All posts by Bob

We the People, Not We the Corporations

On January 21, 2010, with its ruling in Citizens United v. Federal Election Commission, the Supreme Court ruled that corporations are persons, entitled by the U.S. Constitution to buy elections and run our government. Human beings are people; corporations are legal fictions.

We, the People of the United States of America, reject the U.S. Supreme Court’s ruling in Citizens United and other related cases, and move to amend our Constitution to firmly establish that money is not speech, and that human beings, not corporations, are persons entitled to constitutional rights.

The Supreme Court is misguided in principle, and wrong on the law. In a democracy, the people rule.

We Move to Amend.

“. . . corporations have no consciences, no beliefs, no feelings, no thoughts, no desires. Corporations help structure and facilitate the activities of human beings, to be sure, and their ‘personhood’ often serves as a useful legal fiction. But they are not themselves members of “We the People” by whom and for whom our Constitution was established.”

~Supreme Court Justice Stevens, January 2010

If This Case Heads to the Supreme Court, Unions Could Be Over

By Joseph Williams | Takepart.com


For years, Rebecca Friedrichs, a veteran teacher in Buena Park, California, a suburb of Los Angeles, had monthly union dues docked from her paycheck, even though she didn’t like the union’s positions on school choice and other education reforms. What she theoretically got in return—collective bargaining for pay raises, benefits, and job security that comes with representation by one of the most powerful unions in her profession—wasn’t a selling point; her three years as a full-fledged board member, trying to work within the system, was more frustrating than empowering.

That’s why, in a real-world civics lesson, this week she and nine other teachers petitioned the U.S. Supreme Court to hear their arguments against the law and overturn it.

More is at stake than just the $600 to $1,000 Friedrichs and her colleagues paid in union dues each year. If the court agrees with them and overturns the law, the ruling would deal a crippling blow not only to the 295,000-member California Teachers Association but also to the national organized-labor movement; 26 states have similar laws for public-employee unions.

Friedrichs believes teachers should have the freedom to decide for themselves if they’ll join the union, especially if its positions cut against what she thinks most teachers want.

“When unions use our dues money to block sensible reform and protect teachers who clearly do not belong in the classroom, it’s time to say enough is enough,” Friedrichs said in a statement .

At issue is California’s “agency shop” law, which forces members of a unionized profession to pay dues even if they don’t support or have membership in the union. Teachers in California can opt out of paying CTA dues spent on political efforts, like lobbying, by asking for a refund, but they can’t opt out of dues used for collective bargaining.

Friedrich and her colleagues, however, argue that the opt-out process is so complex they end up contributing hundreds of dollars to political activities with which they disagreed.

“The gist [of the petition] is claiming that compulsory union dues violates the First Amendment right for employees to decide for themselves what causes to support,” said Terry Pell, president of Center for Individual Rights. The conservative-leaning organization is backing Friedrichs and her co-plaintiffs, along with Christian Educators Association International, in the court challenge.

“We’re not challenging the union’s authority to be the collective bargaining agent” for teachers, and CTA could still do that even if the Supreme Court ruled against it, Pell said. The problem, he said, is CTA takes “very political positions” on education issues—school choice, for example, or teacher tenure—that some of its members don’t like and spends dues backing partisan election campaigns.

“The First Amendment doesn’t allow the state to compel speech. It can’t force individuals to speak out, and it can’t prevent individuals from speaking when they do want to speak,” Pell said. “The only question is whether the union fairly and accurately represents the interest of its members.”

The high court has heard a case like this before. Last year, the justices ruled on Harris v. Quinn, which challenged Illinois’ version of California’s “agency shop” law. The court upheld the Illinois law, but just barely: It declared unions couldn’t collect dues from employees who didn’t want to join and signaled it was open to another, more focused challenge to the law.

Last year, a federal court in California rejected Friedrichs’ lawsuit against the CTA, setting up the Supreme Court appeal. In a statement afterward, union president Dean E. Vogel praised the ruling and, referencing the Quinn decision, said his organization works tirelessly to improve working conditions for all teachers, even nonmembers.

“Because nonmembers benefit from this work to ensure they have quality teaching and learning conditions, the U.S. Supreme Court has repeatedly ruled it is only fair that they contribute toward these expenses,” he said. “We are confident that this attempt by forces to use the courts to gravely diminish the voices of CTA and other unions will not succeed if appealed, as we expect this case will be.”

Nevertheless, if the law is overturned, it would be a devastating, if ironic, strike against the labor movement at a time when income inequality is a hot topic among politicians in Washington.

Statistics show that unions helped build and sustain the middle class. As membership increased in the early part of last century, wages for all workers climbed upward. Yet as right-to-work laws have been enacted across the nation over the last few decades, union membership has dropped, and overall wages for American workers have barely kept pace with inflation or even have declined.

Friedrichs believes a greater principle is at stake.

“At the turn of the 20th century, unions provided a collective voice for the good of employees, but today, many employees feel trapped within public sector unions,” she wrote in an editorial letter published in the Orange County Register last summer. “The California Teachers Association has gotten so out of touch that union officials bully teachers (like the plaintiffs in our case) who dare to question union politics and policies.”

If the Supreme Court takes the Friedrichs case, Pell said, it will likely schedule it for the term beginning in October. A decision would likely be handed down by June 2016, and he’s optimistic the justices would see things their way.

Still, “you never know what the court will do,” said Pell, “until it does it.”

Dream On Mr. Reich Until “Citizens United” Is Repealed, No Change

Robert Reich
The Republican congress that takes over this week will try to drive a generational wedge through the electorate. They’re cooking up arguments that the nation can’t afford to provide our children adequate health care and education if we’re going to meet the demands of the baby-boomer elderly for Medicare and Social Security (thereby trying to justify cuts in all these programs even as they cut taxes on the wealthy and corporations). This is utter nonsense, for the following reasons:
(1) Social Security’s pending shortfalls don’t begin for another 20 years, and they can be avoided entirely if the cap on income subject to Social Security payroll taxes (for 2015, $118,500) is lifted.
(2) Medicare’s costs are slowing, and they’d be even lower if the government allowed Medicare to use its bargaining power to negotiate lower prices from drug companies and other suppliers.
(3) The best way to assure there’s enough money for our childrens’ health care and education is to raise taxes on the wealthy, who have never been as rich. State and federal taxes on the wealthy now take a lower percentage of their income than at any time since the 1920s.
Don’t succumb to the Republican’s upcoming generational-divide tactics. The nation as a whole is wealthy enough to provide for both our children and our seniors in years to come, if the rich and corporations pay their fair shares.

Your New Congress at Work for YOU!

What Retirees Need to Know about the New Federal Pension Rules
Mark Miller / Reuters
Dec. 18, 2014
     Only a small percentage of retirees are directly affected by the new rule.
But future legislation may lead to more pension cutbacks.
The last-minute deal to allow retiree pension benefit cuts as part of the federal spending bill for 2015 passed by Congress last week has set off shock waves in the U.S. retirement
Buried in the $1.1 trillion “Cromnibus” legislation signed this week by President Barack Obama was a provision that aims to head off a looming implosion of multiemployer pension plans—traditional defined benefit plans jointly funded by groups of employers. The pension reforms affect only retirees in struggling multiemployer pension plans, but any retiree living on a defined benefit pension could rightly wonder: Am I next
“Even people who aren’t impacted directly by this would have to ask themselves: If they’re doing that, what’s to stop them from doing it to me?” says Jeff Snyder, vice president of Cammack Retirement Group, a consulting and investment advisory firm that works with retirement plans.
The answer: plenty. Private sector pensions are governed by the Employee Retirement Income Security Act (ERISA), which prevents cuts for retirees in most cases. The new legislation doesn’t affect private sector workers in single-employer plans. Workers and retirees in public sector pension plans also are not affected by the law.
Here are answers to some of the key questions workers and retirees should be asking in the legislation’s wake.
Q: Cutting benefits for people who already are retired seems unfair. Why was this done?
A: Proponents argue it was better to preserve some pension benefit for workers in the most troubled plans rather than letting plans collapse. The multiemployer plans are backstopped by the Pension Benefit Guaranty Corp (PBGC), the federally sponsored agency that insures private sector pensions. The multiemployer fund was on track to run out of money within 10 years—a date that could be hastened if healthy companies withdraw from their plans. If the multiemployer backup system had been allowed to collapse, pensioners would have been left with no benefit.
Opponents, including AARP and the Pension Rights Center, argued that cutting benefits for current retirees was draconian and established a bad precedent.
Q: Who will be affected by the new law? If I have a traditional pension, should I worry?
A: Only pensioners in multiemployer plans are at risk, and even there, the risk is limited to retirees in “red zone” plans—those that are severely underfunded. Of the 10 million participants in multiemployer plans, perhaps 1 million will see some cuts. The new law also prohibits any cuts for beneficiaries over age 80, or who receive a disability pension.
Q: What will be the size of the cuts?
A: That is up to plan trustees. However, the maximum cuts permitted under the law are dramatic. Many retirees in these troubled plans were well-paid union workers who receive substantial pension benefits. For a retiree with 25 years of service and a $25,000 annual benefit, the maximum annual cut permitted under the law is $13,200, according to a cutback calculator at the Pension Rights Center’s website.
The cuts must be approved by a majority of all the active and retired workers in a plan (not just a majority of those who vote).
Q: How do I determine if I’m at risk?
A: Plan sponsors are required to send out an annual funding notice indicating the funding status of your program. Plans in the red zone must send workers a “critical status alert.” If you’re in doubt, Snyder suggests, “just call your retirement plan administrator,” Snyder says. “Simply ask, if you have cause for concern. Is your plan underfunded?”
The U.S. Department of Labor’s website maintains a list of plans on the critical list.
Q: How quickly would the cuts be made?
A: If a plan’s trustees decide to make cuts, a notice would be sent to workers. Snyder says implementation would take at least six months, and might require “a year or more.”
Q: Am I safe if I am in a single employer pension plan?
A: When the PBGC takes over a private sector single employer plan, about 85% of beneficiaries receive the full amount of their promised benefit. The maximum benefit paid by PBGC this year is $59,320.
Q: Does this law make it more likely that we’ll see efforts to cut other retiree benefits?
A: That will depend on the political climate in Washington, and in statehouses across the country. In a previous column I argued that the midterm elections results boost the odds of attacks on public sector pensions, Social Security and Medicare.
Sadly, the Cromnibus deal should serve as a warning that full pension benefits aren’t a sure thing anymore. So having a Plan B makes sense. “If you have a defined benefit pension, great,” Snyder says. “But you should still be putting money away to make sure you have something to rely on in the future.”