www.goiam.org
Tuesday,
December 10, 2002
Bankruptcy
Restructuring Underway at UAL
Following the
Dec. 9 bankruptcy announcement by United Airlines, a court hearing was held
where U.S. Bankruptcy Court Judge Eugene R. Wedoff authorized continued payment
of wages and salaries for United Airlines employees. The judge also approved
disbursement of funds to maintain health benefit programs for employees and
family members.
The nation’s second largest carrier entered Chapter 11 bankruptcy protection
with $1.5 billion in financing to maintain normal operations during the initial
phase of the court supervised restructuring.
“The announcement that United Airlines filed for bankruptcy is indeed a
disappointment for United’s employees and their families, but it is not a reason
for alarm” said District 141 and 141-M presidents Randy Canale and Scotty Ford.
“The IAM has resources and experience in this area and we are primed to play an
active role in United’s recovery.”
Both district presidents stressed the need to avoid finger pointing. “Despite
the difficulties that brought us to this point, we must now come together and
focus our efforts on the survival of the carrier,” said Canale and Ford. “Our
careers and the welfare of our co-workers, friends and families depend on our
very best effort in this regard.”
In related airline news, US Airways held a meeting with IAM representatives
where it confirmed published news reports that the Retirement Systems of Alabama
(RSA) is calling for an additional $200 million in annual labor savings. RSA is
providing US Airways with $500 million in Debtor in Possession (DIP) financing
to aid in its bankruptcy recovery efforts.
Additional meetings between US Airways and labor groups will continue throughout
the week. Mechanic and Related representatives from District 141-M are scheduled
to meet with the carrier on Wednesday and District 141’s Fleet Service
representatives will be in discussions with the carrier on Thursday. Additional
information is available on the district websites at
www.iam141.org and
www.iam141m.org.
Kennedy To Fight for
Universal Health Care
Sen.
Ted Kennedy, D-MA, says he will push for universal health care, a
prescription drug plan and increased Medicare reimbursements for
providers when the 108th Congress convenes in January.
Kennedy said that quality, affordable health insurance for every
American is “a matter of simple justice.”
He outlined a plan which requires employers with five or more workers to
provide health insurance to workers and their dependents. Under that
plan, employers would pay 75 percent of the cost of coverage and
employees would pay 25 percent. Earlier, former VP Al Gore endorsed a
single-payer health care system. Clearly Democrats see health care as
major priority in the new Congress. And it will surely rank high on the
issues list in 2004 jockeying for the White House.
More than 41 million Americans lack health insurance. More than 1.4
million lost coverage in the past year, and 16 percent of all Americans
in families headed by a worker lack health coverage.
Jobless Numbers Hit
Eight-Year High
The
nation’s unemployment rate jumped to an eight-year high of 6 percent in
November and the nation lost another 40,000 jobs last month. In a touch
of bitter irony, the Republican-led House of Representatives adjourned
for the year without taking any steps to assist the hundreds of
thousands of jobless Americans whose unemployment benefits will run out
on Dec. 28.
“The solution President Bush offers to end the recession is more of the
same old snake oil—more tax cuts for the wealthy, more handouts for
corporate America,” scoffed IP Tom Buffenbarger. “Working families face
real problems in this latest Bush-sparked recession. We need real
solutions.”
Sen. Lott Apologizes
for Racist Remarks
Senate
leader Trent Lott, R-MS, backed away from his declaration that the U.S.
would have been better off if race-baiting segregationist Strom Thurmond
had won the White House in 1948.
Lott called those remarks “a poor choice of words.” He apologized to
“anyone who was offended by my statement.” Lott made that “statement” at
a celebration honoring retiring Sen. Strom Thurmond, R-SC. on his 100th
birthday. Lott reminded guests that Mississippi voters backed Thurmond
who ran on the Dixiecrat ticket in 1948.
The Dixiecrat Party’s platform declared “We stand for the segregation of
the races and the racial integrity of each race.”
Despite Mississippi’s fervent support, Thurmond lost that race to Harry
S. Truman.
Arbitrator Raps
Ederer Crane Miscue
When
Ederer Crane, a Seattle-based shop, laid-off longtime IAM member Don
Miller out of seniority order, the Machinists immediately filed a
grievance. The IAM fought the company’s contract interpretation all
along the way and that grievance ended up in a hearing before a neutral
arbitrator. The arbitrator rejected the company’s contract
interpretation and issued a ruling which resulted in job reinstatement
and $12,500 in back pay and benefits award for Miller.
Machinist Maintenance at Magic Mountain
The
113 workers who
build,
repair and maintain the rides and booths at the Six Flags Magic Mountain
Amusement park in Valencia, California, voted to join the IAM and
will now choose a
committee and begin preparations for securing their first collective
bargaining agreement. The new IAM member’s cited disrespect from
management, low pay and lack of job security as reasons for seeking IAM
representation.
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