Tuesday, August 23, 2005

Thousands March for New Contract at Boeing

Nearly four-thousand IAM members and their families turned out in SeaTac, WA, this weekend to send a strong message for Boeing to “Do the Right Thing” as negotiations for a new agreement moved into the second week of round-the-clock meetings.

The roar hundreds of members on motorcycles greeted the Main Table negotiators, Aerospace Coordinator Dick Schneider; District 751 President Mark Blondin; District 70 President Steve Rooney, District 24 President Bob Petroff and Subcommittees as they exited the hotel where meetings between the IAM and Boeing are taking place. Chanting, fist pumping, sign waving union members filled the streets, stretching the entire length of the half-mile route to nearby Angle Lake. 

District 751 President Mark Blondin thanked the members for their support and solidarity and reported on the progress so far at the bargaining table – explaining language that has been agreed upon and emphasizing that our top issues, including pensions, health care and job security are still on the table.

Demonstrating the high level of community support for IAM members at Boeing, King County Executive Ron Sims, Seattle Mayor Greg Nickels, and Washington State Labor Council President Rick Bender also addressed the enthusiastic crowd at the Doubletree Hotel in SeaTac, WA.

Groundbreaking Set for Senior Housing in Cleveland

The IAM will be part of a groundbreaking ceremony on August 25, 2005, at 2:00 p.m. for the rehabilitation of an office building in Shaker Heights, Ohio that will be converted into 42 units of safe and secure housing with support services for seniors.

When the year-long renovation is completed, the property will be named for former IAM President William W. Winpisinger (left), who was dedicated to making sure that working families and seniors had safe and affordable housing.

The senior housing project, a $4,300,000 improvement in the Shaker Boulevard Corridor, is a collaborative effort by the IAM, the Elderly Housing Development & Operations Corporation (EHDOC) , the City of Cleveland, the State of Ohio Housing Finance, and U.S. Department of Housing & Urban Development to address the critical shortage of affordable housing for senior citizens.

IAM President Tom Buffenbarger, George Kourpias, former IAM President and current President of the Alliance for Retired Americans, and other invited dignitaries from the Ohio area will attend the groundbreaking event at 12025 Shaker Boulevard, Cleveland, Ohio, directly across the street from the building to be renovated.

Whirlpool Signs Deal to Acquire Maytag

Despite concerns that antitrust issues could scuttle the proposed $2.7 billion deal, two of the nation’s largest appliance makers announced an agreement this week to merge. The agreement calls for Whirlpool to acquire all outstanding shares of Maytag in a cash and stock merger valued at $21 per share.

Analysts estimate a combined Whirlpool-Maytag company would capture nearly half of the market in major appliances in the United States, with General Electric and Sweden's Electrolux controlling approximately 46 percent of the U.S. market.

Concerns among employees about job losses in the wake of a merger were fueled by a letter from Maytag CEO Ralph Hake, who said “it is reasonable to expect that some jobs will be eliminated."

"We don't know what Whirlpool's intentions are," said Steve Sleigh, IAM’s Director of Strategic Resources. "We suspect they will move a great deal of Maytag’s current production to facilities they have in Mexico and China. We have not received any assurances from Whirlpool that they wouldn't do that."

Even if federal regulators block the deal, Maytag could lose employees and customers during the lengthy review process.

Getting Hosed at the Pump

Americans continue to be hit hard by surging oil prices – most notably at the gas pump, where prices around the country are averaging a record $2.61 a gallon. Gas prices have jumped 36 percent, or 72.8 cents, from a year ago.

After peaking at over $67 a barrel last week, crude oil prices continue to hover over $60 a barrel, a 40 percent increase from a year ago.

As a result of the skyrocketing oil and gas prices, Americans are cutting back on other costs, including food and medical care. With numerous commercial airlines recently raising domestic fares, consumers are also seeing the ill effects of increasing jet fuel costs. And the worst may be yet to come. Winter heating bills will become increasingly hard for working families to bear in the Northeast and Midwest.

Walt Disney Charged for China Abuses

Two Chinese factories producing books for the Walt Disney Company have been charged with severe labor abuses, including unsafe working conditions and mandatory, unpaid overtime.

The National Labor Committee, an anti-sweatshop advocacy group, made the charges after releasing an 11-minute videotape detailing abuses at the Hung Hing and Nord Race factories in China. With their faces hidden, workers displayed their bandaged fingers and cut hands, which they claim was a result of unsafe equipment. Workers from the two factories also complained of extreme heat, long hours and unpaid, forced overtime.

The Walt Disney Company said in a statement they have contacted a non-profit social auditing and training firm to conduct an investigation of the accusations regarding the Hung Hing and Nord Race factories. Although the Hung Hing factory produces products primarily for Disney, they also produce products for Wal-Mart and other corporate giants in the United States. 

Health Care Debt on the March

Health care debts continue to grow for Americans of all ages, according to a Commonwealth Fund Biennial Health Insurance Survey. The survey found that about 37 percent of adults, both insured and uninsured, have unpaid medical bill problems or medical debt.

In fact, 62 percent of those who reported problems were insured at the time they faced extreme financial burdens from their medical problems. Additionally, two-thirds of those surveyed with accumulated health care debt pay at least 10 percent of their annual income into health insurance premiums.

The survey also found that those who have medical coverage, but lack prescription drug coverage, are more likely to sink into medical debt. Almost 48 percent of adults without prescription drug coverage reported medical debt, compared with 33 percent who receive prescription drug benefits.