AMERICA AWAKES TO A SEA OF RED INK….

…BUILT ON A HOUSE OF CARDS…
401K—NO SUBSTITUTE FOR A DEFINED PENSION

Most people with savings accounts, 401k retirement programs, real estate and mortgage holdings and investments are waking up on this day with anxiety and worries. The stock market dropped over 500 points or 4.5% of its total value on word that many mega-financial service institutions had failed or are about to fail.

The economy is in a turmoil and the politicians of both parties don’t seem capable of handling the depth and scope of the potential devastation that is about to be visited upon most American families. People who are close to retirement age and have put an inordinate amount of their eggs in the 401K basket are beside themselves with additional worry and angst.

Imagine being of retirement age this year and knowing that the amount of money that is AT RISK right now and the losses that are incurring might never be made up in a lifetime of future investments. Without having more secure retirement funds such as is provided by a stable, guaranteed pension, retirees could face permanent financial calamity.

AIG, Merrill Lynch, Lehman Bros., all American heavy weight financial icons are gone or about to go; Lehman, an institution that has stood for 158 years crumbled overnight. What shoe will drop next and will the country ride out this economic storm or drift into a financial malaise of undetermined length?

These are tough, difficult times and all of us should understand that, while all seems uncertain, all is not hopeless. The stock market, besides its past calamities of 1929, 1987 etc., has for its history averaged about a 12% annual return on average despite the downturns.

However, a 401K account, while important to most savings programs, is not a substitute for a guaranteed defined pension benefit. Nobody knows what the future might hold or what the health of the economy will be when each of us decides to retire. With a defined pension benefit amount provided through the IAM everyone will know what their retirement check will be and hopefully, those who decide to supplement their retirement with a 401K will be fortunate enough to have a good year during those retirement moments.

These uncertain times are the perfect example as to why American workers need more than just a smile and a promise about our future and what compensation will be provided for our good works and hard labor. With an IAM provided union contract, there will be no wonder what our pay and benefits will be from year to year to help cover those bad moments that creep up on families and economies.

The mistakes of our politicians and CEO’s, while potentially devastating can be mitigated with the calming knowledge and steady support a guaranteed contract and pension can provide. With a contract in hand, the promises of industry standard pay coming in 2010 will be more than just a far off pledge that bares no weight and has no legal meaning.

The IAM provides more than just a glossy brochure that describes what might be if all works out as planned or promised; the IAM means business and puts in hand a written document that helps families plan for the future with solid information based on obligated pay and benefits written into a contract.

The instability of the bad news of today, while worrisome, can be nothing more than a temporary bad dream we can all wake up from if we only have the strength to act and show the courage that exists within each of us; the courage and determination to stand tall for our co-workers and our families. Let’s build a future on a foundation that will not crumble with the first bad economic storm that comes along. Let’s sign those A-cards today.