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Thursday,  February 27,  2003

Labor Secretary Declares War on Unions
“U.S. Department of Labor Secretary Elaine Chao is being set up by the Bush Administration to become the most anti-union, anti-worker Labor Secretary in history,” said IP Tom Buffenbarger following an incendiary meeting between the Secretary and members of the AFL-CIO Executive Council.

Sparks flew when the labor secretary responded to a question about costly new financial disclosure rules by reciting from a list of previously indicted union officials, including seven former IAM representatives.

“What the secretary failed to note, was that it was IAM auditors who uncovered the abuses, removed the individuals, and brought the matter to the attention of Labor Department officials in the first place,” said Buffenbarger. “The IAM does not tolerate any misuse of members’ dues and the Secretary is fully aware of that.

“It’s no secret the Bush administration distrusts unions,” said Buffenbarger. “It’s less clear what they expect to gain by using the Department of Labor (DOL) to slander U.S. unions and union members.

“This move places the DOL squarely in the service of privately-funded conservative organizations advocating a range of right-wing causes, including the elimination of workers’ rights, civil rights and women’s rights, by whatever means possible,” said Buffenbarger.

Pension Plan or Pension Scam?
A plan by President Bush’s Treasury Department to allow corporations to convert traditional employee pension plans to so-called cash balance plans could dramatically cut retirement benefits for millions of middle-aged and older workers.

The IRS banned the controversial practice in September 1999, after benefit cuts for older workers led to widespread allegations of age discrimination against companies that made shift to cheaper, cash balance pensions.

According to the Government Accounting Office, annual pension benefits for older workers can drop by as much as 50 percent after a company converts from a traditional defined benefit plan to a cash balance plan.

While the 1999 moratorium temporarily blocked the practice, there are still more than 800 age discrimination complaints currently pending before the EEOC based on cash balance conversions. The Bush administration is widely expected to lift the ban, giving a green light to large, profitable corporations to resume their multi-billion dollar raids on employees’ pensions.

To view an interview with Vermont Representative Bernie Sanders on the effort to protect employee pensions, go to  http://216.211.131.3/iamaw/video.ram?c=4031.

Bush Recession Erodes Jobs Base
The Bush recession sweeping the nation erased millions of jobs and Union membership rolls reflect that gloomy reality. Union membership fell to 16.1 million in 2002, compared to 16.4 million in 2001 and 16.3 million in 2000, according to the Bureau of Labor Statistics. Union membership has hovered around the 15 million mark for the last decade.

Although more than a half-million workers joined unions last year, that gain did not offset post-September 11 losses in traditionally unionized sectors like airlines, manufacturing, construction and hotels. The United States lost 1.65 million manufacturing jobs since January 2001. The number of union members in the manufacturing sector fell from more than four million in 1991 to fewer than 2.5 million in 2002.

Shifts in union membership by gender, race and employment sector indicate union membership is moving along with the economy. Women now make up 42 percent of union members. More than 1.6 million Hispanic workers are union members and the number of professional workers with a union card is rising steadily.

Union workers earn 26 percent more in wages than non-unionized workers, the Bureau of Labor Services notes. Last year, union workers made an average $740 a week, compared to $567 for non-union workers.

Hart Poll Finds Growing Support for Unions
New research by Peter D. Hart Research Associates finds that Americans need and want union representation—more than half of U.S. workers say they would join a union tomorrow if given a chance.

That translates into 30 to 40 million workers who would join a union if given a free choice—but few get that chance. Employers routinely violate worker rights to freely organize unions and gain a voice in the workplace. Ninety-five percent of employers fight worker efforts to form unions, including a third who illegally fire union supporters, according to Cornell University researcher Kate Bronfenbrenner.

The AFL-CIO and its affiliates plan a movement-wide campaign to expose the immoral and illegal tactics employers use to thwart worker efforts to form unions.  Independent research shows that most Americans do not know what workers must endure just to exercise their right to a union. The freedom to do so is a basic civil—and human—right. The trade union movement aims to involve community and elected leaders in demanding that free choice for America’s workers.

Consumer Confidence Hits New Low
A 15-point drop in the closely watched Consumer Confidence Index surprised analysts, shocked Wall Street and fueled fears that consumers may scale back on buying everything from houses to hamburgers.

The monthly index fell from 78.8 in January to 64.0, hitting a nine-year low and marking the sharpest one-month drop since the 17-point plunge that followed the 9-11 attacks.

The index is used to forecast consumer spending, which accounts for the bulk on the nation’s economic activity.

Southern Territory: Five Wins, Two Weeks
On the heels of two District 75 organizing wins last week (and two other wins for District 110 in North Carolina), District 75 racked up yet another organizing victory when the employees of Dyncorp C-12 at Ft. Rucker, AL voted for IAM representation on Feb. 25. These 10 employees maintain the C-12 at Cairns Field. They work alongside members of Local Lodge 2003 at Ft. Rucker who maintain helicopters of the U.S. Army.

“They saw the advantages of improved wages, benefits, seniority and a pension plan that represented employees enjoyed. They now have a chance to collectively bargain these items and more,” said District Organizer Ray Moffatt. “They are excited to be part of the IAM.”

“I can’t tell you how pleased I am with District 75 and the organizing committees,” said Southern Territory GVP George Hooper. “They are doing a bang-up job. I’m sure our newest members will be very happy with the choice they made. All I can say is, ‘keep it up!’”