WHEREAS:
The Puerto Rican economy has suffered a decline of 15 percent since 2006 and the unemployment rate on the island now stands at more than double that of the unemployment rate in the rest of the United States; and
WHEREAS:
This economic decline was caused by the expiration of federal tax provisions, high energy prices, the 2008 financial crisis and the global economic downturn that followed; and
WHEREAS:
This economic downturn was exacerbated by Puerto Rico's inequitable treatment under the federal Medicaid program and a number of other federal grant-in-aid programs; and
WHEREAS:
Successive Commonwealth governments have relied on issuing debt to deal with budget shortfalls, maintain vital public services and pay off maturing debt to deal with this prolonged economic crisis; and
WHEREAS:
Public debt in Puerto Rico has nearly doubled in the last ten years to an extraordinary $73 billion plus $40 billion in debt with the Retirement System fund. The current debt service costs are unsustainable and are forcing the Commonwealth government to cut vital services, including safety and health care programs; and
WHEREAS:
Public entities in Puerto Rico are barred by federal law from accessing Chapter 9 of the U.S. bankruptcy code. This puts Puerto Rico and its public agencies at a significant disadvantage in the debt restructuring process; and
WHEREAS:
Negotiations between the Commonwealth of Puerto Rico and its bondholders could lead to the impairment of public employee pension benefits that have been earned and partially financed by Puerto Rican public workers during long careers of public service; and
WHEREAS:
AFSCME has been working together with SPU-Council 95 and other international unions representing public services employees on the Island, seeking viable alternatives to deal with the Puerto Rico economic situation on behalf of retirees and public employees; and
WHEREAS:
Despite all the intensive work done and opposition from all sectors in Puerto Rico, the Federal House passed HR 5278, Puerto Rico Oversight Management and Economic Stabilization Act (PROMESA). This bill is unacceptable for the Puerto Rican People and does not meet the basic principles for a plan to assist the island which are: protection for the pension benefits accrued by Puerto Rico workers and retirees, equal treatment for Puerto Rico under Medicaid and other federal programs, retention of worker protections applicable to all individuals working in the United States, including minimum wage and overtime protections and the preservation of democratic rights for the People of Puerto Rico; and
WHEREAS:
AFSCME opposed Congressional approval of HR 5278 because it does not create a process for fair, comprehensive and equitable debt restructuring, it does not protect public workers and does nothing to promote sustainable economic growth for the 3.5 million American citizens living in Puerto Rico.
THEREFORE BE IT RESOLVED:
That AFSCME will continue to coordinate its efforts with SPU-AFSCME Council 95 and other labor unions representing public workers in Puerto Rico to ensure the interests of public workers are not ignored during the debt restructuring process; and
BE IT FURTHER RESOLVED:
That AFSCME will continue working with the U.S. Treasury Department to ensure the White House proposes and supports a plan for equal treatment for Puerto Rico under Medicaid and other federal programs with the purpose of improving Puerto Rico's budgetary situation and to promote legislation to support the Island's economic growth and the protection of labor rights; and
BE IT FURTHER RESOLVED:
That AFSCME will continue to engage with the U.S. Congress to prevent legislation that sacrifices services to the people and is harmful to the interests of public workers and residents of Puerto Rico; and
BE IT FINALLY RESOLVED:
That AFSCME will, in collaboration with SPU-Council 95 and other international labor unions, continue its efforts to persuade the U.S. Congress to pass legislation that protects public employee pensions, workers' rights, democratic processes and other vital interests, while providing the Commonwealth of Puerto Rico the legal tools needed to restructure its debt and providing mechanisms for economic growth and the revitalization of its economy.
SUBMITTED BY: Annette A. González Pérez, President
Nilsa Gómez, Secretary
SPUPR/AFSCME Council 95
Puerto Rico