Let's Make AIG A Real Political Issue

Don Wiener — Fri, 19 Sep 2008 17:08:33 -0700

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.