The National Association of Manufacturers (NAM) represents the more than 12 million men and women who make things in America. Many of these workers are participants in what are known as multiemployer pension plans, and they are counting on these pension benefits for the safe and secure retirement they’ve earned. Yet, there is a looming crisis that carries potentially dire implications for millions of retirees as well as devastating consequences for thousands of businesses across the country. This is a problem that demands the right solutions, and quickly, and that is exactly why the NAM today submitted recommendations to the special committee in Congress charged with doing so.
Congress established the Joint Select Committee on Solvency of Multiemployer Pension Plans to find a solution to the multiemployer pension crisis. The crisis arose as the Great Recession cratered the holdings of longstanding pension plans and baby boomers began retiring en masse, so multiemployer pensions began having to pay more in benefits out of a decimated investment pool. The backstop that Congress created in 1974 to support retirees and workers in this type of pension crisis, called the Pension Benefit Guaranty Corporation (PBGC), is instead now teetering on the edge of insolvency itself. The combined impact of failing multiemployer plans and an insolvent PBGC Multiemployer Program is serious and, in the absence of congressional action to solve the problem today, could soon prove devastating for millions of Americans. That’s especially true for the 10 million participants and their families who rely on more than 1,400 plans in the multiemployer pension system.
This is why the NAM acted today to urge the Joint Select Committee to address the urgent, and worsening, multiemployer pension crisis. As we laid out in our letter, we believe that policymakers have a unique and historic opportunity to put the multiemployer pension system on a path to stability. And, by adhering to a few core principles, such as working expeditiously to address the urgent problems facing the system, crafting a comprehensive multiparty solution and protecting the healthy single-employer system throughout the process, we believe they can.
This is a huge challenge, but the Joint Select Committee and Congress can solve it. A comprehensive, bipartisan solution is within reach. So we urge policymakers to meet the moment with the swift, comprehensive and appropriate action that this crisis demands.
As the National Association of Manufacturers’ (NAM) director of photography and a former White House photographer, I’ve seen a lot of America. This past week, I drove my motorcycle from Washington, D.C., to Milwaukee, Wisconsin, to visit America’s modern manufacturers in advance of Manufacturing Day and the Harley-Davidson’s 115th anniversary event. As I rolled into Labor Day weekend, I met amazing men and women who keep America strong through their manufacturing careers. You can learn more about the cool innovations and opportunities the manufacturing industry creates by participating in Manufacturing Day this October 5.
Here are the top-five things I learned on my ride: Read More
Before Open Skies agreements, international commerce was stifled by post–World War II aviation rules that required governments to mandate flight routes between nations. These antiquated rules could not adapt to the aviation needs of a global economy and emerging technologies. In 1992, the United States signed an Open Skies agreement with the Netherlands to provide for unlimited flight between the two nations. Of course, the Federal Aviation Administration (FAA) was, and still is, responsible for ensuring that all airlines—foreign and domestic, passenger and cargo—are safe and airworthy. The bipartisan pursuit of Open Skies agreements created a framework to enable U.S. passenger and cargo airlines to access foreign aviation markets that had previously shut out U.S. air carriers. They also provide manufacturers the ability to access new customers in overseas markets while increasing competition and facilitating global trade.
Manufacturers have been stalwart advocates of these agreements because we export U.S.-made parts and goods across the world and thus depend on air cargo services with the kind of uninterrupted and continuous global reach that only Open Skies agreements can provide. In fact, the Brookings Institution estimates that Open Skies agreements add approximately $4 billion in annual economic gains to consumers. Learn more here.
And so, with the FAA reauthorization process underway and a September 30 authorization deadline looming, the National Association of Manufacturers (NAM) continues to urge both House and Senate leaders to support current Open Skies agreements because they open markets, promote competition and offer more options for manufacturers to access overseas customers. At the same time, manufacturers urge the Senate to reject proposals that would undermine Open Skies agreements and result in disruptions to the current agreements, jeopardizing manufacturers’ access to international aviation networks. That is why manufacturers stand with the Trump administration’s opposition to the so-called “Flag of Convenience” provision (Section 530) of the House-passed FAA Reauthorization Act (H.R. 4). This provision would create new barriers for foreign carriers to enter U.S. airspace beyond the negotiated standards of our current Open Skies agreements. These new barriers would violate our current agreements and invite retaliatory action against U.S. cargo and passenger air carriers operating across the globe and providing manufacturers access to overseas customers. Learn more here.
Manufacturers need products and parts made in the United States to continue to have the guaranteed delivery to overseas customers that is protected by our current Open Skies agreements, and so we have been active on this issue for some time. In 2015, the NAM underscored to the departments of Commerce, State and Transportation that manufacturers in the United States depend on sales overseas to sustain and grow American operations and U.S.-based employment. And in 2017, the NAM reminded the House Transportation and Infrastructure Committee and Senate Commerce, Science and Transportation Committee that Open Skies bilateral aviation agreements are one of several important tools that help ensure manufacturers’ access to global markets and critical services that support manufacturers in the United States. Now, with the Senate considering Open Skies agreements as part of the FAA reauthorization legislation, the NAM is again speaking out by urging Congress to reject false, so-called “Flags of Convenience” amendments and protect manufacturers’ access to international aviation networks and overseas customers that only these agreements can provide.
“The project is expected to support 2,200 new construction jobs, and the new facility will employ 160 new full-time manufacturing workers when completed.