This past week, ordinary Americans -- many having tapped out their own home equity lines of credit -- watched in dismay as the federal government propped up American International Group (AIG) with $85 billion in taxpayer-funded loans. The company used the bundled equity in our homes to make investments even it didn't understand. So while we're all helping to restore AIG's value as it waits to sell assets, what is AIG going to do for us?
I have two ideas.
First, among its various insurance products, AIG provides health care policies. Undoubtedly, the company, like all insurers, has turned down tens of thousands of people because of their pre-existing conditions.
Now that we are each stakeholders in AIG, we should insist it review those rejections and insure some number of people in each state who are without insurance. Better yet, why not force AIG to open up a month-long window in which people who have been turned down by other health insurers can re-apply to its agents?
Since they're working on our dime, the AIG agents and underwriters should give policies to people with diseases and disabilities, especially since the company markets itself as a leader in supplemental health insurance for those diagnosed with cancer and other serious health problems.
Second, now that AIG is akin to a quasi-federal agency, the unions should demand collective bargaining rights, as they do with other government entities.
The company employs 117,000 individuals, most of them unorganized. There are thousands of clerical workers, for example, at AIG's main offices who have seen the company shares in their 401(k)'s shrink by 95 percent.
Just as the United Auto Workers supports loans for the auto industry, the labor movement should support loans to AIG -- but only in exchange for a "neutrality agreement." AIG should allow SEIU or AFSCME or UNITE HERE to meet with their administrative and service staff, their low-level underwriters, their IT people, and anyone else. Union members should demand labor rights for AIG workers and should force candidates for office to make the same demand.
We appear to be moving to a European model, where a few large financial institutions are heavily regulated and supported by the government. The difference is, in that system, the workers get something back.
Don Wiener is a labor and political consultant of 30 years.
SEIUPol (not verified) on Mon, 09/22/2008 - 12:17
Great idea Wiener. Now all we need is a member of Congress or a presdential candidate to take up the cause. Durbin and others have already said that taxpayers need to get something out of this massive hand-out to the financial industry. I think your suggestions are a great jumping off point for negotiations. How do we get a seat at the table?
Eric (not verified) on Sun, 10/05/2008 - 23:21
Yeah, its sad this just got swept under the table because of the 700 billion dollar bailout. AIG got almost 1/7th of what we gave all the american businesses in the bailout. They should have never gotten a bailout, they don't do any good for America. If there was any justice in this country they would have been allowed to go under and then we would have provided every American with government covered healthcare like in Europe and other developed countries.
mad-man (not verified) on Thu, 10/16/2008 - 00:13
I think we should have let all of these type companies, crash and burn! It's funny to me that the politicians do NOT want to tax the rich man because he is supposedly the one creating all the new business and jobs. However, it will be us poor men who pay the taxes which will cover the cost of this bail-out...and cover the asses of those rich men wasting our money on fancy hotels and dinners...after they received the bail-out money!
About 10 years ago we bailed out the airline industry and what have they to show for it...NOT much either.
Until we get these greedy, thieveing CEO's and politicians out of these key offices, we will never see any real progress!
Anonymous (not verified) on Tue, 10/28/2008 - 13:35
When will we wake up? The real crux of the matter isn't a bunch of pols bailing poor stupid banking and corporate types out because of some big opps! This whole thing is too planned. Yeah, the CEO's and heads of banking are greedy, but they are not alone. The pols are greedy too. The ones who aren't greedy have been scared into the bailout. Some were enticed and bought. There is a plan. It is being executed, and we are clueless. Our Congress and Senate are clueless. God knows, I hope I'm wrong, but I don't think I am. Suddenly, there is all this talk of global crisis, worldwide financial difficulties, joining together to bring about a solution for us ALL. Of course it will be masked as better for all of us, more fair, safer, for OUR good. Wait! Wasn't wiretapping, and private prisons set up FOR OR SAFETY AND FOR OUR GOOD? SOMEBODY READ THE CONSTITUTION!
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