| FOR IMMEDIATE RELEASE June 13, 2001 |
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Worker Information Project: Retirement Security Takes a Real Pension Food And Commercial Workers Union Launch Project To Alert Workers: 401 (k) Plans Are Not Real Pensions The United Food and Commercial Workers Union (UFCW) launched a nationwide Worker Information Project (WIP) to alert workers to risks of the growing trend among employers to substitute 401 (k) plans for real pensions. The nationwide program kicked off in Pittsburgh with a rally and press conference at the area headquarters of Shop N Save Supermarkets. Worker activists and representatives distributed information directly to Shop N Save workers on the failure of the company to provide a real pension plan. The parent of Shop N Save, the supermarket giant, Supervalu, provides employer- funded pension plans to over 30,000 workers nationwide, but refuses to give Pittsburgh area workers the same retirement security. Instead, Pittsburgh area Shop N Save workers only have the Supervalu 401(k) plan, which Smart Money magazine ranked 90th out of 93 plans in a comparative survey. (Smart Money, October 2000) 401(k) plans are becoming the predominant form of retirement benefit, shifting the burden onto the backs of employees. The risk to workers is easily demonstrated. A typical U.S. worker forced to rely solely on a 401(k) plan for retirement faces an uncertain future. For example, if an average hourly worker ($13.74/hour today) invested over the past 20 years 5% of his income per year with an employer match into a 401(k) plan, he will only have approximately $45,800 upon retirement. If the market dropped equivalent to the largest single day drop, 22%?that worker would be left with $35,500 for his entire retirement. Neither amount is enough to retire on. 401(k) plans are a great supplement to a real pension, but not a substitute. "Employers are deceiving workers with a false promise of a 401(k) plan. An entire generation of workers are at risk. Supervalu is at the top of the list, it offers real pensions to some workers and refuses real pensions to other workers. We are organizing workers to demand a real pension," said Ron Kean, President of UFCW Local 23. The UFCW is the largest organization of retail workers in the U.S. and Canada, with 1.4 million members. More than 800,000 U.S. supermarket workers have a secure retirement benefit thanks to their UFCW union contract. -30- |
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