Do Teamsters Have Their Sights Set on
Railroad Retirement Assets?
(See the RRB Rebuttal Below)
News reports over the weekend
of the looming failure of United Airlines' employee pension plans and the
horror facing retired rank-and-file airline employees and their families as a
result, should give railroaders and their families pause.
On the one hand, the Railroad Retirement fund, which pays substantial
benefits in excess of Social Security, is financially
sound following a recent run-up of some $7 billion in new investment income.
No railroad family need worry about the solvency of their railroad
pension fund or losing the generous retirement benefits it pays -- that is,
unless the Railroad Retirement fund's assets are bled off to pay retirement
benefits to truck drivers.
Whoa, Nelly. What is going on here? Using Railroad Retirement trust fund
dollars to pay truck driver pensions?
Officials of the Brotherhood of Locomotive Engineers, which is in the
process of merging with the Teamsters Union, acknowledge that a simple
stroke of three pens in
Think this potential nightmare through for a moment, because the BLE admits it
could occur. According to BLE President
Don Hahs, a Teamsters' raid on the Railroad Retirement fund is "impossible
without an act of Congress."
An act of Congress? Holy cow. What's he really telling us?
Let's connect the dots, all of which already have been provided by the
Teamsters.
For one, the Teamsters Central States Pension Plan, which pays retirement
benefits to some 400,000 truck drivers, is nearly broke, according to news
reports. The fund, according to news
reports, already has slashed retirement payouts to its current and future
retirees and canceled the ability to collect benefits earlier than age 65
following 30 years' employment.
Two, because the political future of Teamsters leaders could well depend
upon solving this calamity -- regardless of who is to blame -- there is
speculation that the Teamsters' leadership has its eyes on the $24.2 billion
Railroad Retirement trust fund. But
truck drivers can't get at that money unless -- as the Brotherhood of
Locomotive Engineers says -- Congress chooses to open the trust fund's vault to
truck drivers.
So why would the Teamsters eye the Railroad Retirement fund?
Unlike the Teamsters' Central States Pension Plan, Railroad Retirement is
financially strong. The labor member of
the Railroad Retirement Board recently said:
"Barring a sudden, unanticipated, financial jolt, the Railroad
Retirement system will experience no cash-flow problems for at least 22
years." The "sudden,
unanticipated jolt" that could doom Railroad Retirement could be its
having to share trust fund assets with more than 400,000 truck drivers -- and
that's no mud flap.
Indeed, having to share Railroad Retirement trust fund balances with truck
drivers would doom railroad families to accepting much less than they would
otherwise collect during their old age.
The reported calamity of the truck drivers' Central States Pension Plan
would be visited upon railroaders -- but only after truck drivers helped
themselves to the Railroad Retirement funds' $24.2 billion in assets.
How realistic is this potential nightmare?
Realistic enough that every railroader should think long and hard
about why the Teamsters are trying to bring railroaders into their truck
drivers' union.
The Teamsters regularly brag about the power of their congressional
lobbying. Last month, the Teamsters
boasted how their president, Jim Hoffa, was invited to speak at the Democratic
National Convention in
No other transportation union -- EXCEPT the United Transportation Union --
has as strong a lobbying presence in
Consider that if railroad unions are merged into the Teamsters, those
railroad unions will have to take orders from the truck drivers who run
the Teamsters for the benefit of truck drivers.
In fact, the Teamsters ruling body, its General Executive Board, is
dominated by former truck drivers.
Even the merger agreement between the BLE and the Teamsters does not
guarantee the so-called rail division a seat on the Teamsters' General
Executive Board. The merger document
only says that such an appointment could possibly occur if the Teamsters'
president issues an invitation.
The history of the Teamsters in permitting non-truck drivers a say in
their affairs is dismal. For example,
more than 11,000 Northwest Airlines flight attendants recently disaffiliated
with the Teamsters because, said reports, those flight attendants were given no
meaningful voice in setting Teamsters policy.
Reports said they faced "strong arm tactics" and were hooted
off the floor with "catcalls" and "sexist" slurs during a
Teamsters convention at which those flight attendants attempted to voice
opinions.
It is reasonable to fear a similar fate awaits rail unions that affiliate with
the Teamsters, which, after all, is dominated by truck drivers.
When the voices of independent railroad unions are silenced, there will be
nobody left to defend Railroad Retirement before Congress.
For sure, the railroads, which have always complained about the expense of
funding Railroad Retirement, will not oppose a phased end to Railroad
Retirement, which could be the sweetheart deal the Teamsters offer in exchange
for making truck drivers eligible for Railroad Retirement trust fund balances.
Certainly a George Bush Republican administration would not stand in the
way of a deal endorsed by the railroad companies. And what hope could there be for railroaders
and their families under a Democratic administration and/or
Democratic-controlled Congress if there were no independent and strong railroad
union voices remaining to fight the Teamsters' grab for Railroad
Retirement assets?
With rail unions under the control of the Teamsters' General Executive Board,
there would be no railroad union voice -- or even whisper -- to be heard in
Congress. Only the Teamsters' General
Executive Board roar would be heard.
That's a scary thought. But it also
speaks volumes of reality. It
wouldn't be the first time eyes and ears were not properly attuned to
present-danger warnings, as the 9/11 Commission has made abundantly clear in
recent weeks.
Indeed, why else -- if not out of selfish interest to tap into the $24.2
billion Railroad Retirement trust fund -- would the Teamsters be spending
so much money and exerting so much effort to entice railroaders into the
Teamsters Union?
Certainly the goal of the Teamsters is NOT to encourage more freight to
move by railroad -- which IS the intent of independent railroad unions.
Read, mark and inwardly digest that the Teamsters Union demanded in its
most recent contract with trucking companies
that those trucking companies further limit how much of their freight may be
moved by more fuel efficient and environmentally friendly railroads. To be
forewarned is to be forearmed.
What is at stake are railroad jobs and the security of railroad families
whose breadwinners spent a career working on the railroad in valid
expectation of a Railroad Retirement pension.
When railroaders stick together, no amount of huffing and puffing can blow
their house down. When railroaders are divided, they are in imminent danger of
being conquered.
That's why, more and more, UTU members are answering the BLE knock at the
door with this response: "Just how is the BLE, when under truck driver
union control, going to protect my Railroad Retirement pension? Just how is it
going to do that? Brother, I'm stickin' with a railroad union. I'm stickin'
with the UTU."
A Rebuttal from the Railroad
Retirement Board.
RAILROAD RETIREMENT BOARD
GENERAL COUNSEL
This is in response to your recent inquiry wherein you expressed concern
about the content of news stories suggesting that a possible merger between a
rail labor union and the Teamsters might endanger the railroad retirement
system. The news stories have suggested
that the merger, if it were to occur, might make railroad retirement trust
funds available to fund benefits under the Teamsters' pension program. It would not be appropriate for the Railroad
Retirement Board to become involved in internal railroad labor matters,
however, it should be understood that the railroad retirement system is a
creature of Federal law and any change in the system or in the use of trust
funds that pay for benefits under the railroad retirement system would require
an amendment to the Railroad Retirement Act.
Benefits payable under the Railroad Retirement Act are Federal entitlements Benefits payable under the Railroad Retirement Act are Federal entitlements and benefits may be paid only to persons enumerated in the statute (railroad industry employees and their families). Moreover, funds in the railroad retirement trust funds may only be used to pay benefits specified in the Act and to meet administrative expenses of the Railroad Retirement Board and National Railroad Retirement Investment Trust.
A merger between any rail labor union and the Teamsters would not make railroad retirement funds available for payment of benefits under the Teamsters' pension plan. Historically, changes to the Railroad Retirement Act have been based on joint recommendations of rail labor and rail carriers. Rail labor and rail management have worked hard over the years to ensure that the railroad retirement system is financially sound. Moreover, Congress has required that changes in the Railroad Retirement Act be adequately funded.
Given the history of the railroad retirement
system and the close oversight of any amendments to the Railroad Retirement
Act, any change in the system that would jeopardize the current and future
payment of benefits under the Act must be seen as extremely unlikely.
I hope that the above information is of assistance to you in understanding the
railroad retirement system and the benefits provided by the Railroad Retirement
Act.
Sincerely,
Steven A. Bartholow
General Counsel
Comment…It can still happen. All it takes is the majority vote of our
lame-brained congress, and we all know how many dumb things they’ve done in the
past.
Revised: