Biden's $36 Billion for the Teamsters' Pension Fund: 'The Single Largest Approval' From the Butch Lewis Act (December 8, 2022)

President Joe Biden stood with the head of the Teamsters at the White House complex and announced a record payout for a troubled pension fund made up largely of Teamsters. “And today, my administration is announcing the single largest approval of funds from the Butch Lewis Act: $36 billion to cover — (applause) — to cover over 1,000 employers, 350,000 union workers and retirees,” Biden said on Dec. 8, 2022, according to the official White House transcript [1].

The White House called it “the largest ever award of federal financial support for worker and retiree pension security and the largest award from the American Rescue Plan’s Special Financial Assistance Program.” [2]

The video above shows Biden’s remarks on Dec. 8, 2022, and Press Secretary Karine Jean-Pierre the next day. Quotes are from the official White House transcripts and fact sheet, the American Presidency Project, the Clerk of the House, the Bureau of Labor Statistics and WHDH [1][2][3][4][5][6].

”Unions Built the Middle Class”

Biden thanked the labor leaders in the room. “And a special thanks to Labor Secretary Marty Walsh, Teamster General President Sean O’Brien, AFL-CIO President Liz Shuler for believing what I believe: that the middle class built America and unions built the middle class,” he said [1].

He opened with an apology. “Thank you all for being here. And I apologize for my back when I’m speaking to you. My mother would give me hell for doing that,” Biden said [1].

”Over $80 Billion”

The $36 billion was only part of the money. “This summer, I went to Cleveland to announce how we’d get this — get this going and get it done. Over $80 billion to keep multi-employer pension plans for union workers and retirees solvent for decades to come,” Biden said [1].

The fund getting the money, the White House said, “was the largest financially distressed multiemployer pension plan in the nation.” The fact sheet said the Central States Pension Fund “is largely made up of Teamster workers and retirees.” [2]

Without the money, the White House said, “these workers and retirees – who have already earned these benefits – would have faced estimated benefit reductions of roughly 60% in the next few years.” [2]

“Imagine What That Does”

“I just want pause for a second and say, you know, imagine if you’re not a union worker, you have a good job, you’re retiring — about to retire and you find out your pension plan is going to be cut 60 percent. Imagine what that does,” Biden said [1].

“That means some folks would stand to lose $10,000 each and every year of their retirement,” he said [1].

“Workers in this plan include truck drivers, warehouse workers, construction workers, and food processors,” the White House said. Its list of states included “Michigan – 40,000 workers and retirees” and “Ohio – 40,000 workers and retirees.” [2]

“Historic Relief”

In her opening remarks the next day, Jean-Pierre brought it up. “The President announced historic relief to protect the hard-earned pensions of hundreds of thousands of union workers and retirees thanks to the American Rescue Plan,” she said [3].

Not One Republican Vote

The money came from the Butch Lewis Act, part of Biden’s American Rescue Plan. When the House gave final approval to the American Rescue Plan Act on March 10, 2021, the vote was 220 to 211. Republicans voted 0 to 210; Democrats voted 220 to 1 [4].

Biden pitched it as the opposite of trickle-down economics. “I’m — the press is tired of hearing me say this, but, you know, when the poor have a ladder up and the middle class are able to prosper, the wealthy do very well. Everybody benefits. Trickling down doesn’t usually get down to the bottom,” he said [1].

”Incomes Are Rising Faster Than Inflation”

Biden closed with a claim about paychecks. “I campaigned to restore the backbone of this country: the middle class, the unions. And over the last two years, that’s what we’ve been doing. Americans are working. The economy is growing. And incomes are rising faster than inflation,” he said [1].

What the data show. Bureau of Labor Statistics figures for real average hourly earnings, which adjust pay for inflation, put the average at $10.98 an hour in November 2022, in 1982-84 dollars. That was a little above the low of $10.91 in June 2022, but below the $11.20 of a year earlier and the $11.39 of January 2021, when Biden took office [5].

By the Numbers

$36 billion: the award to the Central States Pension Fund [1][2].
350,000: union workers and retirees covered, per Biden [1].
60%: the benefit cuts the White House said retirees faced [2].
0: House Republicans who voted for the American Rescue Plan [4].
$11.39 to $10.98: real average hourly earnings from January 2021 to November 2022 [5].

What Happened Next

The Teamsters boss went to the Republican convention. On July 15, 2024, O’Brien “took the stage at the Republican National Convention in Milwaukee Monday, delivering the keynote address on day one of this year’s convention,” WHDH reported. He “became the first Teamsters president to speak at an RNC.” [6]

O’Brien “went on to criticize President Joe Biden and argue workers are being taken for granted,” the station reported. “We are not beholden to anyone or any party,” O’Brien said [6].

For Jean-Pierre’s briefing the same day as Biden’s announcement, see HYGO News’ page on Dec. 8, 2022. For her briefing the next day, see the page on Dec. 9, 2022.