Thank you for that kind introduction. General Vice President Tucker thank you for the invitation to attend your Conference. It’s an honor for me to be here with my territory that has been, is, and will always be on the move and leading the way in organizing and servicing our members.
I also want to take a moment to thank you for endorsing the Executive Council for re-election. It is an honor and privilege for each of us to serve our members in these capacities.
I’d like to bring you up to date on some of the projects and initiatives we’re involved in at headquarters.
One of the biggest changes in the way this union does business has been the implementation of the Centralized Accounting System or “CAS,” as it’s commonly known.
As you know, the delegates at the Grand Lodge Convention in Cincinnati approved the change as a way to streamline our accounting practices and recover some of the millions of dues dollars that would regularly get hung up at one point or another in the old system.
We have lost more than 100,000 members in the past 5 years and we can’t afford anything less than the fastest, most efficient way of collecting and disbursing our members’ dues dollars.
It’s no secret this organization runs on dues dollars: our educational programs, our representational services, the salaries for staff and other employees and the whole range of expenses that are required for a first rate labor union.
It is absolutely essential, particularly in times like these, that we plan carefully and spend wisely. And to do that, we need all our resources available to us. Any local that isn’t fully paid up, is taking unfair advantage of those that are.
That’s not fair and I intend to do everything possible to carry out the mandate from our Convention last September to bring every local and district into full compliance with this new system.
We’ve had some real success with the CAS program. More than 61 percent of our lodges are up and running on the program. And we’re making a real difference in the amount of outstanding debt.
Right now, we’re down to about $2.9 million in outstanding debt. That’s down from nearly $5.5 million in outstanding debt before the CAS program was approved by the convention delegates.
And going forward, that’s the kind of money that can make a real difference when we’re looking at expanding the kinds of programs that mean so much to our members. With that, and the additional savings we have been able to make in the Budget at Headquarters and each Territory, we have not had to lay off one person – knock on wood. As Tom said, “We don’t have any more rabbits to pull out of the hat.”
Organizing drives are a perfect example. It’s not cheap to organize new members. Just ask anyone who’s done it.
And that’s another area where we’ve taken some important steps to make sure we have the resources we need to successfully organize.
Once again, it was the delegates in Cincinnati who took the lead and authorized the establishment of a $30 million investment account that will be used exclusively to generate funds for organizing drives.
In the 4 ½ months since the account was created, we’ve already generated $1.4 million in interest that will be used in organizing. And it will keep growing.
I believe the establishment of the organizing fund represents one of the most farsighted and strategically wise moves this union has made in years. And I want to thank each of you for taking the steps to make it happen.
Of course, it takes more than money to bring in new members. We’ve got a solid organizing program that was recently handed over from Ken Walsh, who just retired, to Larry Washam, who many of you know. A Great Lakes person.
And despite their best efforts, and the efforts of local and district organizers, we’re just not bringing in enough new members to make up for the ones we’re losing to factory closures, airline bankruptcies and bad trade deals.
Over the past five years, we’ve averaged about 4,500 new members each year. In the last six months we’ve brought in 3,600 new members. That’s just not enough to make up for the kind of losses we’ve seen over the past five years.
And it’s definitely not the kind of trend that can last for long without seriously eroding our abilities at the bargaining table, in the workplace and in the halls of Congress.
But there’s some good news on the organizing front. Last month, we signed an affiliation agreement with the TCU, an organization of 46,000 dues-payers that come from the railroad industry. That represents a huge boost and hopefully lays the groundwork for future affiliations and mergers that we are working on.
The potential for new members is certainly out there. In survey after survey, Americans view unions favorably and almost 60 percent would join a union today if given the opportunity.
I know we can count on you to help us grow this union. “Each of you,” know someone who works in a non-union facility “talk to them.” Talk to our Brothers and Sisters in the workplace about organizing. Be PROUD of our Union – talk it up every opportunity you get. It’s not about money. You sell this Union on what’s in your heart. It’s our responsibility to preserve our union and pass it on to our replacements as our forefathers did to us. So, on our watch we are going to do what? “Organize!” “Organize!”
As of August 31st, dues paying members are 371,801 - that’s why we must make organizing our number one priority.
And as you know, we’re convening an organizing summit in Chicago with representatives from every local and district lodge. It’s time we have a coordinated organizing program that takes full advantage of our extensive network of community- based locals. We simply can’t afford not to.
We’ve got the issues on our side. More and more workers are facing the threat of retirement without pensions or any reasonable expectation of employer-provided health insurance. That’s a huge shift from just a decade ago, when you could look forward to a decent standard of living after a lifetime of work.
Today’s workers know that they can’t expect much from Washington either, quite the opposite actually. From Medicare to Social Security, Washington has become the source of many of workers worst fears today.
Let’s face it, in spite of everything we hear in the mainstream media, unions today are the strongest advocate and the staunchest ally that workers and their families have.
No other organization comes close to what the IAM has to offer:
Financially Sound – with a Healthy Strike Fund & Organizing Fund
National Pension Plan – with $7 Billion Dollars in Assets
First Rate Departments at Headquarters and Regional Offices to Support our Members
And while I am counting the days until the next presidential election, I want everyone here to know that we will have important opportunities in the mid term election to send a serious message and begin taking back our country.
The outcome of a single Governors race can have an immediate impact on the lives of working Americans.
On election night in 2004, we got new Republican governors in Indiana, Kentucky and Missouri - and two of these new governors first official act was to terminate bargaining rights for tens of thousands of public employees.
In New Mexico and Illinois, where Democrats hold the Governors mansion, workers faired dramatically better - from striker replacement laws to card check elections, the differences couldn’t be greater.
I know I’m preaching to the choir here. You are this union’s most loyal soldiers. Mostly I want to thank you for everything you’ve done and everything I know you’re going to do in the months ahead.
As I mentioned, we are continuously monitoring our expenditures and searching for ways to reduce costs without having to reduce the workforce. One is our Purchase Card program that will save around $80,000 a year. Another is rebates when we lease cars from Ford. Also, we are reducing travel when possible to do so. We will be having one staff conference for all territories until the 2008 Convention. Utilizing electronic transfer instead of paper checks whenever feasible.
A couple of new things: V-Lodge Grievance Package available – need to go through your GVP and to my department for the Information Systems Department to assist in the set up.
Also, we will be rolling out a pension calculator that will be hosted on V-Lodge for all Grand Lodge Staff to utilize effective October 1st under the Direct Deposit Inquiry System – pay stubs – expense reimbursements – Pension Inquiry System.
Thank you for helping the Accounting Department with the changes in our Weekly Expense Statements and working with the LM2 & LM 30’s. We have been quite busy staying on top of these changes.
There’s one more thing I’d like to mention before I close. October 1 is the deadline for locals to turn in their average hourly wage calculations. It’s important for union negotiators and organizers to have an accurate figure for the average hourly wage of IAM members.
I’d like to ask each of you to check on your local and make sure they turn in their calculation. If any financial officer is having difficulty, let them know that our auditors are only a phone call away and will help them get the job done.
And finally, I want to thank each and everyone here for everything you do for this union. There just aren’t enough words to convey my appreciation for all the time you put into making the IAM the best, the toughest and the smartest labor union there is. I mean that with all my heart.
Thank you.
