighbors. It is time to end the exclusion of same-sex couples from marriage, and Lambda Legal and many others will continue to fight for that goal."

    The Supreme Court will hear two cases related to same-sex marriage at the end of March: The justices will hear arguments over the constitutionality of Proposition 8, a California law banning same-sex marriage, and the Defense of Marriage Act, federal legislation barring recognition of same-sex marriage.

    265 comments

    Separate but equal does not fly.

    Show more
    Explore related topics: marriage, gay, court, civil, california, colorado, lesbian, unions, supreme, same-sex, doma, prop-8
  • 11
    Dec
    2012
    11:57am, EST

    Snyder signs Michigan anti-union 'right to work' measures over protests of thousands

    Michigan has officially become the 24th "right to work" state, outlawing forced union membership in both the public and private sectors. NBC's Ron Mott reports.

    By M. Alex Johnson, NBC News

    Updated at 7:30 p.m. ET: Michigan Gov. Rick Snyder signed into law two bills Tuesday sharply limiting labor rights, which the House passed over the objections of thousands of people packing the Capitol in protest, some of whom chanted "Shame on you!" from the gallery.

    Follow M. Alex Johnson on Twitter and Facebook.

    "This isn't about us versus them. This is about Michiganders," Snyder said at news conference in the state capital, Lansing, where he announced that he had signed the legislation.

    By a 58-51 vote, the Republican-led House passed a bill that would ban workplace rules that make union membership a condition of employment for government workers. It then approved a second bill, covering private-sector workers, by a vote of 58-52. 

    When the new rules take effect, probably in late March, Michigan — one of the most union-friendly states in the country —will become the 24th "right to work" state, making payment of union dues voluntary even though the union negotiates on a worker's behalf.


    Slideshow: Protests at the Michigan State Capitol

    James Fassinger / Reuters

    Click to see the anti right-to-work protests that happened at the Michigan State Capitol.

    Launch slideshow

    Snyder told NBC News' Andrea Mitchell that he was "pro-collective bargaining," but he said right-to-work laws denied workers freedom of choice.

    "I think it's a good thing," he said of the legislation. "I think it's pro-worker."

    Michigan labor fight puts 'tough nerd' Snyder under partisan spotlight

    Michigan has long been considered the heart of organized labor. But now it may draw new manufacturing plants that had been drawn to "right to work" states in the South. CNBC's Phil LeBeau reports.

    As the vote was taking place, as many as 10,000 people descended on the Capitol, State Police estimated, prompting authorities to restrict access to the building because it was at its capacity of 2,000. The overflow filled the lawn and stretched down East Michigan Avenue to the Lansing Center across the river several blocks away.

    About 200 onlookers filled the gallery overlooking the House floor Tuesday. As debate resumed on one of the bills, the session was interrupted with protesters yelling, "Shame on you," NBC News' Nadine Comerford reported.

    After the votes, protesters then moved to the building housing Snyder's office, chanting, "Governor Snyder, just say no!"

    Live developments on breakingnews.com

    Law enforcement officials said they wouldn't let Michigan become another Wisconsin, where demonstrators occupied the state Capitol around the clock for nearly three weeks last year to protest similar legislation.


    Follow @NBCNewsUS

    Armed with tear gas canisters, pepper spray and batons, State Police officers guarded the Capitol as protesters shouted "No justice, no peace!" and "Shut it down!" NBC station WILX of Lansing reported. 

    State Police officials confirmed that one of their troopers used pepper spray on one protester. Police spokesmen said the man was sprayed when he grabbed a trooper and tried to pull her into the crowd.

    The man wasn't arrested, but two other people were arrested after they tried to force their way into another building on the grounds where Snyder has offices, police said. 

    A tent set up by supporters of the measures also collapsed amid what authorities described as "pushing and shoving" among protesters. No one was hurt, police said.

    Elsewhere on the lawn, four large inflatable rats were set up to mock Snyder, House Speaker Jase Bolger, Senate Republican leader Randy Richardville, and Dick DeVos, a prominent conservative businessman who union leaders say is behind the bills.

    Obama decries right-to-work proposal during trip to Michigan

    Schools in at least three districts were closed because so many teachers and other staff were at the rally.

    NBC's Ron Mott reports on the latest from the labor protests in Lansing, Mich., and then, Msnbc's Tamron Hall talks with Rep. Sander Levin, D-Mich.

    Valerie Constance, a developmental reading instructor for the Wayne County Community College District and a member of the American Federation of Teachers, sat on the Capitol steps with a sign shaped like a tombstone. It read: "Here lies democracy."

    Scott Hagerstrom, director of the Michigan affiliate of the activist group Americans for Prosperity, said the new laws would be "a win-win for Michigan's economy, for individual freedom."

    "What a lot of these protesters may not realize is that after this bill passes, they can still belong to a union. It'll just be their choice. They just can't force their co-workers to give their hard-earned money to a private organization," he said.

    But Rep. Sander Levin of Michigan, the ranking Democrat on the Ways and Means Committee, called it "a terrible result."

    "Workers want a voice and ... they want to be sure when conditions are set that they're part of the process," he said in an interview on msnbc.

    Valerie Constance, a developmental reading instructor for the Wayne County Community College District and a member of the American Federation of Teachers, sat on the Capitol steps with a sign shaped like a tombstone. It read: "Here lies democracy."

    But Mark Mix, president of the National Right to Work Committee, hailed the votes, saying the made for "a great day for Michigan's workers and taxpayers,"

    "I would like to congratulate Michigan's workers for their newly protected freedom to work without union affiliation as a condition of their employment," Mix said.

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    4543 comments

    I'm confused as to why this is viewed as anti-union? Unions still have the right to form and the right to collectively bargain. They just don't have the right to forcibly extract dues. If people see the union as beneficial, which many times it can be, then they will pay their dues.

    Show more
    Explore related topics: michigan, unions, featured, rick-snyder
  • 8
    Oct
    2012
    6:07pm, EDT

    Obama names Cesar Chavez home a national monument

    Carolyn Kaster / AP

    President Barack Obama walks with Cesar Chavez' widow Helen F. Chavez, left, and Dolores Huerta, Co-Founder of the United Farm Workers, as they tour the Cesar E. Chavez National Monument Memorial Garden on Monday.

    By NBC's Ali Weinberg

    KEENE, Calif. – Taking a break from fundraising in California, President Barack Obama traveled to this vast, rural Northern California reserve to designate the home of Cesar Chavez a national monument.


    Follow @NBCNewsUS

    The National Chavez Center at La Paz, where labor leader Cesar Chavez lived and organized the first successful farm workers union, is now recognized by the federal government as a national monument.

    “Today, La Paz joins a long line of national monuments – stretching from the Statue of Liberty to the Grand Canyon – monuments that tell the story of who we are as Americans,” the president said, surrounded by rolling hills and brush as he addressed an outdoor audience of 6,600.


    The designation means that the site, which contains Chavez’s carefully preserved office and a memorial garden with his grave, will be tended to by the Department of the Interior, which is charged with coming up with a management plan for the site within three years of the designation.

    President Obama commemorated labor leader Cesar Chavez Monday by designating his home a national monument.

    During his remarks President Obama praised Chavez as a leader who was able to galvanize a movement in the 1970’s for the rights of an underrepresented group: Latino farm workers.

    Chavez was the head of the United Farm Workers of America whose motto was “Si, se puede,” which inspired Obama’s own 2008 campaign motto, “Yes, we can.” Chavez’s work also inspired Obama when he was a young community organizer in Chicago.

    Chavez died in 1993; he was 66.

    “It was a time of great change in America but too often that change was only expressed in terms of war and peace, black and white, young and old,” Obama said. “No one seemed to care about the invisible farm workers who picked the nation’s food, bent down in the beating son, living in poverty, cheated by growers, abandoned in old age, unable to demand even the most basic rights.

    “But Cesar cared,” he continued. “And in his peaceful, eloquent way, he made other people care too.”

    Later Monday, the president planned to return to the campaign trail to raise money in San Francisco.

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    58 comments

    Un effing believable. What a waste of taxpayer money.

    Show more
    Explore related topics: labor, california, unions, farmworkers, barack-obama, cesar-chavez, national-monuments
  • 17
    Aug
    2012
    12:04pm, EDT

    Ex-Border Patrol union president indicted on fraud charges

    View more videos at: http://nbcsandiego.com.

    By Sarah Grieco, Tony Shin and Monica Garske, NBCSanDiego.com

    SAN DIEGO -- A retired president of the National Border Patrol Council has been indicted on federal charges after being accused of allegedly using hundreds of thousands of dollars in union funds for personal use, according to the U.S. Attorney’s office.


    Follow @NBCNewsUS

    Campo, Calif., resident Terence Bonner, 59, allegedly diverted thousands of dollars in union funds for personal use.

    The indictment accuses Bonner of using union dues while he was in charge to do things such as visit his mistress in Chicago or attend hockey games and other sporting events.


    See the original story  |  More from NBCSanDiego.com

    He held his position for more than 20 years.

    Charges include wire fraud and conspiracy to commit wire fraud in a scheme to defraud some 14,000 dues-paying union members.

    Watch US News videos on NBCNews.com

    In addition, the indictment alleges that Bonner submitted expense vouchers seeking reimbursement for union-related travel expenses such as meals, car rentals, tips, luggage, books and magazines -- when he was traveling for personal reasons, including vacations and other non-union activity.

    According to the indictment, Bonner used his position to enact a number of unusual policies to benefit himself and other union officials, such as reimbursement for clothing expenses and up to $800 a year for gifts.

    During his tenure, Bonner initiated a policy requiring the union to pay premium rates for work completed on Sundays, holidays and night shifts. But the indictment states Bonner allegedly submitted false claims for “lost wages,” including “seeking ‘lost wages’ for time frames when he was not working on union activities but at home, downloading, viewing and archiving” inappropriate material.

    He also allegedly submitted and obtained reimbursement for dozens of hard drives used to store the inappropriate material on his computer.

    Read the original report from NBCSanDiego here

    NBCSanDiego spoke to Bonner’s wife Thursday night, but she did not want to appear on camera. She said she is standing by her husband and believes he is innocent.

    For others, sticking by Bonner may not be an option.

    For 22 years, Bonner was highly trusted by many as union's persident. However, according to current president George McCubbin, that trust is now gone.

    McCubbin said the investigation into Bonner began about two years ago, after government officials found unusual activity with his travel vouchers.

    “He always claimed that he was doing union business when in reality it was private business,” said McCubbin.

    McCubbin said Bonner claimed he didn’t do anything wrong and that the indictment was “all just a fishing expedition.”

    However, McCubbin is not convinced.

    Stay informed with the latest headlines; sign up for our newsletter

    He said the union travel reimbursement system has been overhauled to prevent this from happening again.

    “We're going to talk to an attorney and see what we can recoup -- some of the funds, if not all of them,” added McCubbin.

    Bonner will appear in court on Aug. 20.

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    29 comments

    How can this be? Everyone knows union officers have nothing on their minds other than the tireless pursuit of justice for the workers, right?

    Show more
    Explore related topics: crime, unions, border-patrol, wire-fraud, national-border-patrol-council, commentid-crime
  • 14
    Jun
    2012
    11:09am, EDT

    Chicago pushes longer school days as key to achievement: 'We had to do something'

    REUTERS/John Gress

    Thousands of Chicago Public School teachers rally before marching to the Board of Education's headquarters in protest in Chicago on May 23. Teachers say they are upset with contract talks, especially the offered 2 percent raise to work a longer school day this fall.

    By Sevil Omer, NBC News

    Many children in Chicago Public Schools will go from having the shortest school days in the nation to some of the longest this fall, a move that some experts say is needed to help push the struggling system ahead in student achievement.


    Follow @msnbc_us

    Other school districts are reporting improvement in achievement after extending the school day, and if President Barack Obama and Education Secretary Arne Duncan had their way, all of America's kids would be in school longer with shorter summer vacations.

    But one researcher said the perception among policy makers and the public that U.S. students spend less time in school than their peers in other countries is not backed by fact.

    “To paint a broad brush is misleading," said Jim Hull, a senior policy analyst at the Center for Public Education in Alexandria, Va. The center is an initiative with the National School Boards Association. "The vast majority of American students are required to go school for as many hours a year as students in most all other countries.”


    Still, in Chicago, public school students have the shortest school day — 5 hours and 45 minutes — among the nation's 50 largest districts, according the National Council on Teacher Quality. The national average is 6.7 hours in school. Under Chicago Mayor Rahm Emnauel's plan, elementary schools will move to seven hours and most city high schools will extend their day to 7½ hours, although one day during the week would be shorter by 75 minutes. 

    Chicago teachers vote for strike in battle over pay, longer school days

    “More districts are now looking to break free of the standard school schedule because there are too many students who are not reaching higher academic standards,” said Jennifer Davis, president of the National Center on Time and Learning, a Boston-based nonprofit group dedicated to expand learning time to improve student performance.

    School districts across the country are using federal or state funding to extend the school day and/or school calendar, said Staci Maiers, spokeswoman for the National Education Association, which supports teachers and school employees. The NEA has 3 million members.

    But Hull said time spent learning in school and time spent studying are two different things.

    Students in China, Korea, Japan and India are not required to spend more time in school than most U.S. students, Hull said. According to the U.S. Department of Education, American schools average 180 days on instruction each year. Most nations require between 175 and 180 days of school and/or between 900 and 1,000 hours of instructional time per year, depending on the grade level, he said.

    “It should not be taken that time is not important because it is very much so," Hull said. "In the case of Chicago Public Schools, it can be an extremely valuable tool for students who need the extra time."

    'We had to do something'
    Emanuel and leaders of the Chicago Public Schools hope more time in the classroom will mean better grades and more high school graduates from the nation's third-largest school system.

    "Among 10 of the largest cities in the U.S., our students have 22 percent less instructional time than their peers, and 83 percent of our third-graders are not reading at their grade level," Marielle Sainvilus, spokeswoman for the Chicago Public Schools, told msnbc.com. "We had to do something to ensure that our students had the time in class needed to succeed."

    Sainvilus said some elementary schools and charter schools in Chicago have added extra time to their school day, but getting all on board has proven to be a challenge.

    A longer school day is a contentious issue for Chicago parents, students and the Chicago Teachers Union, which represents 25,000 members. 

    "I think if it is done appropriately, it could be a great thing,” said Nell Cotton, a mother of two children enrolled in Chicago schools. "We're facing a $700 million deficit in the district and our students don't even have a playground to play in -- how are they going to find the money to extend the day?"

    If her 12-year-old daughter Cecilia Cotton had her way, she would nix the plan and head home at 2:15 p.m.

    “More school? It’s hard enough already,” said the sixth-grade student. “Getting to school earlier or later is not going to helpful for me or my family. I am not looking forward to it."

    Watch the Top Videos on msnbc.com

    The longer school day is part of contract negotiations between the schools and the Chicago Teachers Union. The teachers voted to authorize a strike as early as mid-August, union officials say. Union leaders said the vote provides leverage in the negotiations.

    Chicago teachers are upset at Emanuel, whose School Board rescinded a 4 percent pay increase for teachers last year, and who asked teachers at several schools to waive the union contract to work more hours once the school day is extended in the fall, according to NBCChicago.com. The Illinois Educational Labor Relations Board, however, blocked any negotiation attempts with schools, according to NBCChicago.com.

    View more videos at: http://nbcchicago.com.

    'Keep moving ahead'
    While the Chicago schools and the union wrestle, administrators elsewhere are moving ahead on expanded classroom time.

    All 25 district schools in the Louisiana Recovery District are operating on an expanded school day, with a standard of 8.5 hours, and most of the 55 charter schools in New Orleans feature a longer day and/or year, according to Davis, of the National Center on Time and Learning.

    Willie E. Thompson Middle School and Arthur Hill High School, both in Saginaw, Mich., are just two of the schools that have used federal School Improvement Grants to hire additional staff for its extended learning, according to NEA’s Maiers.

    In New Jersey, about 25 school districts could have longer days and school year under a bill being considered by the state’s Assembly Education Committee on Thursday, according to the Newark-based Star-Ledger.

    In Phoenix, Balsz School District Superintendent Jeffrey Smith said not only do the district's 2,800 students have a seven-hour school day, but students have more school days than the average U.S. public schools student. Students at Balsz's five schools have classes for 200 days, compared to the traditional 180 days, Smith said. The Balsz district adopted a longer school day and calendar three years ago, Smith said.

    “Two of our five schools were failing, and since we extended our year we have seen an incredible growth in our students," Smith said. He said he's seen improvements in grades in math and reading across the district.  

    "I highly encourage Chicago to keep moving ahead and to keep doing what they plan to do to increase their school hours," Smith said. "We went through these kinds of discussions and everyone has to remember to make decisions benefiting the student. ... Students need longer days and a longer school year to be competitive in our world today. There is no way around it."

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    733 comments

    I would like to see kids goto school 9 hours a day 8am to 5pm they can have 4 elective to counter act the longer day and imagine how much we would save on after school daycare and how much more prepaired the children will be to enter the work force since they would be use to the hours. I am all for  …

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    Explore related topics: chicago, schools, education, teachers, unions, featured
  • 14
    Jun
    2012
    7:32am, EDT

    Foreign automakers stubbornly keep UAW off the line

    A United Auto Workers member wears a shirt proclaiming "United We Stand' during a ceremony commemorating the 75th anniversary of the "Battle of the Overpass."

    By Paul A. Eisenstein, msnbc.com contributor

    Late last month, the United Auto Workers quietly celebrated the 75th anniversary of its historic confrontation with goons from the Ford Motor Co. The event, which came to be known as the “Battle of the Overpass,” ended years of resistance to the union’s organizing drive, effectively entrenching one of the most powerful entities in the modern labor movement.

    But now, weakened by a sharp decline in membership, a generally hostile national mood and years of forced concessions, the UAW is facing what some believe is an equally significant and perhaps even tougher battle. One that could determine the future of not just the UAW, but the American auto industry, and perhaps even the American labor movement itself.

    While the UAW continues to represent Detroit’s Big Three manufacturers, it has all but completely failed to gain representation rights for the so-called transplant lines now run by virtually all the major foreign-owned automakers, from BMW to Toyota to Volkswagen. Observers consider it critical for the union’s long-term survival to win over workers at those transplants, and UAW leaders apparently believe their best opportunity may come at the big Nissan plant in Canton, Miss., where the union is in the midst of a major organizing drive.

    “I think you’ll see an unprecedented effort” to organize the transplants, said Harley Shaiken, a labor professor with the University of California, Berkeley, during a recent interview.

    Indeed, UAW President Bob King has made the organizing drive his top priority since assuming that post in 2010.  He has bluntly warned that failure could threaten the UAW’s very survival. Since membership peaked at just over 1.5 million in 1979, the UAW rolls have tumbled to barely 400,000 — even with a push to sign up clerical and health care workers and others outside the automotive industry. 

    Despite severe cost-cutting, the UAW is now running an operating deficit and tapping into its financial reserves, notes analyst and broadcaster John McElroy, host of "AutoLine: Detroit." 

    “They have to give it a try because they don’t have a choice,” said McElroy. “But it’s hard to see how they might be successful this time.  They’re trying to organize in a right-to-work state where there’s a generally anti-union attitude.”

    When the UAW hit its peak a third of a century ago, Detroit-based auto manufacturers overwhelmingly dominated the American marketplace.  But there were ominous signs that a change was in the works.  Emerging from the second of the 1970s Mideast oil shocks, motorists by the thousands, then millions, began shifting to Japanese imports. 

    Facing heavy political pressure, Honda opened a small motorcycle plant in Marysville, Ohio, and in November 1982 added its first North American assembly plant.  Today, virtually every major foreign maker from Europe, Japan and South Korea has followed.  Honda, in particular, now produces about 90 percent of the vehicles it sells in the U.S. at factories in the North American Free Trade Agreement region.  Nissan and Toyota aren’t far behind and, if anything, the foreign-owned makers continue to expand their presence due to lopsided exchange rates. Volkswagen opened a factory in Chattanooga, Tenn., last year, and is already adding additional shifts and is talking about adding a mirror-image facility within a couple years.

    So far, only three transplant facilities have been organized — and then, only facilities launched as joint ventures between U.S. and Japanese makers.  Worse for the union, the New United Motor Manufacturing, Inc. joint venture between Toyota and General Motors in Fremont, Calif., has closed, and Mazda is abandoning its joint venture with Ford in suburban Detroit.  Only the Mitsubishi plant in Normal, Ill., originally a joint venture with Chrysler, remains unionized.


    Follow @msnbc_business

    Organizing the rest of the transplants has been a goal of every UAW leader since the mid-1980s, and the union got as far as holding a vote twice at Nissan’s mile-long assembly plant in Smyrna, Tenn. Twice, in fact. Although it was rejected by more than two-to-one in 1989 and again in 2001.  Efforts elsewhere haven’t even reached the voting level.

    UAW organizers believe they may have found a crack at Nissan’s other U.S. plant; workers at Canton are being paid an estimated $1.50 an hour less than the reported $26.50 earned in Smyrna.  Then again, the Mississippi plant also pays an average $10 more than the prevailing wage in that state, and workers get extensive benefits that include sharply discounted prices for new cars and auto insurance.  Meanwhile, the UAW has taken pains to remind workers Nissan hasn’t laid off a single hourly employee since setting up shop in the U.S.

    In a statement, UAW President King complained that the carmaker isn’t just trying to make its point but has subjected workers to extensive “interrogations” and daily meetings designed to reinforce its anti-union message — charges the company denies.

    If there’s anything that might work in the union’s favor it’s the bone-wearying schedule workers are being subjected to, especially as both Nissan workers in Canton and Smyrna ramp up production of the all-new 2013 Altima — which the company believes it can use to capture the high-profile lead in the large midsize sedan segment and topple longtime leader the Toyota Camry.

    During the launch of production at the Smyrna plant last month, Bill Krueger, vice chairman of Nissan Americas, alluded to the strain when talking about the addition of a new third shift.   “It allows us to (no longer) burden our work force (in Smyrna) with 11- and 12-hour shifts,” something he noted results “in the fatigue factor when you get into extensive overtime for a sustained time.”

    In the early part of the 20th Century, labor leaders often had to shed blood in their effort to organize.  The UAW’s first president, Walter Reuther, was severely injured during a battle with Ford thugs on an overpass leading to the maker’s huge River Rouge complex.

    There’s little likelihood of a similar confrontation with the transplants.  But union organizers can expect to shed plenty of sweat and tears, if not their blood, in their drive to save the UAW.

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    243 comments

    Late last month, the United Auto Workers quietly celebrated the 75thanniversary of its historic confrontation with goons from the Ford Motor Co. And look at them now, the bullied became the goons, what a cycle.

    Show more
    Explore related topics: autos, uaw, unions, featured
  • 15
    Mar
    2012
    2:36pm, EDT

    Pension predicament: New York just the latest state to cut retirement benefits

    Mike Groll / AP

    New York Gov. Andrew Cuomo says the pension reforms passed by state lawmakers will save more than $80 billion over the next 30 years.

    By msnbc.com staff

    The pension cuts that public workers in New York will face are just the latest in a litany of retirement benefit reductions instituted by financially strapped states across the country, even as the economy flickers back to life.


    Follow @msnbc_us

    A report released this week by the National Conference of State Legislatures says 43 states reduced retirement benefits for broad categories of public employees and teachers from 2009 through 2011. The changes to public pension plans, once considered a sacred cow immune from the chopping block, include increasing employee contributions, boosting age or service requirements for retirement, or both.


    “What it says is that policy makers have found existing public employee plans to be too expensive for them to afford in the future, so they’re essentially shifting more of the cost to employees in a number of ways,” Ron Snell, a director with the National Conference of State Legislatures in Denver, told msnbc.com.

    The New York Legislature early Thursday approved a pension overhaul proposal backed by Gov. Andrew Cuomo that reduces retiree benefits for future state and local government workers, increases employee contribution rates and boosts the retirement age for most new workers by one year to 63.

    Cuomo said the reforms will save more than $80 billion over the next 30 years.

    "For years, local governments have struggled to cope with soaring retirement costs, driving up taxes on New York families and small businesses," Cuomo said in a statement Thursday. "Without this critical reform, New Yorkers would have seen significant tax increases, as well as layoffs to teachers, firefighters and police."

    New York lawmakers pass sweeping pension cuts

    The AFL-CIO, the largest U.S. labor group, blasted the plan as harmful to employees.

    “Instead of cutting pensions for workers, we should focus on ensuring that corporations and the wealthiest New Yorkers are paying their fair share of taxes,” the labor group said in a statement this week.

    New York’s $140.3 billion fund is the third-largest U.S. public pension plan, and one of the best-performing. It had 101.5 percent of the money to pay its obligations in 2010, according to an annual study by Bloomberg Rankings.

    So if New York can’t afford to maintain its current level of retiree benefits, can any state?

    The California Public Employees' Retirement System, the nation's largest public pension fund, this week lowered its forecast for investment returns and asked the state of California, school districts and local governments to increase contributions — a move that could siphon more money from basic services.

    CalPERS’ $233 billion fund, which serves 1.6 million California government workers, retirees and their families, has an unfunded liability of at least $85 billion, according to The Associated Press.

    Across the nation, Snell says, states are trying to play catch-up with a reservoir of unfunded liabilities caused by two severe recessions since 2000. The economic downturns wreaked havoc on the value of stocks and other assets held by pension funds. Couple that with an increasingly aging workforce that's nearing retirement and you have a recipe for pension pitfalls.

    “The big issue is not so much pensions going forward as it is large unfunded liabilities that are legacies of the past,” Snell says. “Reducing pensions costs going forward puts states in more favorable position to address those problems, but doesn’t resolve them.”

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    108 comments

    Most people in the private sector pay for their own retirement through 401K's. Why do I have to pay for workers pensions yet take responsibility for my own retirement.

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    Explore related topics: economy, new-york, unions, pension

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