USW: Unions Growing Investment Funds

Portions of this website are paid for by the United Steelworkers Political Action Fund, with voluntary contributions from union members and their families, and is not authorized by any candidate or candidate's committee.

USW Political Action Fund - Five Gateway Center - Pittsburgh, PA 15222


	Unions Growing Investment Funds

print this page

To understand union investment funds there are only two things you need to know. One, pension funds – valued at $7 TRILLION dollars - are the single largest entity in the investment world. And two, it only makes sense for labor to be active in how its money is being invested.

Steelworker’s International President Leo Gerard was one of the driving forces behind the creation of these funds. He got tired of seeing union members' pension money helping companies relocate their facilities on foreign shores. He questioned why this money was benefiting corporations that were, in turn, harming union members. The outrageous surcharges and management fees - totaling hundreds of billions of dollars - appalled him.

Gerard helped organize a group known as the Heartland Labor Capital Network, which has built sizeable assets and are now lending capital investment money to worker-friendly companies.

Recent trends show that small to medium size businesses have the greatest potential for jobs growth. But many are still having a hard time finding investors.

Heartland is able to create a win-win situation for employers and employees.

Utilizing an investment capital program means Unions are looking beyond their own workplace and beyond the mindset that says we must think solely in terms of a global economy. Heartland Funds are putting the money to use in the present with a view toward the long term, a view that takes a long hard look at jobs for our future and jobs for our children.

Profitable but capitally-challenged companies benefit by getting the money necessary to make the improvements that grow their businesses.

The Heartland Network is modeled after a successful program in Canada known as Labour Sponsored Investment Funds (LSIF). LSIF funds are worth about $6 billion and control 51 percent of all venture capital in Canada.

Heartland’s assets are still modest compared to its Canadian counterparts, but Heartland already has its share of success stories.

While lending investment money can be quite profitable, there is risk involved. So responsible projects like Heartland measure their investments with great care, ensuring that the vast majority of union pension savings remain secure. Capital Investment money is expected to remain only a three to six percent slice of the total pension pie.