A ‘Crisis’ in the Making

The Bush Administration took another stab at the Social Security system last week with a campaign-style event in Washington, D.C., where supporters of the president’s privatization plan lined up to criticize the federal retirement insurance program.

The White House forum coincides with speeches from Vice President Dick Cheney and Treasury Secretary John Snow warning about the so-called Social Security “crisis.” The pro-privatization campaign also includes a $250,000 advertising blitz from Progress for America, the largest Republican-backed independent political group of the 2004 election.

“The president’s second term agenda is becoming increasingly clear,” said IP Tom Buffenbarger. “He plans a Social Security system that favors investors at the expense of retirees; a tax system that favors wealthy Americans at the expense of middle class citizens and a health care system that favors pharmaceutical and insurance companies at the expense of patients and their families.”

The president’s proposal to overhaul Social Security will require benefit cuts of up to 45 percent for future retirees and add as much as $2 trillion to the federal budget deficit. Critics of the president’s privatization plan reject talk of an imminent “crisis” as misleading and argue the system can continue to provide full benefits through 2042.

DOD Decision Could Cut C130, F/A 22

The proposal by White House and Department of Defense (DoD) officials to terminate C-130J transport and F/A-22 fighter production could jeopardize national security and severely affect IAM jobs at Boeing, Lockheed Martin, UTC and numerous vendors.

For more than 50 years the C130 aircraft has been a workhorse for the U.S. military, reliably transporting troops and supplies around the world. The aircraft also functions as a highly recognizable symbol of the U.S. commitment to peace, most recently delivering personnel and supplies in support of the tsunami relief effort in Southern Asia.

“Terminating the C130J would leave Airbus as the only manufacturer in the world capable of producing an aircraft in this class,” said Southern Territory GVP Bob Martinez.

The DoD proposal also would cut F/A-22 production by half in 2006 and totally eliminate production in 2008. The F/A-22 provides proven tactical dominance for U.S. forces around the world and is responsible for more than 40,000 jobs in 44 states.

“We believe the President should preserve funding for the C130J and maintain the current production schedule for the F/A-22 fighter program. The elimination of these two important programs would have a devastating effect on the economies of Marietta, Georgia and Ft. Worth, Texas, where the aircrafts are produced.”

IAM Calls for Transportation Summit

In an effort to address the seemingly perpetual crisis facing the U.S. Transportation industry, Transportation GVP Robert Roach, Jr., is calling for the U.S. Secretary of Transportation to convene a summit of top labor, management and government officials.

“We now have five airlines in bankruptcy and oil prices are artificially high.  Railroads are reaping hundreds of millions of dollars in profits while railroad workers are unable to get a fair and equitable contract,” said GVP Roach in a January 14 letter to Transportation Secretary Norman Mineta.

“If we are to have a safe, efficient Transportation industry, it is more important than ever that everyone, i.e., management, labor, and government, work towards the common goal of rebuilding the Transportation industry for our mutual benefit.” 

Texas Congressman Fights for Aerospace Jobs

Texas District 17 Congressman Chet Edwards visited Fort Worth, TX District Lodge 776 to thank IAM members who supported and worked in his campaign for re-election. Edwards was the only one of the “Texas Five” to survive a Republican redistricting plan that rearranged five Democratic districts into predominately Republican dominated districts.

Four long-time Democratic Congressmen lost their seats in the 2004 election because of the unfair scheme.

Southern Territory GVP Bob Martinez was on hand along with District 776 Directing Business Representative Pat Lane to welcome Edwards.

Edwards expressed great concern about the proposed cuts in military spending and the adverse effects they would have on the F-22 and F-35 military projects at the Lockheed Martin facility in Fort Worth. “I’m vigorously opposing the proposed Bush Administration budget cuts that could affect so many jobs here in Texas,” said Edwards.

Edwards said the budget cut proposal could be presented to the House Appropriations Committee, of which he is a member, as early as mid-January. Edwards vowed to continue his “fight” for American jobs and IAM members in our aircraft facilities

“Congressman Edwards has always been a friend of working families. He has supported the mission of the IAM members at Lockheed Martin,” said GVP Martinez. “We appreciate his hard work on this and other issues facing Texas workers today.”

U.S. Trade Deficit Continues To Rise

Concerns that the U.S. economy has become too dependent on borrowing from foreign countries continues as the U.S. trade deficit soared to an all-time high. A report last week by the Commerce Department put the deficit at $60.3 billion for November.

It marked the seventh month in 2004 in which the trade deficit set a record, causing the dollar to tumble. Imports rose 1.3 percent in November to $155.85 billion, while exports fell 2.3 percent to $95.55 billion.

The trend reflects an imbalance in the global economy that economists fear will eventually spark turmoil in financial markets. The U.S. consumer's appetite for foreign goods helps economies overseas. However, America pays its import bill by borrowing up to $600 billion a year from abroad.

Local 701 To Host 5th Annual Chi-Town Teardown

The 43rd Annual World of Wheels car show in Chicago will once again host Local 701’s annual competition where high school and college student teams will race the clock to completely tear down and rebuild an automobile engine. The event will take place at McCormick Place in Chicago, IL on January 29-30.

Now in its 5th year, the competition showcases the schools and students in today's automotive technology training programs. Students will be judged on their skills, including accuracy of the rebuild, proper use of tools and safe work methods. The team that correctly reassembles the engine in the shortest period of time with the fewest mistakes will be declared the winner.

Ford Motor Company will provide over thirty engines for the competition. All of the engines will then be donated to the competing schools. Ford will also be donating two vehicles to be raffled off between all the participating schools.

Automobile Mechanics Union Local 701 represents technicians who work in new car dealerships, truck shops and other industries. The Local sponsors the pit crew competition each year to highlight the automotive repair trade and the schools that train tomorrow's technicians.

Sleigh Named LERA President

On January 8, the IAM Director of Strategic Resources, Stephen R. Sleigh, officially began his term as the President of the Labor and Employment Relations Association (LERA). Sleigh took over the post from outgoing President Marlene Heyser of the Orange County Transit Authority.

LERA, formally known as the Industrial Relations Research Association, is the premiere organization bringing together academics, labor relations neutrals and practitioners from business and labor to discuss new ideas related to workplace relations.

Sleigh, a thirty-year member of IAM Local 126 in Chicago, will chair a LERA conference in Washington, D.C., on June 16-17 on employee benefits at risk, and the 58 th annual meeting of the Association in Boston in January 2006.

Western Territory Honors Organizing Excellence

IAM District 160 won the Western Territory’s first annual “Achievement in Organizing” award for its dedication to organizing and for becoming one of the first districts to achieve the goal of organizing at least 250 members each year.

Accepting the first-time award at a recent Western Territory staff conference, DBR Don Hursey credited his staff for all their hard work and declared that Seattle-based District 160 planned to "win it again next year!" 

The winged organizing trophy will reside in the office of the district or local lodge that wins it each year. An inscribed plaque listing the annual winners will be on permanent display in the regional office.

A second award was presented to the top organizing individual.  That honor went to DBR Robert "Bobby" Martinez, of Local Lodge 933 in Tucson, AZ. The accomplishments of DBR Martinez and his Local are even more remarkable when you consider that Arizona is a right-to-work (for less) state.

Western Territory GVP Lee Pearson complimented all locals and districts for their efforts during a tough year.  “There was a convention, a presidential election, plus all the normal duties that had to be taken care of,” said Pearson “These awards are a small token of our appreciation for the leadership and success we witnessed in 2004.”

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