Machinists, Cessna Open Negotiations

Negotiations for a new contract covering 4,300 IAM members at Cessna Aircraft got under way this week in Wichita, KS, where IP Tom Buffenbarger, GVP Bob Thayer and GVP Bob Martinez joined Local 774 negotiators for the opening round of talks.

Key concerns for members at Cessna include rising health care costs; job security; wages; pensions and outsourcing. “The rising cost of health care is a critical issue facing Cessna, its employees and every employer in America,” said IP Buffenbarger, who called on the government to address health care as a national issue deserving a national solution.

The Cessna talks are expected to have far-reaching implications with additional negotiations between the IAM and Kansas plane-makers Raytheon and Bombardier set to take place in 2005 and 2006 respectively.

In June, members of Local 774 voted by a 99 percent margin to authorize a strike at Cessna Aircraft if the company fails to make a satisfactory offer. IAM members at Cessna are scheduled to vote on a new labor agreement at the Kansas Coliseum on Sept. 11. The current contract expires at midnight Sept. 12.

IAM Files Second Suit Against UAL Execs

Less than a week after charging UAL senior executives with illegally breaching their duties as Trustees of United Airlines employee pension plans, the IAM filed a second suit in U.S. District Court charging the same executives with breaching their fiduciary duties as Directors and Officers of UAL Corp.

Named as defendants in both lawsuits are Chief Executive Officer Glenn Tilton, Chief Financial Officer Frederic Brace and Chief Operating Officer Peter McDonald. “These officers entered into a financing deal that prohibits the company from funding our pensions,” said Randy Canale, president of IAM District 141, representing 37,000 active and retired employees covered by pension plans at United. “Our pensions are payment for the services we provide, and we are demanding payment.”

The lawsuits were triggered by United’s July 23 announcement that it would no longer fund pension plans due to terms it negotiated for new Debtor in Possession (DIP) financing.

A United spokesperson called the suit “baseless” and chided the union for “ naming these officers personally when it was a corporate decision.'' The comment drew a sharp reaction from Transportation GVP Robert Roach, Jr. “When those in position of authority make decisions that affect people's ability to buy food, pay rent and obtain proper health care, they are making personal decisions,” said Roach. “We are holding those responsible personally accountable.”

Teresa Heinz Kerry Meets With Senior Caucus

Fresh from her nationally televised address to delegates at the Democratic National Convention, Teresa Heinz Kerry met with 150 members of the Democratic National Committee Senior Caucusand pledged to help in the fight for America’s struggling senior citizens.

"Life is not a choice between poverty and drugs, between poverty and wellness,” said Kerry. “If you send John Kerry to the White House he will help us build a better country, a safer country and a happier country. It is time to bring security and dignity to the lives of all seniors."

Kerry went on to describe the four major components of her husband's health care plan, which include cutting insurance premiums, covering all Americans with quality care, providing affordable prescription drugs and eliminating waste and inefficiency in the health care system.

“Teresa Kerry has a solid record of helping seniors through foundations she supports,” said Maria Cordone, IAM Director of Retirees and Community Services. “It’s a reflection of her concern that she chose to meet with our caucus immediately following her speech, when demands on her time were at their highest.”

Boeing Reports Profits Up On Defense Deals

Surging military sales helped Boeing post a $607 million profit in the second quarter, up significantly from the same period last year. Revenues from Boeing’s defense business rose three percent to $13.1 billion between April and June - with military deals totaling $7.2 billion.

While the commercial side of Boeing’s business has suffered since the September 11 attacks, Boeing CEO Harry Stonecipher now says he expects Boeing to deliver more jets than forecast in 2005. "Boeing delivered strong results in the second quarter as we continued to execute well in our core businesses," said Stonecipher.

The news was a turnaround for the company, which posted a $192 million loss last year. Stonecipher's comments came during a conference call regarding Boeing's second-quarter performance.

The improvement led the firm to announce two weeks ago that it would be adding 3,000 workers - its first hiring drive since it axed 42,000 jobs in the months following the September 11 attacks.

Kerry and Edwards Release Campaign Book

Democratic Presidential candidate John Kerry and running mate John Edwards released their campaign book, Our Plan for America. Stronger at Home, Respected in the World, which includes detailed plans to create and keep good jobs in America.

The Democrats propose to end tax breaks for companies that send jobs overseas as well as implement a New Jobs Tax Credit, rewarding companies that create jobs in America.

Fighting the war on terrorism, making the U.S. independent of Mideast oil and improving foreign relations are also addressed in the 250-page book, which contains excerpts from speeches and photos from the campaign trail.