iMail Thursday, December 9, 2004

Take Action for US Airways’ Retirees

Thousands of IAM retirees at US Airways need your help.
On December 3, 2004, attorneys for the bankrupt airline walked into an Alexandria, Virginia bankruptcy court and asked a judge to reject labor agreements and terminate retiree health insurance benefits.

The Machinists Union is representing all IAM members, including retirees, in direct discussions with US Airways. IAM attorneys are also representing and defending retirees in bankruptcy court.

You can help by visiting, calling, emailing, writing and faxing Congress and urging your elected representatives to contact US Airways CEO Bruce Lakefield and demand that he work with the Machinists Union to preserve retiree insurance benefits.

Information on how to contact Congress and a sample letter that can be automatically emailed by simply entering your home address are available on the IAM website under Action Alerts.

Another Bad Decision by Bush NLRB Appointees

Bush appointees to the National Labor Relations Board (NLRB), now a majority, have added to their growing list of anti-worker decisions. The latest case involves an extended care facility in Michigan that posted work rules that broadly prohibit abusive and profane language, harassment and abuse.

The Bush appointees held that the rules are merely to maintain order in the workplace. The minority members pointed out the “ill-defined scope” of the rules could cause employees to “refrain from voicing disagreement with their terms and conditions of employment.”

The NLRB historically has recognized that speech gets heated in union activity and that expressions of displeasure and even anger are protected under the National Labor Relations Act. The Bush appointees’ decision blurs that protection and raises the possibility of using the rules to discourage legitimate union activity.

The Bush majority has been overturning many other historical precedents recently. They have taken away organizing rights from graduate students at private colleges, struck down attempts to organize disabled employees at rehabilitation work programs and made it harder for temporary workers to organize. Another key target of the Bush board is pending decision that could make card-check elections more difficult and possibly illegal.

‘Above and Beyond’ Plan is Beyond Belief

A select group of corporate executives at Colgate-Palmolive, which announced earlier this week it is eliminating 4,400 jobs, will continue to receive up to $11,500 each year to spend on fishing, boating, golf, movie tickets and sporting events.

The perks program, called the “Above and Beyond” plan, covers 800 Colgate-Palmolive executives and was uncovered by the Associated Press during a review of Security and Exchange (SEC) filings. Under the plan, the company will also pay for executives’ locker fees, court rentals, personal trainers, video rentals, and pet sitting costs.

Colgate-Palmolive, which makes Colgate toothpaste, Softsoap and Ajax cleaner said it is cutting 12 percent of its workforce and closing one-third of its factories to improve profits. The company had $9.9 billion in sales last year and paid its top five executives $23.3 million in cash and stock, plus another $9.1 million in stock options. The company's highest paid executive, chairman and CEO Reuben Mark, made $10.4 million in salary, bonus and stock awards, according to the AP.

The program also pays for executives’ housekeeping, house painting, snow removal, swimming pool care, landscaping, gutter cleaning and chimney sweeping bills because “routine household chores can consume precious personal and family time,” according to the SEC filing.

Major Retailers Block Effort to Protect U.S. Textile Jobs

Importers representing prominent American retailers including Wal-Mart, The Gap, J.C. Penney, Federated Department Stores and Liz Claiborne filed a lawsuit opposing limits on imports of Chinese-made apparel and textiles. The suit is in response to a petition filed on behalf of hard-hit domestic textile manufacturers who fear the loss of market share and jobs.

The case comes just weeks before the looming expiration of global textile and apparel quotas, which will result in huge gains for China and India at the expense of textile and apparel manufacturers in the United States.

U.S. textile manufacturers argue in the petitions that China’s low-cost producers would cripple what little remains of the U.S. industry if left unrestrained. Despite the impact on U.S.-based manufacturing jobs, the importers requested an injunction to stop the government from acting on those petitions.

China already supplies 85 percent of the U.S. market with an estimated $79.7 billion worth of textiles. Up to 600,000 of the 700,000 remaining textile jobs in the U.S. will be at risk when the quotas are lifted.

Wal-Mart Spends $18 Billion on China Goods

Retail giant Wal-Mart says its inventory of products produced in China is expected to hit $18 billion this year, contributing significantly to the United States’ expected $150 billion trade deficit with China.

Wal-Mart’s inventory of products from China has increased at an annual rate of 20 percent over the past two years, a trend that is expected to continue.

With more than 5,000 enterprises maintaining a steady supply alliance with Wal-Mart, China continues to profit from massive trade with Wal-Mart. It is estimated that if Wal-Mart were an individual economy, it would be China’s eighth largest trading partner, ahead of countries such as Russia and Australia.

Over 70 percent of products sold in Wal-Mart are produced in China, a country that continues to hire cheap labor and engage in unfair labor practices.

Army Stops Halliburton Payment

The inspector general for Iraq's reconstruction agreed with U.S. Army officials to penalize Halliburton Co. for its work in the war-torn country by withholding payments to the company.

In the report, Inspector General Stuart Bowen Jr., concluded that Halliburton’s record keeping was so poor that auditors couldn't determine if the firm had fulfilled its obligations to the U.S. occupational government.

At issue is nearly $2 billion in bills submitted by the Halliburton subsidiary Kellogg Brown & Root that, officials say, lacked proper records. These bills were part of its exclusive contract, worth up to $10 billion over time, to provide housing, food and other logistical support for troops and other operations in Iraq.

Halliburton, formerly headed by Vice President Dick Cheney, and its subsidiary Kellogg Brown & Root Inc., has been enmeshed in controversy for months over its massive Army contract to handle logistical support in Iraq and Kuwait.

Varsel to Retire as Airline Coordinator

Jim Varsel, (left) the Transportation Department’s Airline Coordinator since 2001, announced he will retire on January 1, 2005, after more than 42 years as an IAM member and representative. “Jim has performed an exceptional job supporting our airline and railroad members through the most turbulent period in the history of these industries,” said GVP Robert Roach, Jr. “In his many roles at the Local, District and International levels, IAM members have benefited from his decades of experience and leadership. We wish him well as he enjoys the retirement he greatly deserves.”

Assuming the role of Airline Coordinator will be Grand Lodge Representative Tom Brickner (bottom-left). A member of Local Lodge 1322 in New York since he began his career as a Ramp Serviceman at United Airlines in 1970, Brickner was appointed to the Grand Lodge staff in 1993 and participated in negotiations at United Airlines, US Airways, Alaska Airlines and several smaller airlines and fixed base operators.