REDES: The Power of Organized People
The victories of today make way for a future of dignified life
September 30, 2021
The voices of our archipelago and its diaspora resonate and demand a life and existence of dignity for all Puerto Ricans. A future where we remain in our land. These voices are raised with such force that, in the past year, we have seen the power of the people when they conspire and organize. The NETWORKS (REDES) that these unions and organizations of workers and pensioners have formed in Puerto Rico have stood up and gained ground against the public debt, the PROMESA Act, the Fiscal Control Board, and colonialism, among other threats to our very existence.
One of those stories is that of Construyamos Otro Acuerdo (Let's Build Another Agreement, or COA) and the Federación de Maestros de Puerto Rico (Puerto Rico Teachers Federation, or FMPR).
June 9, 2021: The Law for a Dignified Retirement is passed
Dignified Retirement prohibits cuts in the retirees’ pensions and benefits, unifies all public employees under one system (except for UPR and PREPA, each of which has its own system), and creates a trust that capitalizes on them. Additionally, it defines which essential services must be prioritized over any payment to bondholders.
Construyamos Otro Acuerdo (COA)
was created to build people power in Puerto Rican communities. COA has amplified and raised the need for the cancellation of the public debt as the only way to protect workers and ensure a fair recovery in the archipelago. This excessive debt, faced by Puerto Rico's public sector, is the unintended result of a series of public policy decisions that began in 1898, when the United States took possession of the Island.
In the past two years, the Fiscal Control Board has publicly declared that more than $9 billion of the public debt are "illegal". The Plan of Adjustment, which could be approved in early October 2021, seeks to restructure the government’s $35 billion debt and includes both, a mandatory annual payment to bondholders by the government of Puerto Rico as well as cuts to the pensions of the Public Employees Retirement System and the Public Buildings Authority.
2020-2021
The PR Legislature unanimously passed a resolution to protect pensions from cuts, opening the door to aggressive debt cancellation as a tool to protect services and workers.
COA held a historic assembly where 1,000 pensioners agreed on a resolution to protect pensions, promote debt cancellation, and protect essential services, among other social justice demands.
In 2020, for the first time in a decade, the government of Puerto Rico opposed new austerity measures proposed by the Fiscal Control Board and supported efforts to stop cuts to pensions and essential services.
June 9, 2021: The Law for a Dignified Retirement is passed. The Law was unanimously approved by both chambers of the PR Legislature and signed by the Governor. It is intended to protect pensions and essential services while canceling the illegal debt.
Members of the Fiscal Control Board have publicly opposed pension cuts, which represents a huge shift in their position and brings us one step closer to ensuring that pensions are protected.
What’s happening now?
In some cases, the restructuration plans propose to provide hedge fund creditors an amount close to their investment’s full amount, even though they purchased the bonds at extraordinary one-time discounts, while seeking to cut 80% of the payments to small local businesses, workers of the public sector, and other individuals who won civil rights disputes against the government. The Fiscal Control Board's plans for debt restructuration are unsustainable and, even by the Board's own estimates, would cause deficits as early as 2036.
U.S. District Judge, Laura Taylor Swain, ordered on Monday to extend the voting period for the Plan of Adjustment until October 18.
COA has been advancing the campaign to vote “NO” on the Plan of Adjustment.
Pensioners will have the power to vote for or against this Plan, if they meet the voting requirements.
Labor unions reject House Bill 1003, which would create the law to end the bankruptcy of Puerto Rico.
The fight for a dignified life continues!
In the last 4 years, the Puerto Rico Teachers Federation (FMPR, for its Spanish acronym) has faced some of its most arduous struggles. Even amidst hurricanes, the Fiscal Control Board, earthquakes, and the COVID-19 pandemic, they have not stopped defending the rights of teachers and students, as well as the right to a free public education.
FMPR established "School Without Walls" after earthquakes hit the southern region in 2020. Despite facing the pandemic’s many obstacles, FMPR has continued to prioritize the rights of public school teachers, students, and their families. Last year, FMPR obtained the government's commitment to deliver laptops and internet vouchers to all students, facilitating online access during this digital semester. The organization has also continued to play an integral role in the fight for a dignified retirement.
The Teachers Federation defeated the agreement between the Teachers Association and the Fiscal Control Board
The agreement of the Teachers Association and the Fiscal Control Board reduced pensions substantially and raised the retirement age by 8 years, among other things. It endorsed the 8.5% cut to pensions and the debt Adjustment Plan that cuts funds for essential health, education, security, environmental protection, and economic development services.
During 2021, FMPR demanded the reparation and reconstruction of schools, and access to vaccines for those want them before returning to school. They also continued to demand and defend safe schools for children and youth. Tech workshops for teachers were also offered to assist in the implementation of their online courses. In addition, 9,660 endorsements were collected to petition teacher union elections and become the exclusive union representative of teachers in Puerto Rico. Through Zoom, online guidance was offered to hundreds of teachers on the Law for a Dignified Retirement and on health and safety protocols to be implemented in open schools. Over 9,660 teachers from all over Puerto Rico were served and impacted throughout the entire island.
What's happening now?
FMPR beat the agreement between the Puerto Rico Teachers Association and the Fiscal Control Board
11,277 teachers voted NO, while 6,059 voted YES, on the agreement between the Teachers Association and the Fiscal Control Board, which would have substantially reduced pensions and increased the retirement age by 8 more years. An overwhelming majority rejected the agreement with the Fiscal Control Board.
The agreement endorsed the 8.5% cut to pensions and the debt Plan of Adjustment that cuts funds for essential health, education, security, environmental protection, and economic development services.
"The Teachers Association must recognize that they do not represent the interests of the teachers and that we reject the surrendering of our rights in dark room negotiations. It must step aside and allow the teachers’ desire for a dignified future to prevail," the teachers expressed.
House Bill 1003 would reestablish, in practice, the agreement between the Association and the Fiscal Control Board, despite its having been already widely defeated by the teachers. It would include cuts to retirees' pensions. If approved, it would be a harmful act against retirees, teaching professionals, and the country, " teachers declared on September 28, 2021.
WHAT NOW?
Rejecting the debt Plan of Adjustment
This Plan aims to reject essential services for people. Studies show that the poorest 40% of the population suffer the most when government services are eliminated to "balance" budgets. Austerity affects Puerto Ricans who are already affected.
This Plan threatens essential services and will bring us to bankruptcy in less than ten years.
Zero cuts and continuing to protect pensions
The Fiscal Control Board is leading a debt restructuration process that is projected to cost Puerto Ricans $1.6 billion, benefiting Wall Street and hurting Puerto Rican pensioners and families. The fight against the Board and its plan of austerity, precariousness, and displacement is a fight by and for all who live and want to continue living in Puerto Rico. Pensions are exposed to cuts in Puerto Rico's bankruptcy process under Title III of the federal PROMESA Act —because pensioners are creditors—.
LEARN MORE ABOUT OUR SERIES OF STORIES
REDES: BUILDING POWER TOGETHER
At María Fund, we are clear that we must undo centuries of scarcity, control, violence, and trauma caused by colonialism that have displaced us generation after generation. In the last two decades, in particular, we have faced consecutive tides of political, social, and economic displacement that seek to strip us of even more power, self-determination, and justice. The public debt, PROMESA, the Fiscal Control Board, and Hurricane María, marked a before and after for many. Austerity in the form of layoffs, budget cuts, and privatizations has forced thousands of people to leave and the precariousness of those who remain. Gender-based violence is a growing pandemic that disproportionately affects women and LGBTQIAPNB+ folks.
Four years ago, a climate emergency accelerated and revealed this political crisis more quickly. We know that the disaster is still political... but we believe that it is possible to build together a future of a dignified life for all.
We support REDES (networks) and connect to co-build, heal, and move towards a Puerto Rico where we are able to have interdependent relationships with one other and with the rest of the world.
REDES is a series of stories about the victories, achievements, and impact of the organizations allied to María Fund during 2021 and the past years. Our goal is to be more visible, to be bigger, to be stronger. Our goal is that by seeing how our stories connect, we can also see how we win more when we come together and fly together. Our goal is for our stories to be one: a story of national and collective liberation.