IAM Wins Breach of Contract Suit at NWA

A New York Supreme Court Judge ruled last week that Northwest Airlines violated terms of an agreement with IAM District 143 when it refused to repurchase outstanding Series-C preferred shares in accordance with the IAM-Northwest Airlines (NWA) 1994 Employees Stock Ownership Plan (ESOP).

In 1993, IAM members at Northwest agreed to help the airline to restructure outside of bankruptcy, and accepted reduced wages in exchange for preferred shares in the company. The IAM-Northwest ESOP agreement required the company to redeem all outstanding ESOP shares from IAM members by October 30, 2003 at a “put price” of $46.96 per share. 

On June 1, 2003, Northwest elected to repurchase all unredeemed shares for cash, however the airline announced on August 1, 2003, that it would not do so. The IAM immediately filed a lawsuit in New York State Supreme Court to compel Northwest to repurchase the unredeemed shares, damages and other relief. The complete decision is available here.

“Corporate America must learn that when commitments are made to working people, they must be kept,” said Transportation GVP Robert Roach, Jr.

“The IAM will always ensure companies and their officers are held responsible for the promises they make to our members.”

IAM District 143 represents more than 17,000 active and furloughed Northwest Airlines employees in the Equipment Service, Customer Service, Reservation, Flight Simulator Technician, Office & Clerical, Flight Kitchen, Plant Protection and Stores classifications.

Public Sours on Presidential Performance

President Bush's job approval ratings sank to new lows last week according to polls showing him losing support among self-described conservatives, evangelical Christians and other groups of former supporters.

A recent CNN-USA Today-Gallup poll showed support for the President dropped from 52 to 45 percent since last Thursday. A CBS News poll released earlier in the week found Bush's approval slipping six points to 43 percent.

The polls come after Congress and the president intervened in the case of Terri Schiavo, a 41-year-old woman whose feeding tube had been removed. The intervention was widely unpopular, even among conservatives and evangelicals. The poll results also reflect widespread dissatisfaction with rising gas prices and the president’s campaign to privatize Social Security.

The Gallup poll of 1,001 adults was taken Monday through Wednesday and has a margin of sampling error of plus or minus 3 percentage points. The CBS News poll of 737 adults was taken Monday and Tuesday and has a 4 point margin of error.

Union members and retirees from Alabama to Alaska are speaking out against President Bush’s plan to privatize Social Security.

Join National Day of Action Events on March 31

On March 31, the AFL-CIO will be holding a National Day of Action for Retirement Security focusing on the role of Wall Street firms, particularly Schwab and Wachovia, who are leading supporters of the Bush plan to privatize Social Security.

These investments firms are well positioned to make huge profits managing private accounts. Let these firms know that their support for privatization is a conflict of interest with the retirement security of their customers who have entrusted their savings to them.

Go here for a chart of actions being planned at more than 70 locations across the country. Please check for an action near you and plan to participate.

AFL-CIO Hosts Organizing Summit

The Department for Professional Employees, AFL-CIO (DPE) hosted a conference on Organizing Professionals in the 21st Century where national and local union organizers, examined successful strategies and newly commissioned research designed to organize professional and technical workers, the fastest growing and one of the most heavily unionized segments of the economy.

Union leaders participated in workshops on international organizing, organizing in female dominated professions and organizing the information technology sector.  Speakers covered topics such as life-long learning, the changing demographics of the professional workforce and multi-union campaigns.

"The uncertainty of the workplace and the rampant assault on wages, benefits and pensions is not limited to blue-collar workers," said Steve Hantzis, IAM Grand Lodge Representative who took part in the organizing summit. "Salaried professionals are increasingly drawn to the stability and protection that can be provided by a professionally negotiated collective bargaining agreement."

Job Action in Portland Brings Quick Results

A 24-hour strike by members of Local 1432 in Portland, Oregon brought quick results when Consolidated Metco, a heavy parts manufacturer for Class 8 trucks, offered a new contract that met most of the striking members’ demands.

Picketing had been under way for barely a day when word came that a new proposal was on the table. "This is the type of action that has served the IAM well for over a hundred years,” said GVP Lee Pearson, who joined the strike line on March 8. “We cannot just accept contracts that harm the workers who come after us. I'm proud of these members, and I’m proud to be here with them," said Pearson.

Union officials arrived shortly after 2 p.m. to hand out the new offer and brief the striking workers on its contents. The picket line came down at 2:15 p.m. and the contract was voted at 7 p.m. that evening.

Leading the changes in the new accord was elimination of a two-tier pay scale at the factory, a key demand of the strikers. "We’re trying to protect the guys coming in after us — and protect ourselves by not allowing the company to create a new job classification at the lower-tiered rate by calling it something else," said 32-year employee Vern Needles.

The new proposal also boosted wages $1 an hour over three years and it increased the pension a nickel to $1.40 an hour. The current average wage at the plant is $17 an hour, but can reach $21.45 an hour, depending on seniority and job classification, according to picket captain Tim Snethen.

Deadline Near for June Web School

Monday, April 4, 2005 is the cutoff day for applications to the June 12-17, 2005 Basic Web development school at the Winpisinger Technology Center in Hollywood, Maryland. Those interested in attending the school should contact the IAM Communications Department immediately at 301-967-4520.

 

 

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