Monday, September 20, 2010

UNIONS NEED REFORMS BUT POLS ARE AFRAID TO TOUCH THIS

There are two types of Unions, those that represent Government employees where the "COMPANY" does not produce profits and, those that represent employees of for profit companies.

In the case of Government employees i.e.: Police, Firefighters, Teachers, Postal workers, etc. benefits have spiraled out of anything even remotely fair to Taxpayers. The problem is that the Government knows it can not withstand a prolonged strike or slowdown in these areas. The result is benefits and retirement funds far beyond anything that rewards performance and seniority. I do support our police and firefighters who do a risky job for all of us. However, I do not believe they deserve pensions that are in the 5 and 6 figure range. I also believe pay raises should be based on performance, not years on the job.

We the Taxpayers are now strapped with pensions at all levels of Government that were neither deserved nor earned. On the contrary, they were obtained through GUN TO THE HEAD negotiating tactics. No increases, no police, no mail, no firemen, etc.

The pensions for Government workers must be reformed. We can freeze any already in place but we must devise a new system. I think these workers should get Social Security just like all other workers. I also think they should be subject to performance minimums to get a raise. This fix would save Taxpayers Billions.

As to Union workers in for profit Companies, we should do the same thing. Social Security should be the pension.

Once these reforms take place, the Social Security system itself can be revisited. With the savings from the Government Pensions the base rates for social security can be increased for all. The retirement age also must be changed. I would support the following retirement age changes for Social Security:
For those currently 50 or older, no change.
For those 49 or younger:
In 2014 the age goes to 67
In 2018 the age goes to 68
In 2020 the age goes to 69

These changes would save taxpayers money, bring Social Security back into solvency and increase the benefit to all.

As to complaints about lost Pensions, I think people who make over $60,000 can afford to save about $100. per month to supplement their Social security.

I know this fix would be wildly protested. It is not the only fix but a fix is surely needed. The problem we face as a country is nobody is willing to give an inch. Sooner or later the message that we are out of money will get through. I hope not too late.

Just look at the situation in Greece. The Government was bankrupt and only survived through loans from the EU (Germany). Yet Government workers were protesting and rioting in the streets! What could they possibly hope to achieve? That could happen here too. People are brainwashed to believe that the Government can bail them out in every case. That is just no longer true.

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