The union pension ponzi scheme 

Last week, I wrote about multiemployer pension plans as they relates to Sen. Bob Casey’s, D-Pa., pension bailout bill. It takes a bit to unpack and I encourage you to read the whole thing, but in a nutshell:

So union management bleeds one company dry, then makes an unrelated company responsible for picking up their pension obligations. Then they start bleeding them dry. When there’s no one left to bleed dry, they have Democratic senators and House members in their pocket to push this bill on the taxpayer.

But wait! It actually gets even more sinister. In April, I wrote about how card check is used as a tool to pressure employers into multiemployer pension plans:

But unions don’t want card check just so they can organize more workplaces and collect more dues — that’s chump change. They want to organize more workplaces so they can then use mandatory binding arbitration to force more businesses into multiemployer pension plans.

Under “last man standing” accounting rules, if you have five companies in a multiemployer pension plan and four of them go bankrupt, the last company standing has to pay for the pension plans of all five companies.

Multiemployer pension liabilities kill companies. Even if your business is fiscally sound, the liability of other companies you’re linked with can severely damage your ability to get a loan or raise capital.

Well, today the Wall Street Journal has an excellent editorial on Casey’s bill that ties many of these threads together. It’s well worth reading:

Union chiefs prefer the power that comes with managing huge pension investments—even if they’re failing. They are now counting on Mr. Casey to preserve their power by making taxpayers pick up the tab for years of pension mismanagement. With the union priority of “card check” stalled, word is that the Casey bailout is Big Labor’s consolation prize. Taxpayers should let Congress know they don’t want to pay.

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Mark Hemingway

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