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Walsh Pledges to Help Solve Multiemployer Pension Crisis

Practice Management

In his first appearance before the Senate, President Biden’s nominee to lead the Department of Labor vowed to work with both parties to address multiemployer pensions, as well as other retirement security issues.  

Boston Mayor Martin Walsh, the Secretary of Labor nominee, stated at his Feb. 4 confirmation hearing before the Senate Health, Education, Labor and Pensions Committee that he is committed to finding a solution to the crisis. 

Though much of the hearing focused on addressing pandemic-related workforce issues, workforce training, raising the minimum wage and state right-to-work laws, Sen. Patty Murray (D-WA), who is the new chair of the Senate HELP Committee, did share her concerns about the need to address the multiemployer plan issue. 

“Nearly 1.5 million people rely on about 120 multiemployer pension funds that are in dire financial straits and expected to go bankrupt very soon; on top of that, the Pension Benefit Guaranty Corporation, which provides extra security for retirees when plans go bankrupt, is also projected to become insolvent by 2026,” Murray stated. “If those funds fail, not only will millions of Americans face economic devastation, but it will also be catastrophic for the thousands of employers particularly small businesses who are trying to do right by their workers,” she noted, adding that this is an “urgent crisis that needs a swift resolution.”

“Senator, I actually do commit to work with you and this is one of the largest crises of the moment and I feel that it’s our obligation as a government to protect workers and protect their futures, and by protecting their futures means protecting their pensions that they worked for to get at the end of their career,” Walsh responded.  

Walsh also pledged to Sen. John Hickenlooper (D-CO) that he would work with him on addressing purported workforce bias against senior citizens and creating opportunities for seniors to stay in the workforce and get modest benefits. 

Collaborative Effort

Walsh also emphasized his desire to work collaboratively and build partnerships, a trait that was touted when he was first nominated. “If confirmed, I pledge to lead this work in partnership with workers and businesses; states, cities, and tribal territories; employees in every agency of the Department of Labor; the Administration and members of Congress from all parties; and all the members of this Committee,” he said in his opening statement. 

To that end, Sen. Richard Burr (R-NC), the new ranking Republican on the Committee, emphasized to Walsh the importance of working with both political parties and with both labor and management. “Our nation can never afford to have a Labor Secretary that will ever be accused of being in cahoots with union bosses or beholden just to management. This is a job that requires a Labor Secretary who is willing to make a commitment to confront both, when necessary, for the protection of rank-and-file individual workers,” Burr stated. 

While Walsh was asked pointed questions—such as those in relation to President Biden’s Executive Order to cancel the completion of Keystone XL Pipeline or the push to enact the Protecting the Right to Organize Act (PRO Act) to give workers more power during work-related disputes—it appears that, based on the comments from members of both parties, he will be confirmed. 

Chair Murray indicated that she plans to hold a Feb. 11 Committee vote to advance Walsh’s nomination. A replay of the hearing can be viewed here