Marc Kagan
Mechanical Mtr. "C"

Willie James will promise anything to win this fall's election. He's even promising to win a 20/50, non-contributory pension! But, recently passed legislation affecting the teacher's pension plan shows how empty that promise is.

Teachers, all of whom pay 3%, can retire at 55 if they have 30 years of service. Those that don't have 30 years can either go out at 62 or (early) at 55 by taking a somewhat reduced pension (sort of like the "penalty" for taking Social Security at 62 instead of 65). The new legislation would eliminate this penalty for teachers already older than 55. The handful of teachers who fit into this category is the only ones who would get "something for nothing". The union convinced the Legislature that the plan would cost the State nothing, because the savings from replacing older, higher-paid teachers with new low-paid ones would cover any extra pension costs. Younger teachers would have to "opt in" and pay an additional 8.5%!

During the last five years, the Legislature has changed many pension plans. But even as the stock market has boomed and the pension plans have prospered, the Legislature has consistently refused to distribute this wealth to the workers whose money it is. Teachers, police, sanitation, corrections and transit workers have all had to settle for "pay more to get more" plans.

Now the drumbeat has started that there would-be some "extra" costs to the State in the teacher's plan. It seems it would cost the Board of Education $12 million a year – at about one-fifth of one percent of the Education budget. All of the local newspapers have been blasting the changes as a "giveaway"! And Giuliani, despite a reelection bid that relies on the teacher's union's goodwill, has been leading the fight against the changes. (So much for an "election-year" strategy!) Governor Pataki has indicated it is unlikely he will sign this bill. What does this all mean for transit workers?

The teachers and police are far and away the most powerful unions in Albany. The teachers' union brings 100,000 votes to the polls and runs a renowned Election Day machine. Last year they made $973,000 in campaign contributions and spent $663,000 lobbying in Albany, far more than our much smaller union could ever hope to spend.

Yet even a little improvement, snuck through the Legislature in the dead of night, is now likely to be rejected by Pataki. What hope, then, is there that we can win Pataki's goodwill for 20/50 non-contributory?

There are different strategies for winning real pension improvement. One is to go to Albany and lobby, register voters, make campaign contributions. Under New Directions' leadership, our union can - and will - do this better and more vigorously than Willie James; we are all Tier 3/4 ourselves. But there is no reason to assume this strategy by itself has a prayer of working- not for the TWU, not for any union. New Directions will also pursue a second strategy - one that James and most other union leaders are too timid to pursue. We will rebuild the TWU as a powerful union, powerful not just in Albany but in the workplaces. Then we can go to Albany and deal from strength. When we are strong, we can break down the barrier of "pay more to get more." When we are strong, we can win real pension improvement, just like the TMU did in 1968!

New Directions is in favor of a 20/50, noncontributory pension. We've been calling for it for years. But we oppose playing politics with transit workers' hopes. We oppose making promises that can't be kept, just to win an election. Willie James knows he can't win a 20/50, non-contributory pension. But he doesn't care; he'll promise anything if it will help him win this fall's election.

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