News from USWA: United Steelworkers of America Calls for Expanded Protection of Retiree Benefits; Federal Government Takes Control of Kaiser Pension Plan.

MINNEAPOLIS -- The United Steelworkers of America (USWA) called for dramatically expanding protection of retiree benefits for American workers after the Pension Benefit Guaranty Corporation (PBGC) took control of the Kaiser Aluminum Pension Plan (KAPP) on October 5. The PBGC, a semi-independent agency of the Federal Government, terminated the KAPP retroactively to April 30, 2004. Kaiser Aluminum has been operating under the protection of federal bankruptcy court since early 2002. According to the PBGC the KAPP was only 48% funded.

David Foster, Director, USWA District #11 and Chairman of the union's negotiating committee with Kaiser Aluminum, said, "The experience of 20,000 Kaiser retirees, both salaried and hourly, underscores the inadequacy of the current system of protecting retiree benefits in America and the continuing disregard of the Bush administration to a growing crisis. The PBGC only partially guarantees benefits and that is particularly true in the case of companies that are failing and shutting down operations, triggering early retirements.

"Hundreds of Kaiser retirees, forced into retirement as a result of the company's bankruptcy and the failed energy policies of the Bush Administration in the Northwest, will now lose thousands of dollars per year of pension income. In addition, they have lost their retiree health insurance program which is not guaranteed by the federal government. Collectively, Kaiser's retirees have seen over one billion dollars of retirement benefits wiped out. The current system of guarantees is woefully inadequate."

Kaiser Aluminum's retirees are located around the country with heavy concentrations in Washington, Ohio, West Virginia, Louisiana, and Maryland. Among the reforms Foster cited as important for America's retirees were 1) raising the PBGC maximums, particularly for younger workers forced into early retirement, 2) providing the PBGC guarantee for early retirement benefits, 3) reforming the phase-in rule, and 4) guaranteeing retiree health insurance benefits. "Legislation correcting these deficiencies was proposed by the late Senator Paul Wellstone from Minnesota in response to the loss of benefits by retired iron ore miners and steelworkers. Since his untimely death," said Foster, "progress has stalled on these issues. The Bush Administration has failed America's retirees."

District #11 of the United Steelworkers of America is based in Minnesota and covers 13 Northwestern states.