American workers are increasingly demanding that their
employers restore their traditional defined benefit pension plans and are
making the issue a principal ask in collective bargaining negotiations.
The latest example of how highly workers value pensions was
the overwhelming (64%) rejection by rank-and-file members of the International
Association of Machinists and Aerospace Workers (IAM) in Seattle, WA, of a
tentative bargaining agreement negotiated by their union with Boeing.
In turning down an agreement that included increased wages
and increased employer contributions to their 401(k), the Washington Post reported that “some workers said they were voting to
reject the deal because the wage gains fell short. Many were also hoping for
the restoration of a pension program.”
“The fact that IAM members are continuing to demand a defined
benefit plan shows that they recognize the inherent inadequacies of 401(k)
plans that have failed millions of people. Pension plans provide reliable
guaranteed lifetime benefits, while 401(k)s put all the risks and
responsibilities on to individuals. So it makes sense that they’re advocating
for better benefits,” said Pension Rights Center Executive Director Karen
Friedman.
Having a secure retirement is part of the American dream and
now unions are leading the way in stimulating a debate on this issue. “Fighting
for defined benefit plans is not just important in collective bargaining, but
also represents a paramount goal for the country. Everyone needs a secure,
adequate lifetime retirement income and this needs to be a priority for
Congress,” Friedman added.
by David Brandolph, Pension Rights Center
Boeing Workers Nix Tentative Contract, Demand Pension
Restoration
