Feds probe union pension scam

Feds probe union pension scam

Federal law enforcement officials have issued subpoenas and opened a criminal investigation to determine how union officials were able to work one day as a substitute teacher yet be eligible for $100,000 pension plan -- for life. From the Chicago Tribune: Federal authorities have begun a criminal investigation into how nearly a dozen union officials became eligible for inflated city pensions, according to subpoenas obtained by the Tribune and WGN-TV through an open-records request. The Chicago municipal employees and laborers pension funds each received subpoenas from a federal grand jury in October seeking "records pursuant to an official criminal investigation." The request seeks documentation on 11 labor leaders who appeared in reports from a joint Tribune/WGN-TV investigation. The reports focused on a 1991 law that allowed union leaders who once worked for the city to receive credit in public pension plans for their private union work. When they retire, the union officials' pensions aren't based on their old city paychecks but on their much higher union salaries. That opened the door for them to land public pensions that far exceeded their pay as city employees — even as they continued to earn lucrative salaries from their unions. At least eight union officials named in the subpoena who either receive city pensions or are eligible for them also earned credit in union pension funds for the same period of work, despite a state law that was supposed to prevent that. The joint investigation found that some of those labor leaders were participating in up to three pension funds at the same time, accruing retirement benefits that reached as high $500,000 a year.

Big Labor economist leaves out important details in Right To Work debate

Big Labor’s favorite economists Gordon Lafer’s ‘study’ “Right To Work, The wrong answer for Michigan’s economy” lists several companies that chose Michigan over Right To Work states, but he left out important details according to Tom Gantert at CAPCON.  Lafer fails to mention that Right To Work states offered no incentives, but Michigan offered millions in tax-incentives. Not only that, Lafer uses a laughable term to describe ‘forced-unionism states;’ he refers to them as “free bargaining states.”  As most know, unions are still able to bargain in Right To Work states.  But, what union bosses cannot do is force employees to pay union fees against their will.  For Lafer to refer to compulsory-unionism states as ‘free bargaining’ illustrates the insincerity of his analysis. From CAPCON: Lafer wrote, “Indeed, a series of recent corporate announcements make clear that many auto industry companies continue to prefer Michigan over right-to-work competitors …” But Lafer never mentioned that some of those businesses cited in his report received deals for millions of dollars in tax incentives to locate in Michigan while the competing states offered no incentives, according to research done by Michigan Capitol Confidential. In fact, even the Michigan Economic Development Corp. says those companies wouldn’t have picked this state had it not been for the MEDC’s handouts. MEDC memos received in a Freedom of Information Act request involving the businesses stated in Lafer’s report paint a picture of a state that has difficulty competing with right-to-work states without offering tax breaks. The memos refer to lower taxes and personnel costs in right-to-work states as a reason Michigan has to offer millions in incentives to attract the businesses. “He (Lafer) is listing successes that are actually evidence of failure,” said James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy.