March 24, 2006

Pension Funding at Risk in New Jersey Budget Crisis

State workers in New Jersey represented by CWA are fighting for full funding of their pension plan as the governor grapples with the economic fallout from years of Republican tax cuts during the 1990s.

Gov. Jon Corzine, elected last fall with strong union support, has so far directed to the pension fund about two-thirds of the $1.8 billion contribution required this year. But the plan's neglect during the tenure of Republican Gov. Christine Whitman has left it with an unfunded liability of $12 billion to $30 billion, according to varying estimates.

"The $1.8 billion represents just the first down payment on what is really needed to insure that state workers' pensions will be there when they retire," District 1 Vice President Chris Shelton said, blaming the billions in liability on "accounting gimmickry and sheer irresponsibility" of past state leaders.

In addition to the pension crisis, the state budget faces a $2.8 billion shortfall in the coming fiscal year. Corzine is calling for raising the state's sales tax by one point, to 7 percent, among other remedies.

Republicans immediately began trashing Corzine's plan, including a nasty newspaper column by former Gov. Whitman on Friday blasting his effort to balance jobs and services with a mild tax increase. "Rather than eliminating wasteful spending and rooting out waste in government, New Jersey families are being forced to bear the burden of balancing the budget," Whitman wrote.

With a Democratic assembly and Senate and Corzine in the governor's office, CWA state workers are hopeful that the leaders they've supported will stand up to Republican outcry.

Bob Master, CWA District 1 legislative and political director, said workers generally feel Corzine is trying to address the long-term budget problems and, in backing a sales tax hike, has shown a willingness to do what's fair and necessary even if it's politically unpopular. But if that changes or doesn't go far enough, he said workers are prepared to do battle to protect their job security, pensions and benefits.

New Jersey's problems aren't unique. Many states are facing budget and pension crises brought on by factors that include tax cuts and a reduction in federal aid to states. In the wake of reduced and eliminated pension plans at private companies from GM to Verizon, public workers fear that their retirement funds will be next.

"Spiraling health costs, budget shortfalls and a looming wave of baby boomer retirements are prompting policymakers to ask whether government should follow private industry's lead," stated an article in the Atlantic City paper examining the New Jersey crisis.

Largest Group So Far Picks CWA Under N.J. Card Check Law

A unit of 129 professional employees at the New Jersey Housing Mortgage and Finance Agency won CWA representation this week and joined the ranks of Local 1032 under New Jersey's new card check organizing law.

The group is the biggest unit so far to unionize under a law that allows card check union certification for public workers as well as some in the private sector who are not covered by the National Labor Relations Act, according to CWA Organizing Director Ed Sabol. 

The agency is a quasi-state agency, but its employees are considered public workers.  The state Public Employee Relations Commission certified the card count on March 22.

"It was a very hard-fought campaign," reported Sabol, who cited the work of a strong inside committee assisted by Local President Jim Marketti, organizers Mikki Santiago, Patrick Kavanagh and Andy Tarlau, and District 1 Organizing Coordinator Tim Dubnau.

LA Times Reporters Win Top Broun Honors

Matt Lait and Scott Glover won the 2005 Heywood Broun Award for their extensive reporting on a 20-year-old murder case that resulted in even the prosecutor testifying as to his doubts about the defendant's guilt, reported TNG-CWA President Linda Foley.

The two Los Angeles Times reporters wrote "A Case of Doubt" about a wrongly incarcerated man. Their work involved nine months of research, dozens of interviews, a review of thousands of pages of police and court records, and even a reenactment of the murder scene that disproved key prosecution claims.

The Broun award, named for TNG-CWA's founder and first president, includes a plaque and $5,000 cash prize. This year's awards will be presented on May 3 at the union's Freedom Award Fund dinner in Washington, D.C. May 3 also marks World Press Freedom Day, and the Herbert Block Freedom Award, also with a $5,000 prize, will be presented to the International Federation of Journalists Safety Fund for its work to safeguard journalists around the globe.

Two reporters at Knight Ridder's Washington Bureau, Chris Adams and Alison Young, won the Broun award of distinction — which carries a $1,000 prize — for their examination of how the U.S. Department of Veterans Affairs has neglected American soldiers returning home from the war in Iraq.

In the broadcast division, Sasha Aslanian and Mike Edgerly of American Radio Works and Minnesota Public Radio won the award of distinction for their reporting on an environmental hazard in Minnesota resulting from the widespread presence of 3M's former Scotchgard chemicals.

TNG-CWA also recognizes achievement in journalism by a high school and college student with the David S. Barr award. Shahar Smooha, a student journalist at Columbia University, and Sarah A. Halper, a student at the A.W. Dreyfoos School of the Arts, West Palm Beach, Fla., are the winners of a $1,500 and $500 scholarship, respectively.

Heywood Broun was the most prominent founder of the American Newspaper Guild in 1934, a crusading columnist who believed individual journalists have the power to cause social change. The award was first presented for work done in 1941 and is given annually in recognition of "individual journalistic achievement by members of the working media, particularly if it helps right a wrong or correct an injustice."

Researchers Back AFA-CWA Concerns Over Onboard Cell Phones

A research team from Carnegie Mellon University published findings this month bolstering the Association of Flight Attendants-CWA's assertion that use of cell phones on planes while in the air is dangerous.

Alarmingly, despite the fact that cell phone use currently is banned during flight — although the Federal Communications Commission is urging that the ban be lifted — the researchers found that passengers in fact do violate the ban right now. The investigators boarded 37 passenger flights with equipment that measures radio frequency emissions, and they detected that passengers were making between one and four cell phone calls per flight.

The group's research into the effects of personal electronic devices on aircraft electronic systems, according to the Kansas City Star, prompted a warning that "continued use of radio frequency emitting devices such as cell phones will, in all likelihood, someday cause an accident by interfering with critical cockpit instruments."

The team noted that a NASA database of pilot incident reports cited 125 cases where interference from personal electronic devices affected aircraft navigation systems and other cockpit controls.

Last year, AFA-CWA President Pat Friend testified against lifting the ban before a hearing of the U.S. House Aviation Subcommittee, and the union also submitted a filing to the FCC warning of both technical hazards and increased "air rage" incidents if cell phones are allowed during flight.

The Carnegie Mellon study was published this month in a technology magazine, IEEE Spectrum.

IN BRIEF:

  • To help ensure that citizens of New Orleans displaced by last year's hurricanes have an opportunity to vote in city elections set for April 22, CWA has distributed information about registration for absentee ballots to locals in the region and to those CWA members who applied for disaster relief funds.

    Any affected members who did not receive this information should contact Gwend Johnson at 202-434-1509 or by e-mail at Gwendjoh@cwa-union.org.

     
  • During the Clinton administration, a raise in the federal minimum wage and two new tax credits for low-income families helped millions of workers and meant that a parent supporting two children on a minimum wage paycheck was no longer living below the poverty line.

    That's no longer the case. Today, the Economic Policy Institute says, that same family is living at just 89 percent of the poverty level. "A minimum wage increase from $5.15 to $7.25 would return the value of full-time work to just above its 1997 level and renew the nation's commitment to working families," EPI says in its weekly snapshot.

    Sen. Ted Kennedy (D-Mass.), long a champion of raising the wage, is trying again with the Fair Minimum Wage Act. It would raise the wage to $7.25 an hour over two years.

    You can take action to support the bill by clicking the link at the top of the AFL-CIO website, www.aflcio.org . To read the full EPI snapshot, go to http://www.epinet.org/.

     
  • The AFL-CIO's "Who's On Our Side" series has issued its latest report cards, showing how working families are faring in various states under what President George W. Bush claims is a "healthy and vigorous" economy.

    In Missouri, for instance, the state has suffered a net loss of 15,100 jobs — mostly good-paying jobs in manufacturing and communications — since Bush took office. The state's average annual income, adjusted for inflation, has dropped from $49,466 in 2000 to $42,094 in 2004.

    In Wisconsin, 566,000 state residents had no health insurance in 2004 — more than three times as many who had no coverage in 2000. In Minnesota, while private sector wages rose 15 percent between 1998 and 2003, premiums for family health insurance at work jumped by a staggering 90.9 percent.

    Read more and find the full reports on each state at http://www.aflcio.org/.