So now pensions are "paying people for not working"??  The city of
Minneapolis as well as every other public agency, many (actually most I
think) private companies have pension or retirement plans in which the
company pays a percentage but the worker pays a higher percentage.  

Pensions are earned. They are not welfare.  

Given the belief by some (Republicans for the most part) that Social
Security ought to be scrapped, I must ask:  what is that you
conservatives really want to do with people as they age?  Everyone who
does not have the good fortune of being able to accumulate substantial
wealth works until they die? 

Jim Bernstein
Fulton

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf
Of Victoria Heller
Sent: Wednesday, October 01, 2003 3:28 PM
To: Minneapolis Forum
Subject: [Mpls] Thousands lose union jobs because of rising pension
costs....

Our Listmanager posted a link about union contract negotiations at
Border's which reminded me of an important issue that I have
previously written about:  The ticking time bomb of pension
shortfalls - both public and private.

I am reasonably familiar with the City's financial reports, but I have
not found a total dollar figure for pension and healthcare benefits
that are paid to former City employees.  Earlier this year, the Skyway
News reported a massive pension deficit for which the City borrowed
extensively.

It should be noted that Minneapolis property tax collections were
$11,452,000 LESS in 2002 than in 2001.  They dropped from $234,192,000
to $223,740,000.

Someone needs to address the unpleasant subject of pension/healthcare
costs head on - it only worsens as time goes by because of
demographics and added interest expense to the debts.  How many
CURRENT jobs are we willing to sacrifice in order to pay people who
are no longer working?

Minneapolis taxpayers have the right to know how much we pay annually
for pensions and healthcare, and what promises have been made for the
future.

A related article from today's Briefing.com.....

Rising pension costs have taken a significant chunk out of Detroit's
cash flow, and industry analysts expect this to remain a drag on
profitability going forward.

Unlike in 1999, the United Auto Workers (UAW) agreed to provisions for
plant closings or sales, something Ford (F) and DaimlerChrysler (DCX)
have collected on after signing their agreements only two weeks ago.
Ford won clearance to close or sell four plants, affecting 4,500
people, and according to the Wall Street Journal, is preparing plans
to eliminate a total of 12,000 jobs worldwide. As for DaimlerChrysler,
it secured approval for closure of five operations the company has
deemed uncompetitive, and has also indicated its intention to cut
several thousand jobs. Although General Motors (GM) has been mum on
the subject of payroll reductions, it has admitted that it has the
UAW's permission to close three assembly plants.


Vicky Heller
North Oaks

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