Labor talks Social Security with area politicians


For the most part, Oregon's and southwest Washington's congressional delegation are on the same page as organized labor when it comes to "fixing" this nation's Social Security system.

The Northwest Oregon Labor Council (NOLC) and Labor's Community Service Agency held a "community summit" on Social Security Feb. 17 in Portland in which they invited lawmakers within their jurisdiction to listen to ideas and respond to a series of questions on how labor would shore up the system.

Congressman David Wu, D-First District, and Congresswoman Darlene Hooley, D-Fifth District, attended the summit, while Congressmen Earl Blumenauer, D-First District, Brian Baird, D-Third District, Washington, and Oregon Democratic Senator Ron Wyden sent labor liaisons, aides and letters. Republican Senator Gordon Smith responded by letter.

The AFL-CIO believes special interest groups are deliberately deepening public concerns about Social Security's future to undermine support for the program. Union officials say Wall Street money managers and anti-government ideologues would like to replace Social Security with risky and expensive private investment accounts that would require raising the retirement age, cutting benefits, reducing Social Security's protection against inflation, raising taxes - or a combination of all four.

The AFL-CIO said that Social Security will be there for young workers "if citizens insist that it will be there."

"The next generation thinks they will see an extraterrestial before they see a Social Security check," said Senator Wyden, in a letter read by his labor liaison, Al Panek, a former Teamsters official.

But the national labor federation believes there are plenty of things policymakers can do to make the necessary repairs to Social Security, and they've got time to do them. "If lawmakers choose to make these adjustments, Social Security will be around for generations to come," the AFL-CIO said.

Social Security trustees project that the Social Security trust funds - now growing by $90 billion a year - will be drawn down to zero in 2032 if no changes are made. But after 2032, Social Security will not be broke, the AFL-CIO said. Social Security will continue to collect payroll taxes from workers and employers. In fact, Social Security payroll taxes will be sufficient to finance about 70 percent of the payments that will be owed to the program's beneficiaries.

"With responsible modifications to the program, Social Security will be able to continue meeting 100 percent of its payment obligations to retirees, disabled workers and survivors," the national labor federation said.

NOLC offered a few ideas for lawmakers and citizens to consider for strengthening Social Security. It then asked lawmakers whether or not they supported seven specific ideas. NOLC asked:

Do you support and will you vote for:

* No cuts in benefits.

* No diverting of Social Security dollars to private accounts.

* Not reducing the core social insurance for retirement, disability and survivors.

* No raise in the age for eligibility.

* Increase the cap on income subject to the Social Security tax.

* Use existing government budget surpluses for strengthening the Social Security trust fund.

* Raise the minimum wage and right to organize so that workers can benefit from unionization and overall contributions to Social Security will rise.

Senators Wyden and Smith were noncommittal in their answers, although both basically said that any reforms should not create distortions or inequities that take away from the fairness of the overall system, or from assuring a basic benefit for retirement income. How that happens is still open for debate.

"I am hopeful that we can join the president in finding a way to save Social Security, to join the next generation with the aging generation, to make sure that no one's taxes are raised and no one's benefits are cut," Smith wrote.

U.S. Representatives Wu, Hooley, Blumenauer and Baird were more forthcoming with their answers. The four Democrats were supportive of labor's position on all but a couple of points, and with those they still had some questions that needed answers.

Wu, Hooley and Baird were undecided on whether or not to increase the cap on income, while Hooley said on its face she doesn't support cutting Social Security benefits but she couldn't say absolutely no because "as a last resort" it might be warranted.

All of the U.S. representatives oppose private accounts and favor using existing budget surpluses to strengthen the trust fund. They also support raising the minimum wage and workforce unionization.

Wu said that analysts' projections of a Social Security shortfall are based on a 1.5 percent growth rate in the U.S.'s gross national product over the next 33 years. "The historic growth rate the last 75 years in this country is 3 percent," he said. "So, if we can grow the economy by 1 percent more (than projected) we don't need to make any cuts."

Wu said freshman lawmakers are looking hard at the upcoming Social Security debate. "We want to make sure (Congress) doesn't make unintentional, unnecessary cuts that will hurt citizens unnecessarily, when the answer is we just have to grow the economy another 1 percent," he said.

Social Security is an extremely complicated issue, which means different things to different people. It is for this reason that lawmakers need to hear the wants and needs of all workers.

"Phone calls, letters and e-mails from constituents make a big difference in the minds of lawmakers," said Harry Glaus, labor liaison for Washington's Baird. "There is no substitute for personal contact. It can make the difference."

The AFL-CIO is asking all union members, families and friends to call their representatives and ask them to protect the Social Security retirement system. Lawmakers can be reached toll-free at 1-877-722-7494.


March 5, 1999 issue

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