Washington, DC The Great Depression of the 1930s proved that only the federal government can provide national economic stability. Unrestrained private-sector economic activity had resulted in the Great Depression, and private charities and state and local governments were overwhelmed by the unemployment and the poor. Since then, the nation has constructed an economic security "safety net" which has helped individuals in need and reduced wide swings between deep recession and rapid economic growth All Americans have benefited from increased economic stability. That safety net is now under attack. In fact, the recently-passed welfare law (TANF) has already ended one of the original economic security programs, Aid to Families with Dependent Children, thus making it all the more important that we retain and strengthen the others: unemployment insurance benefits and employment services for workers who lose their jobs; Medicaid health benefits for poor and unemployed families; and food stamp assistance for the poor and unemployed. Further, TANF is silent with regard to whether welfare-to- work participants will receive at least the minimum wage or coverage under workers' compensation, health and safety, anti- discrimination,collective bargaining, and other employment laws. In addition, TANF does not adequately protect unfilled union jobs from being converted into workfare slots or protect against partial displacement of the current workforce through reductions in hours and wages. Additional proposals have been advanced that would weaken or destroy key features of the medicaid, food stamps, unemployment insurance and employment services programs. By limiting how much money the federal government could spend in the form of fixed "block grants," these proposals would destroy their crucial counter-cyclical features and their ability to stabilize the American economy. They would lead to a reduction in the number of people receiving those benefits and the value of the benefits. In addition, these devolution plans would allow the states to turn the public administration of these programs over to private organizations, triggering contract bidding wars of unprecedented magnitude. Crucial accountability mechanisms, such as requirements for merit-based personnel systems which have protected these programs from political corruption would be lost.
THEREFORE BE IT RESOLVED: That the AFL-CIO strongly opposes any attempts to devolve and privatize the Medicaid, food stamp, unemployment insurance and employment service programs; That the AFL-CIO will work to ensure that public employees continue to administer welfare programs so that the programs remain impartial and accountable to the public. That the AFL-CIO secure pledges from non-profit organizations to which it contributes or promotes that they will agree to participate only in welfare-to-work programs that treat the participants fairly and do not reduce their current workforce; The AFL-CIO also resolves to work for passage of legislation which guarantees that welfare recipients are entitled to all the same rights and protections as other workers, thereby maintaining the integrity of our labor laws.