What's making news

Economic news—Are you getting the whole story?

By Secretary-Treasurer Don McGill
Every day, we’re bombarded with reports on the radio, in newspapers and on TV about the failing economy. All repeat the same frightening story about deep recession, global downturn, worst contraction in the post-war period, retail sales plunge and wealth evaporation.

But I believe there are several reasons to be optimistic. Tremendous efforts are taking place at international, federal and provincial levels and, indeed, within your own local union.

World central bankers are restoring some order to ailing financial markets with massive liquidity injections, financial guarantees, bank nationalizations and direct purchases of toxic securities. This is ensuring access for many companies to crucial markets. Although financial markets have not returned to normal, interbank lending rates have declined from crisis levels and banks are once again willing to lend to each other.

In addition, interest rates have been slashed dramatically, with more cuts on the way. Once markets stabilize, rock-bottom interest rates will provide a powerful incentive to borrow and invest, as short-term money is virtually free.

On the federal level, we’re starting to see innovative policy actions from both the Canadian and American governments. Both federal governments have stepped in with a massive amount of fiscal stimulus, putting dollars directly into the economy.

Recent government announcements have focused on financing infrastructure construction that will train and employ thousands of B.C. workers.

The province is also offering programs that will kick-start an ailing local economy. The Gateway Project and new Port Mann Bridge are just a couple of examples. Regardless of whoever forms the next provincial government, huge amounts of money will continue to be pumped into the economy.

However, the most important questions being asked by Local 213 members are: Will I continue to have a job? Is my union growing in spite of the downturn? Is my pension safe?

We’re supporting government efforts to stabilize the economy. Local 213 members will benefit greatly from the massive spending in infrastructure and resulting spinoffs.

In addition, you might be surprised to learn that your local union had a net gain of 316 new members in 2008. Teamsters Joint Council 36, representing four Teamster locals, had a net growth in membership of 556. Not only will we continue to represent our members, but we are actively organizing at the workplaces and on job sites in B.C.

Finally, if you are a participant in a Local 213 pension plan, rest assured it is being well looked after. Our most recent actuarial review showed that our plans are in good shape, and recent financial events have had very little impact. You are benefiting from the expertise and experience of investment advisors who are making decisions on your behalf to ensure the protection and growth of your pension and health and welfare benefits.

Our boards of trustees have invested wisely and conservatively. It is their sole responsibility to work to provide you with the best pension plan, one that will give you assurance and comfort during your retirement years. Although we are not immune to the fluctuations of the market, we have an investment policy that requires that the plan’s assets be matched to its liabilities.

Although these are difficult times for many, you can be confident that the local union is up to the task and continually working to enhance conditions at the workplace, expand job opportunities, protect benefits and provide the best pension plans for the membership.