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Union Pension Woes Help Spur Push For Forced Arbitration
...Firms fear that remaining provisions — especially mandatory arbitration — would still harm them.

Among their concerns is that they could be forced to pay into ailing union-run pension funds. Indeed, many business lobbyists believe this is the real agenda behind the legislation.

"The status of underfunded pension funds is a huge part of the motivation to get card check passed," said Ted Phlegar, an attorney with the Chamber of Commerce.

Why pensions? Because many union-managed funds are seriously underfunded.

The average union pension has resources to cover just 66% of what is owed to participants, according to the Pension Benefit Guaranty Corp....

...EFCA's other provisions include mandatory binding arbitration if workers have voted to unionize but the union and the company haven't agreed on a contract. One thing unions could push for in ar bitration is having the firm contribute to a union-run pension fund....

...Businesses fear arbitration could be used to require them to take up the slack in underfunded pension plans. In effect, companies could have to pay the pensions of people who never worked for them.

"We would walk in the door inheriting the unfunded liability that a pension plan already has on the books," said Brett McMahon, a vice president of Miller and Long, a construction company, and a member of Associated Builders and Contractors, which opposes EFCA. "Once you start contributing (under current law) you become liable for the plan's deficiencies before you got there."...