Conspiracy Theory

 Author: Union Strong

Based on the evidence that’s out there at this current moment, one can conclude that this Union was duped.  Back in 1998 the company embarked on expansion plans that would culminate with the Colombia River Crossing or CRC (Community Building Sourcebook - December 2007 - community_sourcebook.pdf ).  In order to accomplish this endeavor the company sponsored an actuarial accounting along projections plans and deadlines.  To set up the funds they had to prop up the union, and then break them.  In setting up the union the company gladly continued with the Defined Benefit proposal that unions favored, because the benefit is projected into the future (a layaway plan).  The company chose to use PAYGO as a method of keeping the obligation funded, but at 0%.  In an unfunded defined benefit pension, no assets are set aside and the benefits are paid for by the employer or other pension sponsor as and when they are paid. This method of financing is known as Pay-as-you-go (PAYGO or PAYG).  In the US, ERISA explicitly forbids pay go for private sector, qualified, defined benefit plans.   Unfunded pension plans are said to be paid on a current disbursement method (also known as the pay as you go, PAYG, method). Unfunded plans may still have associated reserves to cover immediate expenses or smooth contributions within given time periods.  Thus with their plan in place they began the expansion, with the payroll taxes derived from high employment (unemployment was about 5.5%); with rates low enough the company was able to maintain their Paygo and expansion.  With major government assistance often granting up to 60% of the funds needed for the expansion due to high ridership (until the government found out that the numbers were not in fact true due to fare-less square; later they got rid of it, I think for lying about actual ridership levels).  A clear example of how they were doing business badly was the WES project, during this time the unemployment rate started to tick up during construction (5.3% annually from 2006-2008). Starting about June of 2008 (beginning at 5.6% to a high of 11.7% in 2010) the wheels began to come off due to the economy going into recession.  Many of you remember the company  contracted out with to build the rail cars; they went “belly-up” before the cars were completed.  In a surprise move the company bought out the company to complete the project; my question is where did they get the money?  Why wasn’t our union on top of these developments and the impact they may have in future negotiations?  As a union member, we just “heard” about this situation going down, most of us heard nothing of a union response to this situation.

Some of you may or may not know who John Charles of Cascade Poly Institute (not a union supporter), but have stated year after year on how the company does business john charles says Trimet used pension funds as ATM's - YouTube  ▶ John Charles says TriMet can't do everything at once - YouTube , he was also at the Senate hearing, where he said that, “Their (the company) completely upside down on the on their match between expenses and revenue this particular document(s) (3 total given),  which future historian would refer to as Trimet's “suicide note” (their financials) describes they can’t survive,  they would be completely collapsing within 15yrs,  but they imply, that there is an window of opportunity between now and fiscal 2017 which I think is false,  because they have been looting their trust funds their down $1.2 billion, these are trust funds,  money is supposed to be there for promises made to employees and past employees and their $900 million OPEB (Other Post-Employment Benefits) obligations is 0% funded, their other trusts funds 67% funded 52% funded, the Trimet board meets twice a month, I’m pretty sure you don’t wake up one day and discover wow 1.2bill is gone what happen, we are talking entire generations of board members  showing up at meetings,  looting the trust funds to pay for other stuff, that to me is a complete failure of governance and it goes  back over 20yrs.”  My question is “why” have we ignored this man’s testimony even though he hates unions?  He is right and this union should have not ignored the obvious by an impartial 3^rd party, we should have been prepared.   Just look back at this board meeting taking place in 2009 (▶ TRIMET BOARD MEETING-MARCH 09-part 8 - YouTube), then the General Manager rejected the notion of tearing the benefits from Defined Benefits to Defined Compensation, why? Simple, they were not done with expansion and needed the funds to continue building.  My question again is, has anyone noticed (other than me), how bad the company wants to get the CRC underway; with the Orange line about 50% completed?  My thoughts are that they have the cash (for their share) and it’s burning a hole in their preverbal pockets; also stashed somewhere that Opal has not found it yet, kind of reason they want to make public inquiries go away.

Lastly, I want to leave this question, as John Charles has stated the company will be bankrupt by 2025 or 2027 because of ordering Max cars with no funds, how is this company going to continue operating?  They have answered that, the unions new compensation plan; 457b.  The 457b can be used as assets in a creditor issue, such as a lawsuit.  So if we do the math on that 8% contribution from 2012-2013 to 2025 or 2027 that’s 15 years of ripening, that may be in the $20 million range….now that’s food for though.

Union Strong!!!