Issues

March 2005

If privatization is so bad for workers, why does the administration insist on it?

Even as President Bush tours the country drumming up support for his private accounts, he has admitted that private accounts will not fix Social Security. Privatization does nothing to address the solvency of the Trust Fund, and in fact will shorten the period of time that Social Security is able to pay out full benefits.

Why does the Administration insist on an overhaul of the system? At the heart of this debate is ideology. According to a leaked memo written by Peter Wehner, White House director of strategic initiatives, "If we [The Administration] succeed in reforming Social Security, it will rank as one of the most significant conservative governing achievements ever…". Part of the conservative ideology is an aversion to social programs that focus on the health and financial security of the public. Despite public outcry, the Administration has made major cuts to social programs concerning health and safety regulations in the workplace, overtime pay, women's issues, etc. Social Security is the last of the great social insurance programs, and the Administration wants to dismantle it.

If this doesn't sounds like a bad deal already, wealthy individuals, not working families, will be the ones to benefit the most from private accounts. Not only are high-income households able to save more, but they also have a greater capacity to shoulder a financial downturn in the economy. Private accounts are a serious risk for working people who depend on a guaranteed source of income in retirement. The volatile nature of the stock market is no guarantee.

Privatization also means huge financial gains for big business on Wall Street. Banks, brokerage firms, and mutual funds will make money off private accounts by taking back a percentage of the account value in management fees. Although there is no definite plan, it is almost certain that private account holders will be required to convert their account money into annuities, which will involve additional fees.

A switch to private accounts will swell the national debt. For the average worker, this means higher interest rates, which, according to a recent report by The Century Foundation, will raise the cost of mortgages, car loans, student loans, credit cards, etc. Even those who choose not to contribute to a private account won't escape these negative effects.

In 2003 Social Security provided guaranteed benefits for 47 million retirees, survivors and disabled workers. The Administration needs to strengthen the Social Security system — not jeopardize the benefits of the people who need them the most.

Sign the AFSCME petition to protect Social Security.

Stay Informed — visit AFSCME's Women's Rights web page for resources and fact sheets that you can use to educate yourself and others.

Watch for AFSCME Women E-Blast updates over the next few weeks, as we work to keep you up-to-date on the pressing issues of the Social Security debate. To sign up for the AFSCME Women E-Blast, contact us online, include your name, local and mailing address.

Fight back against rules changes to FMLA 

Opponents of the Family and Medical Leave Act are pressuring the Department of Labor (DOL) to change the definition of serious illness and restrict the use of intermittent leave, where a worker can take off short periods of time to address health issues for themselves and their families. These changes will cut back on the ability of employees to take job-protected leave and undermine the protections of the FMLA. DOL is expected to propose changes to the law as early as this month.

AFSCME is working with the National Partnership for Women and Families to ensure that the FMLA remains secure. AFSCME and other advocates for working families sent a letter to Congress demanding that they protect the FMLA from any attempt to dismantle the policy. We need your help. Click on the link below to send your own letter to Congress and fight back against efforts to undercut its protections.

Help Protect The Family and Medical Leave Act From Rollbacks.

Senate rejects minimum wage increase 

America's working women were dealt a blow this month when the Senate rejected two amendments that would have increased the federal minimum wage. The first amendment, offered by Senator Ted Kennedy, would have raised the minimum wage from $5.15 an hour to $7.25 an hour over two years. Senator Rick Santorum offered an alternative proposal to raise the minimum wage to $6.25 an hour over 18 months. Both amendments were defeated.

The last increase of the federal minimum wage was in 1996, when it was raised to $5.15 an hour. Today, that increase has been completely eroded by inflation — making the real purchasing power of the minimum wage less than it was before the 1996 increase. Women occupy the majority of jobs paying the minimum wage and have an important stake in the fight for an increase. In fact, 61 percent of those who would benefit from the minimum wage increase are women.

The wage gap — women are "in the red"

On average, women's yearly earnings amount to only 76 percent of men's, down from 77 percent in 2002. As a result of unequal pay, working families lose an average of more than $4,000 each year. If equal pay became a reality, poverty rates would diminish by at least half.

In 2003, union women earned 25 percent more per week than non-union women. Clearly, unionized women have advantages over their non-unionized counterparts. AFSCME members can take a stand for all women. Equal Pay Day is April 19, and traditionally red is worn on this day as a symbol of how far women and minorities are "in the red" with their pay. Encourage members to wear red and speak out against the wage gap.

Despite narrowing the national wage gap, not one state has achieved equal pay for women and men. To see how your state ranks, check out AFL-CIO Public Policy Department's Equal Pay National Summary Table.

For more information or to request an Equal Pay Day Kit with tips on promoting effective solutions to eliminate the wage gap, visit the National Committee on Pay Equity.

Workers Memorial Day is April 28th

Each year we observe Workers Memorial Day to remember those who have been killed or injured on the job, and to stand up together for strong health and safety protections in the workplace. Every year, thousands of workers are killed, and hundreds of thousands suffer serious injuries and illnesses because of unsafe working conditions. The struggle for safe workplaces has become more difficult in recent years as the Bush Administration has blocked or rolled back needed worker protections. This April we encourage you to take part in Workers Memorial Day as we organize and mobilize for safe jobs.

For more information please visit AFSCME's Health and Safety page.

WomENews is produced by the Women's Rights Department and written by Quinci Moody and Amy Vance.

Print Version
 

Mary Goulding
Council 40, Wisconsin

Mary Goulding

"AFSCME women are a force. We push hard for pay equity, economic security, funding for child care and on-the-job training. With our union, there is no stopping us!"