Detroit, MI – In a blow to Detroit unionized public workers and their pensions, U.S. Bankruptcy Judge Steven W. Rhodes ruled on Dec. 4, that workers’ pensions are not protected. The judge overruled the Michigan constitution, which protects pensions as contracts between government and workers. Judge Rhodes said the Detroit bankruptcy could proceed anyway. This means that city of Detroit workers will not hold a special place in the bankruptcy proceedings versus municipal bond holders, insurers and others jockeying to collect in court.

Tallahassee, FL – As the Florida legislative session comes to a close, workers racked up a couple of major victories at the capitol. After months of protest by labor unions and progressive groups, the Florida Senate defeated two bills that would have attacked pensions for public workers and allowed corporations to privatize public schools.

San Jose, CA – On July 19 Hewlett-Packard, or HP, one of the country’s largest computer makers, announced that they would cut almost 15,000 jobs and dismantle their workers’ pension program. HP said that it could increase its profits $300 million a year by ending pensions for all new workers and cutting pension payments for all but the oldest and most senior workers – and expanding their 401(k)retirement program instead. HP is just another big business to slash their workers’ pension plans. In 1979 over 60% of workers with retirement benefits had pensions, but now less than 13% do.

“Here’s the fix, tax the rich!” chanted 350 University of Illinois at Chicago (UIC) workers, as they marched on May 26. Employees were mad as hell because of Governor Blagojevich’s threats against state pensions.

San Jose, CA – With the continuing decline in the stock market, private pension plans in the United States are now short $300 billion of the amount needed to pay future promised benefits. In addition, state and local government pension plans have also lost almost $300 billion over the last two years, leaving them with a $180 billion shortfall. These deficits, along with decline in workers’ 401(k) retirement accounts and company cutbacks in retirement health insurance, mean even more insecurity for present and future retirees. To make things worse, Bush and some state governments want to replace current pension plans and social security with private investment accounts.