FRONT PAGE CONTRIBUTOR
The Mother of ALL Union Bailouts: $165 Billion for union pensions
By comparison, the bailout of the United Auto Workers and its corporate co-horts
Government General Motors and Chrysler may be “chump change,” only costing American taxpayers around $100 to $130 billion.
A Democratic senator is introducing legislation for a bailout of troubled union pension funds. If passed, the bill could put another $165 billion in liabilities on the shoulders of American taxpayers.
The bill, which would put the Pension Benefit Guarantee Corporation behind struggling pensions for union workers, is being introduced by Senator Bob Casey, (D-Pa.), who says it will save jobs and help people.
As FOX Business Network’s Gerri Willis reported Monday, these pensions are in bad shape; as of 2006, well before the market dropped and recession began, only 6% of these funds were doing well.
Although right now taxpayers could possibly be on the hook for $165 billion, the liability could essentially be unlimited because these pensions have to be paid out until the workers die.
Union multi-employer pension funds are sinking faster than the Titanic and have been for years. But the Wall Street meltdown is not the main culprit, unions are.
Many of the union pensions that Congress is talking about bailing out are hemorrhaging cash because so many unionized companies have been driven out of business, as has been the case in the unionized trucking industry.
Although Democrats are doing all they can to prop up unions these days (see Weekend at Bernie’s for reference), American taxpayers should not be put on the hook for another union bailout, be it for $1 or $165 billion.
“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.”Thomas Paine, December 23, 1776
For more news and views on today’s unions, go to LaborUnionReport.com.