Executive Pay Cuts Could Save Connecticut Jobs

After battling for months with Pratt & Whitney over ways to save more than 1,000 jobs at two facilities in Connecticut, the IAM welcomed a suggestion by Connecticut Treasurer Denise Nappier to cut executive pay as a means to keep Pratt’s Cheshire and East Hartford operations open.

“The loss of 1,000 skilled jobs at Pratt & Whitney will impact thousands more in Connecticut, in terms of the effect on suppliers and subcontractors, and on the mom and pop enterprises that form the backbone of their local economies.  As many as 6,000 jobs are at stake right now, and it is high time to take a closer look at the executive compensation practices at UTC,” said Nappier. 

According to Nappier, five top UTC executives, who raked in $70 million in total compensation last year, could easily eliminate that cash gap that P&W claims is needed to keep the facilities open and operating in Connecticut.

“By scaling back executive compensation to a more reasonable level, the company can retain these skilled jobs in Connecticut without negatively impacting the bottom line and shareholder value,” Nappier stated.

Pratt & Whitney, a highly profitable subsidiary of UTC, claims the closure of the Cheshire and East Hartford facilities is necessary due to a $20 million gap between the cost of operating in Connecticut and moving the work elsewhere. 

“Treasurer Nappier, as always, knows her facts and figures, and watches out for the fiduciary welfare of the state,” said District 26 Directing Business Representative Everett Corey. “In this case, her assessment is right on target – a few well-paid executives could, with little personal sacrifice, save the jobs of 1,000 Pratt workers and thousands more in communities across the state.”

Not surprisingly, UTC responded by defending its outsized executive compensation levels, which are among the highest in the nation. “We believe that UTC executive compensation practices have contributed to our record of outperforming our peers and delivering value to our shareholders,” said a UTC spokesman.

U.S. House Passes Extended Unemployment Benefits

With job losses continuing and long-term unemployment reaching the highest level since 1948, the U.S. House of Representatives has passed the Emergency Extended Unemployment Compensation Act (H.R. 5749) by a vote of 331-83.

Despite predictions the recession is running out of steam, last month the national unemployment rate rose to 9.7 percent. The average length of unemployment in July, 2009 was 25.1 weeks, and 22.8 percent of those unemployed were out of a job for 27 weeks or more.

The Emergency Extended Unemployment Compensation Act would provide 13 additional weeks of unemployment benefits to workers in every state who exhaust the 26 weeks of regular unemployment benefits. And, in states with high unemployment, an additional 13 weeks would be available, for a total of 26 weeks of extended benefits. All benefits would be paid out of the federal unemployment trust fund, which has over $35 billion in reserves.

The legislation now goes to the Senate with a good chance to pass because it is similar to a provision included in the war supplemental spending package approved by the Senate last month.

Congress has extended unemployment benefits seven other times during periods of economic difficulty: 1958, 1961, 1972, 1975, 1982, 1991, and in 2002.

Read more at: http://www.huffingtonpost.com/2009/09/21/house-moves-to-extend-une_n_293073.html

G.E. Balks at Talks to Save New Mexico Jobs

In a move that underscores General Electric’s desire to close a jet engine facility in Albuquerque, NM, the company has refused thus far to extend the 60-day “meet and confer” period designed to find ways to keep the facility open. The 40-year old plant is responsible for more than 1,300 local jobs and generates more than $30 million in annual economic activity.

“We will continue the fight and make every effort to save these jobs, but it becomes more obvious every day that we do not have a willing partner on the other side of the table,” said Local 794 President Ernest “Red” Dow. “I firmly believe the decision to close the Albuquerque plant was made long ago and that G.E. had no intention to seriously consider alternative proposals.”

In addition to surface bargaining in Albuquerque, General Electric CEO Jeffery Immelt ignored invitations from the New Mexico congressional delegation to discuss the proposed closure and also declined to discuss potential upgrades to the facility that could dramatically increase productivity.

“After speaking out publicly and to considerable acclaim about the need to preserve high-skill manufacturing jobs, G.E. has failed utterly to put those words in to practice when it had the opportunity,” said Western Territory GVP Gary Allen. “Any future statements from G.E. should be weighed accordingly.”

Minorities Bearing Recession’s Brunt

The issues of poverty and race took center stage at the 39 th Annual Legislative Conference of the Congressional Black Caucus (CBC) this week.

The 42-member CBC and thousands of guests converged on Washington, D.C., for a four-day debate about legislative and policy issues impacting the African-American community.

Organizers focused on a newly released U.S. Census Bureau report that showed 39.8 million people living in poverty in 2008, 2.5 million more than 2007. One in four African-Americans were found to be living below the poverty level, with a disproportionate amount continuing to suffer from low wages and no health insurance.

The overall poverty level is the highest since 1997. The report shows children have been especially hard hit, with 6.3 million considered poor, 750,000 more than 2007. Researchers say the situation will only get worse this year as more and more people become unemployed.

Speakers during Wednesday’s opening session included Department of Labor Secretary Hilda Solis, Senate Majority Leader Harry Reid and Speaker of the House Nancy Pelosi.

“As we strengthen our economy for all Americans, we must pay particular attention to those who have been facing long-term economic hardship,” said Pelosi promising President Obama’s policies on job growth, education and health care will help alleviate the pain.

“You are bearing the burden of this recession,” said Solis, the first Hispanic to take the helm as Labor Secretary. “In communities like mine, we saw signs of this happening three years ago… When I came into the Department of Labor there was a sigh of relief that someone understood what it meant to stand up for working-class people, poor people and people of color. Our premise is to make sure we cast the net out as far as we can and leave no community behind.”

WWW Center Holds New Class for Metal Trades Locals

Education Rep. Henry Bagwell leads discussion during a new class to enhance leadership skills for IAM members associated with Metal & Atomic Trades Councils.

IAM local lodge officers who are associated with Metal & Atomic Trades Councils recently attended a new class at the William W. Winpisinger Education and Technology Center that was specially developed to provide the skills needed to take more active roles in their Councils.

“This is the start of building an ongoing leadership corps at Metal & Atomic Trades Councils,” said Winpisinger Center Education Representative Henry Bagwell, who coordinated the course with the Collective Bargaining, Federal Employees and other Departments at IAM Headquarters.

Worksites covered by with Metal & Atomic Trades Councils have unique issues because many of the work groups are represented by different international unions and must bargain together with employers. IAM officers and Business Representatives from government sites, refineries, chemical manufactures and shipyards worked together at the Winpisinger Center to develop strategic plans to use in their locations. “This course gives our locals a good foundation to become more pro-active in the Councils to improve IAM members’ representation,” said IAM Collective Bargaining Coordinator Jim Price who helped teach the class.

“It is imperative that IAM leaders and members communicate within the Metal & Atomic Trades Councils,” said Southern Territory GVP Bob Martinez, who asked the Winpisinger Center and IAM Headquarters staff to develop training for IAM leaders in these Councils. “I want to thank Winpisinger Center Director Chris Wagoner and his staff for developing and delivering the education and training for our current Council leaders and our future Council leaders and members. We look forward to more members attending these types of sessions in the future.”

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