Archive for the 'From the President' Category

Standing for Meaningful Health Reform

September 15th, 2009

This entry by AFSCME President Gerald W. McEntee is cross-posted from Huffington Post and Firedoglake.

The Senate Finance Committee is getting ready to debate a health care bill that does not come close to meeting the needs of America’s working families. Nor does it meet the standards President Obama laid out in his address last week to Congress. There is no employer mandate, no public option, no help for retirees. The bill imposes substantial costs on the states, weakens state insurance regulations and taxes health plans that provide benefits for many middle class families. This bill fails to provide good, affordable coverage and does not protect families from medical bankruptcy. It is unacceptable.

Wendell Potter, a former CIGNA executive, calls the Finance Committee bill an “absolute gift” to the insurance industry. It requires families to purchase coverage but doesn’t require the industry to provide coverage that is adequate and affordable. That’s wrong and it’s a political train wreck. Requiring families to get insurance they cannot afford or fining them thousands of dollars if they don’t will create a huge political backlash.

Everyone who believes in meaningful health care reform should call their Senator today, especially those who serve on the Finance Committee, to tell them that the bill being considered there must be fixed. It has been written to appease a small group of Republicans who will not vote for it. Democrats can do better and they must do better. Reforming health care is too important to do half way.

The problems with the current U.S. health care system are linked to the overall problems with our economy. As our health care costs have increased, our economic bottom lines have plunged downward. That threatens the economic security of working families, strains state and federal budgets, and reduces the competitiveness of American businesses. Working families are paying more and getting less – while being forced to fight with insurance companies to get the care they need and get their bills paid.

We know that President Obama gets the connection between our broken health care system and our failing economy. That is why he is so committed to achieving comprehensive health care reform this year. We share the President’s passionate belief that no one in America should have to go without necessary health care. No one should be denied medicine or treatment because of insurance company whims or tricks. And no one should go bankrupt to pay for decent care.

AFSCME is working to stabilize the system of employment-based health coverage and ensure that employers assume responsibility for contributing to the cost of coverage. We are fighting to keep a public plan option to inject competition into the system. That way working families will still be able to keep the coverage they have, but their costs will be lower because of the competition provided by an administratively-efficient public plan. We also support making needed reforms to the private health insurance markets to make sure that no one is denied coverage or charged more because of their health status or gender.

As a case in point, the most expensive health coverage plan for state employees is in Nebraska, where premiums for family coverage run just under $25,000. It’s no coincidence that the last time this plan was put out for a bid, only one insurer bid on it. In North Dakota, where Blue Cross/Blue Shield is the state’s dominant health insurer, member premiums have skyrocketed. At the same time, insurance company executives have given themselves nearly $15 million in bonuses, regardless of their performance. In fact, as The Fargo Forum reported last week, their compensation incentive program “was rigged” to pay out even when their company suffered losses. That’s an outrage.

The bottom line for us is when there is little or no competition, our costs go up, and this is why we need a public plan option.

Last week and today at the AFL-CIO Convention in Pittsburgh, President Obama said that enough is enough. Enough of inadequate health care and high costs. Enough of the political games. Enough of the half measures and delay that keep America’s families from getting what they need.

The President made it clear that America can’t wait for meaningful reform that lowers costs, improves quality, covers more and stops insurance company abuses. That’s why AFSCME joins him in this fight. AFSCME members know that the health of our family budgets, our federal budget and our very economy depends on health care reform this year. And we also know that the President and Congress can’t get it done without the leadership and support of labor.

AFSCME has committed an unprecedented amount of resources and energy to this effort — including ads, canvassing, phone calls, online activities and the deployment of dozens of campaign field organizers to key states. AFSCME is doing all we can to ensure that, as President Obama said, he will be the last president forced to make the case for health care reform. We’re going to hold Congress accountable and take on the insurance industry.

Now Is the Season for Action

September 10th, 2009

Addressing a joint session of Congress on Wednesday night, President Obama made the case for meaningful health care reform. The speech “re-energized the forces for reform and has set a clear path for victory,” says AFSCME President Gerald W. McEntee, and “we’re going to do our part and hold Congress accountable.”

“The time has come for Congress to put people above profits and enact real health care reform. We’re also going to pull out all the stops to take on the insurance industry. The President’s right – ‘The time for games has passed – now is the season for action.’”

In his speech, President Obama reiterated his support for a public option while forcefully dispelling the fear and misrepresentations which have been spread by the opponents of reform. And by declaring health care reform a moral necessity, said McEntee, he raised the stakes for all Americans.

“We’re with him. AFSCME has committed an unprecedented amount of resources and energy to this effort – including ads, canvassing, phone calls, online activities and the deployment of dozens of campaign field organizers to key states – and we’re going to continue to do all we can to ensure that, as President Obama said, he becomes the last president to have to make the case for health care reform.”

Read President McEntee’s full statement, and learn more about the Obama plan for health care reform on whitehouse.gov.

A Message for Labor Day

September 4th, 2009

AFSCME President Gerald W. McEntee

On Labor Day 2009, we honor the tremendous contributions and sacrifices of workers who built this great nation.  We must never forget that workers organized, marched, went on strike, and even gave their lives in the struggles that resulted in the 40-hour workweek, safe working conditions, secure retirement benefits and the right to a voice on the job.  Workers are the bedrock of this economy and we have been at the heart of every movement for social justice and civil rights in our country.

This is the first Labor Day in decades that we celebrate without the voice and leadership of our beloved friend Sen. Ted Kennedy.  On every issue that we care about, Senator Kennedy was at the forefront.  From civil rights to health care, from education to national security, right to the end, Ted was our strongest advocate.  On this Labor Day, we mourn the passing of a giant — the Lion of the Senate.

America’s working families face significant challenges today: the worst economy in decades, the health care crisis, massive job layoffs, and dwindling wages as living expenses rise. A new AFL-CIO study shows that young workers are less likely to have health care insurance or economic security than those 10 years ago, and one-third still live in their parents’ home.

The cost of health care coverage has skyrocketed.  It threatens the economic security of working families… strains state and federal budgets… and reduces the competitiveness of American businesses, especially those that compete in the global market.  Shamefully, more than 46 million people have no coverage at all.  Those fortunate enough to have coverage too often find it’s inadequate. It’s not surprising, then, that medical expenses are the leading cause of personal bankruptcy and one of the main reasons families lose their homes in foreclosures.

Reigning in health care expenses will help get our economy back on track, and we must all take part in the battle for reform. We must also do everything we can to help workers gain a voice in the workplace. By exercising our power at the bargaining table, unions were integral to expanding the middle class. Today, too many workers lack the power that we have. As activists and organizers, it is our duty to stand up for those workers who do not have a voice as passionately as we stand up for the members of our union.

None of these challenges are insurmountable if we, as union members, as hard working Americans, come together — work together — to find solutions. The labor movement has done so in every decade, and today, we can do no less. We must be driven by what we’ve achieved in the past to move forward and build a stronger, more equitable nation. As the late journalist Murray Kempton said, “The union is not for yourself but for your children…. It does not arise to avenge the past but to claim the future.”

At our heart, that’s what we have always been about: the future. In fact, our optimism has been the reason for our success; it has inspired us to create what did not exist. The best way to remember Senator Kennedy, to honor America’s workers and to ensure a bright future for working families is to continue the work we’ve done so valiantly.

So this Labor Day, let’s recommit ourselves to helping other workers organize and fight for their rights.  Let’s work together to win meaningful reforms that ensure access to quality, affordable health care.  Let’s stand together for a better economy with good jobs and the right to join a union without intimidation. Let’s dedicate ourselves to creating an America that lives up to its core values and its boldest promises for all of us.

The Death of a Friend

August 27th, 2009
Sen. Kennedy
Sen. Kennedy visited the AFSCME offices in 2007 to congratulate Pres. McEntee on 50 years with the union. (Photo by Jay Mallin)

This entry by AFSCME President Gerald W. McEntee is cross-posted from Huffington Post and Firedoglake.

In nearly 47 years spent serving the American people, Ted Kennedy never stepped away from a fight, never stopped being a champion of the middle class, never ceased being a friend to labor and working families. From civil rights to health care, right until the end, he was our strongest advocate. We will always remember him. In his memory, we will continue to pursue our shared dream of opportunity for all.

Senator Kennedy’s congressional accomplishments were monumental, and health care was a significant theme throughout his career. He first advocated for health care reform in 1966 when he proposed amending the Economic Opportunity Act. In 1972, he created and ushered through the Congress a program focused on nutrition and health care for low-income women and children known as WIC. In 1997, he carried the banner high for the children’s health care program, S-CHIP. He even made a surprise return to the Senate last summer to cast the decisive vote for the Democrats on a Medicare bill.

Ted was always there to remind us, when too many had forgotten, that health care for all Americans was not a privilege but a right. This is his legacy. He said that quality, affordable health care for all Americans is “the cause of my life.” And he fervently believed, “Quality care shouldn’t depend on your financial resources, or the type of job you have, or the medical condition you face.”

Known as the “Lion of the Senate,” we counted on Ted to fight for fairness in the workplace and serve as a voice for those whose labor makes this country great. He crusaded for the best, most comprehensive plans on immigration, housing discrimination, rights for the disabled, poor children and struggling young adults hoping to attend college. He never sought credit or recognition. When he co-authored the sweeping Patients’ Bill of Rights, he even asked that Sen. John McCain’s name appear first and his last.

Beyond what he achieved on the national stage, Ted was an empathetic and caring man. When my father died, Ted was the first person to reach out to me in my time of sorrow. He stayed in contact with families who lost loved ones on 9/11 and remained in touch long after the cameras were gone. The tragedies he experienced made him especially compassionate when others endured their own hardships.

For me this loss is particularly difficult. He was not just an ally, but a dear friend. Ted’s great voice has been silenced, but we will forever remember what he gave all of us: his life, his passion, his commitment to a more fair and equitable nation. In remembrance of him, we must all keep fighting for the causes he championed so well and rededicate ourselves to winning national health care reform and lifting the lives of all Americans.

Congratulations Justice Sotomayor!

August 6th, 2009

Following the U.S. Senate’s 68 to 31 vote to confirm Judge Sonia Sotomayor to the U.S. Supreme Court, AFSCME President Gerald W. McEntee released the following statement:

“This is an exciting and historic day for all Americans. Judge Sonia Sotomayor is exactly the kind of experienced, capable and fair jurist the working men and women of this nation need.

“She has the experience, skills and judgment needed to defend the Constitution, protect the rights of all Americans and uphold the law. As a Supreme Court Justice, Judge Sotomayor will also bring a welcome perspective as the first Hispanic and the first woman of color to serve on the nation’s highest court.

“With their votes against confirmation today, thirty-one Republican Senators failed in their historic duty to confirm qualified, capable jurists to the Supreme Court. They put politics before duty by ignoring Judge Sotomayor’s outstanding educational credentials; her distinguished service; and her consistent and fair interpretation of the laws.”

McEntee on The Stephanie Miller Show

August 5th, 2009

On Tuesday, AFSCME President Gerald W. McEntee discussed the need for grassroots action in support of health care reform with Stephanie Miller, the host of radio’s The Stephanie Miller Show.

Listen to the interview here (5 min. 38 sec.):

Stop Rewarding Corporate Execs for Failure

July 31st, 2009

AFSCME filed the first shareholder “say-on-pay” proposals in 2005. In the four years since then, we’ve put together a broad coalition of investors fighting to get shareholders a voice on executive compensation. The U.S. House of Representatives is expected later today to vote on “say-on-pay” legislation crafted by Chairman Barney Frank (D-MA).

In this morning’s issue of the Capitol Hill newspaper The Hill, AFSCME President Gerald McEntee urges Congress to pass this bill as an important step in the effort to hold corporations accountable to shareholders.

Ridiculous bonuses justify say-on-pay for shareholders

By Gerald W. McEntee

While America’s families continue to be battered by unemployment, foreclosures and other pains associated with the worst recession in decades, Wall Street executives are raking in the big bucks again.

Goldman Sachs is preparing to hand out $6.65 billion in salary and bonuses for the second quarter after getting funds from the taxpayer through the Troubled Assets Relief Program. JPMorgan put aside $14 billion to pay top executives and traders. That’s just ridiculous. And since excessive executive compensation has flourished even when businesses are failing, shareholders need a say-on-pay.

President Barack Obama earlier this year decried the “culture of narrow self-interest and short-term gain at the expense of everything else” that has fostered corporate irresponsibility. CEOs like Martin J. Sullivan, who ran American International Group (AIG), the giant insurance and financial services firm, into the ground, illustrate the problem in our boardrooms. He was fired, but walked away with a severance package estimated at $47 million.

He wasn’t alone. While the economy was thrown into turmoil and people across the nation lost their life savings, AIG executives continued to receive hefty bonuses. We’ve all taken a hit thanks to AIG’s greedy manipulation of exotic investment products. The perverse system of excessive pay, even for failure, created incentives for foolish risk-taking by major financial institutions.

For years, AFSCME has worked to rein in the excessive paychecks unrelated to long-term performance that unaccountable corporate boards of directors have given many of America’s CEOs. We’ve argued that boards cheat shareholders and workers when they cloak their operations in secrecy or are unaccountable to shareholders.

Responsibility for the worst economic collapse since the Great Depression can be laid at the feet of those CEOs who put short-term profits ahead of long-term and sustainable wealth creation. And that threatens the interests of shareholders, including working families whose savings are invested in the market. America’s shareholders need sound management, accountability and the right to nominate members of the boards of the corporations in which they invest.

That’s why AFSCME supports House Financial Services Committee Chairman Barney Frank’s (D-Mass.) say-on-pay legislation. That bill, which passed the Financial Services panel Tuesday, would give shareholders an advisory vote on compensation packages and on “golden parachutes,” and would make compensation committees more independent from management. This legislation is an important part of the broad financial reform effort necessary to re-regulate the financial industry and protect shareholders.

A key step to fixing our economy is making sure that the interests of shareholders and stakeholders are considered in corporate board rooms. We believe that Rep. Frank’s proposal to give shareholders a say-on-pay will help hold corporations and their leadership responsible and accountable to their owners — company stockholders. It’s time to stop rewarding corporate executives for failure. It’s time to make American companies transparent and accountable. We need bold action to bring these rampant abuses to an end.

From Gerald W. McEntee, president, American Federation of State, County and Municipal Employees, Washington

The AFSCME employee pension plans own stock in Goldman Sachs, JPMorgan and AIG.

No Tax on Health Benefits

July 30th, 2009

AFSCME President Gerald W. McEntee, in a story on National Public Radio this morning, spoke out against taxing workers on their employer-provided health insurance.

Gerald McEntee, president of the American Federation of State, County and Municipal Employees, says many of the public employees he represents have plans that do cost $20,000 — but only because they gave up other things in contract negotiations.

“They have struggled,” he says of the 1.7 million members of his union, “giving up wage increases, giving up fringe benefits, things of that nature, in order to get good, good health plans that would cover themselves and their spouse and children, so they would be safe.”

Listen to the full story at NPR.

McEntee Talks Health Care with Bill Press

July 28th, 2009

AFSCME President Gerald W. McEntee appeared on the Bill Press Radio Show on Monday to talk about AFSCME’s aggressive campaign for health care reform. McEntee said AFSCME and other unions would use the congressional recess to put pressure on elected officials to pass health care reform.

Listen here (10 min. 43 sec.):

Public Pensions Support Vital Services, Stimulate the Economy

July 13th, 2009

This column by AFSCME President Gerald McEntee originally appeared in the USA Today opinion section.

Public pensions offer good value for taxpayers. In addition to providing modest but secure retirements for public employees — emergency responders, firefighters, health care workers, teachers, police officers and more — defined-benefit pension plans help provide vital public services and stimulate the economy.

The average annual benefit for a public worker, who has spent a career working for our communities at modest salary, is about $20,000. On average, taxpayers fund only 25% of the pension benefit; employee contributions and investments make up the rest.

While a handful of public pension plans are experiencing funding shortfalls, most are working well. Employers should be required to make regular contributions. That would solve the problem of shortfalls and protect a system that works for employers, employees and taxpayers.

Some proposals would only make matters worse. States that have experimented with private accounts, for example, saw lower investment returns — nearly a 50% reduction. Florida, Nebraska, North Dakota and West Virginia all tried private accounts. They left taxpayers footing the bill. When private retirement investment plans fail, they leave retirees more reliant on governmental financial assistance. That costs taxpayers more in the long run and hurts our communities.

Public pensions create almost $360 billion in economic activity and 2.5 million jobs. Shifting to a private system would have a dramatic and detrimental impact on local economies because businesses depend upon the stimulus of investment income from public pension systems. In California, switching to a system of private accounts could cost citizens $7.6 billion. Experimenting with a system of private accounts could put vital public services at risk and cost taxpayers significantly more for at least 10 to 15 years.

All Americans should have retirement benefits that they can count on, not the gamble of privatized 401(k)s run by the same Wall Street bankers who drove our economy into the ditch. Pensions are proven and critical tools to provide public services, stimulate the economy, secure retirement for public employees, and provide the best value for taxpayer dollars. Pensions work, so let’s preserve them and create retirement security for everyone who works hard for a living.

Gerald W. McEntee is president of the 1.6 million-member American Federation of State, County and Municipal Employees.