IAM Unveils Reform Strategy for AFL-CIO

The IAM unveiled a seven-point strategy this week to help guide the debate over reform at the AFL-CIO. The proposals in Use Our Power are based on labor’s strengths rather than weaknesses and are certain to fuel discussions over the future of the AFL-CIO. View a video of the IAM proposals.

“The American Labor Movement may be a lot of things, but it is not politically impotent, financially bankrupt or lacking in allies,” said the IAM report, which contains detailed recommendations about how the labor movement, with its $6.7 billion in disbursements and 13.3 million members, can better use its financial and human resources.

“Here at the Machinists Union, we believe the current fight for control of the AFL-CIO is a waste of time, energy and resources,” said the report, commissioned by IP Tom Buffenbarger. The IAM is opposed to controversial reforms proposed by some affiliates that would force smaller unions to merge with the larger AFL-CIO affiliates.

Among the key recommendations in “Use Our Power” are: invest $200 million to create a labor-owned cable network that projects a positive image of union members and the American labor movement; establish a health care database to leverage the purchasing power of over 50 million union members; and focus political efforts on states with heavy concentration of union households.

Additional suggestions in the 11-page strategy document include: expanding AFL-CIO support for civil rights and women’s movements; reevaluate how disputes are resolved within the AFL-CIO; and provide affiliates with far more information and input over the development of AFL-CIO programs and budgets.

Download a printable version.

IAM Members to Vote at US Airways

The U.S. Bankruptcy Court in Alexandria, VA was filled to capacity last week as Judge Stephen Mitchell granted US Airways’1113(c) motion to terminate labor agreements covering nearly 8,500 IAM members at the nation’s seventh largest airline. The judge directed US Airways and the IAM to maintain “status quo” under current agreements until IAM members at US Airways vote on “final offers” from the company.

If the offers are approved, they will become the new collective bargaining agreements at US Airways. If the offers are rejected, bankruptcy law allows the existing collective bargaining agreements to be dissolved and the company’s final offer would be withdrawn. Results of the vote are expected by Jan. 21. Click here to view an IAM video taken outside the courthouse in Virginia and here to view an interview with Transportation GVP Robert Roach, Jr. Additional information is available at District 141 and District 142.

GOP Readies Flex-Time, Comp Time Bills

The Bush administration and GOP leaders in Congress are preparing to introduce so-called “flex time” legislation that would kill the 40-hour workweek and replace it with an 80-hour, two-week pay period.

In a 2004 analysis of previous flex time proposals, Pennsylvania State University economics professor Lonnie Golden wrote that such legislation would allow employers to schedule hourly workers up to 50 hours in a given week and would not be required to pay time-and-a-half for any of the 10 hours of overtime work, provided the same workers are scheduled for no more than 30 hours in the following week.” The new legislation is expected to be similar to earlier proposals.

GOP leaders also plan to revive previously defeated legislation allowing employers to substitute comp time for time-and-a-half overtime pay.

“ It (comp-time) is nothing more than a scheme to allow employers to avoid paying for overtime, a scheme that will result in longer hours, lower incomes and less predictable workweeks for American workers,” said Ross Eisenbrey, vice president of the Economic Policy Institute (EPI), in an analysis of the past Congress’ comp time legislation.

Emergency Relief Motion Buys Time at United

On Jan. 6, 2004, U.S. Bankruptcy Court Judge Eugene R. Wedoff approved a United Airlines 1113(e) emergency motion giving United Airlines temporary relief from terms established in the current IAM –UAL contracts covering members of District 141.

The temporary relief motion calls for an 11.5 percent wage reduction and a 30 percent reduction in the amount of pay employees would normally receive for sick days. The changes took effect on Jan. 6, 2005 and run through April 11, 2005.

As part of the motion for temporary relief, United agreed to suspend activity on a separate 1113(c) motion calling for the court to reject contracts and terminate pensions for members of District 141. A trial on the 1113(c) motion was set to begin this week.

Meanwhile, the same bankruptcy judge in Chicago refused to approve a controversial agreement between United and the Air Line Pilots Association (ALPA) that was predicated on termination of pension plans for all UAL employees groups.

“The IAM will not allow the company to enter into any agreement that would adversely affect our members,” said Transportation GVP Robert Roach, Jr. “The judge’s ruling paves the way for more meaningful discussions with United on preserving our members’ pensions.”

Jobless Claims Surge by 43,000

Despite rose-colored projections by the Bush administration of increased economic activity and job creation, the U.S. Labor Department reported a surge this week in initial jobless claims to their highest level since late September.

Nearly 340,000 Americans filed first-time claims for state unemployment benefits during the week that ended Jan. 1, 2005. The figure is up from 321,000 the week before and was the highest one-week gain since the week that ended on March 30, 2002.

Labor Department analysts blamed the holiday-shortened workweek for the drop, but failed to account for the latest four-week average increase in jobless claims.