Pension-reform protests come to Schwab's door

By Dan Laidman
CONTRA COSTA TIMES

SAN FRANCISCO - Throngs of workers and senior citizens encircled a city block in the financial district Thursday to protest proposed changes to Social Security and California's pension system.

The protest outside the headquarters of Charles Schwab Corp., a financial services firm, was part of a nationwide volley of demonstrations sponsored by organized labor in response to President Bush's proposed overhaul of Social Security.

The San Francisco protest, led by the California Labor Federation, was notable for the way the speakers blended attacks on the president's plan with denunciations of Gov. Arnold Schwarzenegger's effort to shift state employees from a traditional pension system to 401(k) plans.

"I know a few things about numbers, and I can tell you the president's plan for Social Security is a rip-off," said Steve Westly, California's state controller and a former eBay executive, as he addressed the crowd from atop a flatbed truck sporting a Teamsters logo. "The governor has put forth a similar plan which would eviscerate the pensions of our working people."

Westly, a Democrat who has been mentioned as a possible candidate for governor in 2006, made no mention of Charles Schwab in his address, though the brokerage firm and its eponymous chief executive took plenty of dings from the other speakers.

California Labor Federation leader Art Pulaski portrayed Schwab as a symbol of a financial industry that stands to profit from the conversion of defined benefit plans to those involving private investment accounts. He said Schwab personally has donated to Republican causes that support Schwarzenegger's pension reform plan and that the Schwab corporation has supported proponents of the president's Social Security changes.

Sondra Harris, a spokeswoman for Charles Schwab Corp., said that neither the company nor its CEO has endorsed any specific plan for reforming Social Security.

While acknowledging that Schwab has ties to a group that promotes private Social Security accounts, Harris pointed out that the Schwab corporation has given money to at least one organization that opposes the president's plan, the New Democratic Network. The company wants an "open discussion" about Social Security's future, she said.

"We're a little bit frustrated and flabbergasted as to why we're being targeted," Harris said. "Many Americans associate Charles Schwab as being a true proponent of the individual investor."

As speakers addressed demonstrators in English, Spanish and Cantonese, protesters waved anti-Bush and anti-Schwarzenegger signs, as well as placards showing their affiliations with union locals and Bay Area senior centers.

Organizers estimated that 1,500 people took part.

James Garcia, a fire truck mechanic for the city of Oakland, said his fellow public employees have been paying into their retirement system and that it remains solvent. He said it does not need a drastic change and neither does Social Security.

"It's a way of trying to steal money from people who are working and legally give it to the rich," he said.

While the demonstration was boisterous, with workers packing sidewalks and drawing honks from passing trucks, it was orderly. Police said there were no disturbances or arrests, and Harris said Charles Schwab workers were able to conduct their business.

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