One commentator on the radio this morning suggested the strike could push the country back into recessionYes, that's being brought up consistently on the reports that I am seeing today.
He hands me a chart. It shows that the city’s pension costs when he first became interested in the subject were projected to run $73 million a year. This year they would be $245 million: pension and health-care costs of retired workers now are more than half the budget. In three years’ time pension costs alone would come to $400 million, though “if you were to adjust for real life expectancy it is more like $650 million.” Legally obliged to meet these costs, the city can respond only by cutting elsewhere. As a result, San Jose, once run by 7,450 city workers, was now being run by 5,400 city workers. The city was back to staffing levels of 1988, when it had a quarter of a million fewer residents. The remaining workers had taken a 10 percent pay cut; yet even that was not enough to offset the increase in the city’s pension liability. The city had closed its libraries three days a week. It had cut back servicing its parks. It had refrained from opening a brand-new community center, built before the housing bust, because it couldn’t pay to staff the place. For the first time in history it had laid off police officers and firefighters.On the other hand ... well, the city agreed to it. And it's earned income. And I talked to a teacher over Thanksgiving who may soon have her "pension" (actually the state-employee version of Social Security) taken away even though it's been paid for by deductions from her paycheck for years. So it seems like in some cases there's a real fiscal problem with agreements cities never should have committed to and won't be able to pay, and in other cases there's some folks with pensions they've earned who are going to get thrown under the bus. It's impossible to tell from anecdotes which one dominates, but they're both powerful political narratives, and I wonder how on earth we'll navigate this thing.
About 60 protestors gained entry into the offices of mining company Xstrata, a ‘leading light’ of the FTSE 100 and British industry to highlight the fact that CEO Mick Davies was the highest compensated CEO of all the FTSE 100 companies in the last year, when his companies had losses and the economy collapsed. He received £18,426,105 for his efforts.posted by PercussivePaul at 8:40 AM on November 30, 2011 [5 favorites]
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The protesters today are making the connection between the slashing of private and public sector pensions, while supposed ‘top’ executives cash in by increasing their own pay levels, leaving many without pensions. These CEOs like Mick Davies lavishly secure their own futures while ignoring the security and wellbeing of their own workers.
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posted by lalochezia at 6:28 AM on November 30, 2011 [19 favorites]