IAM Objects to UAL Request

The IAM filed formal objections to a motion by United Airlines seeking to extend the period in which only current management could propose a reorganization plan for the bankrupt airline.

According to the IAM objection, mismanagement is the largest impediment to a successful reorganization at United. “If allowed to extend the exclusive periods for a sixth time, the Debtors (current UAL management) will be able to hold their employees, aircraft and engine lessors, creditors, lenders and other stakeholders hostage to management’s incompetence,” the IAM objection states.

The IAM called on the court to deny United’s motion, a move that would permit other parties to submit reorganization plans for the carrier’s emergence from bankruptcy. A ruling on United’s motion is expected following a hearing scheduled for April 22, 2005.

Click here to view the complete text of the IAM objections.

 

Bankruptcy Bill Hurts Middle Class Families

As last week’s April 15 th tax deadline neared, millions of America’s middle class families focused on paying their taxes and playing by the rules.

Congress, however, was busy taking of care of the banking and credit card industries. The new “Bankruptcy Abuse Prevention and Consumer Protection Act,” will make it harder for middle class families to make a fresh start if they are hit by a layoff or catastrophic medical expense.

The new law ensures that credit card companies, banks and auto finance companies are repaid even after bankruptcy.

Bankruptcy for middle class families is the harsh reality of America’s jobs crisis. Job loss, medical problems and family breakup are the three top reasons American families turn to bankruptcy.

In the Senate, Republican backers defeated proposals by Democrats for exemptions in cases of medical bankruptcy, protection for the homes of the elderly and protection for active duty soldiers and veterans.

Republicans did, however, approve one of their own provisions, called an "asset protection trust." It allows the very wealthy to shield assets and stay in multi-million dollar homes in states such as Texas and Florida.

Caterpillar Threatens American Jobs

IAM Local Lodge 851 members, who are currently in negotiations with Caterpillar, denounced corporate greed at the Caterpillar stockholders’ meeting held in Chicago, IL last week. They were joined by other IAM members from the Chicago area at an informational picket outside the meeting.

Chants of “corporate greed has got to go” echoed through the Chicago financial district while IAM leaders inside were asking hard questions to Caterpillar Chairman and CEO James W. Owens.

“Why are you taking our jobs, American jobs, to China?” asked Shop Committee member, Marion Modesitt. Owens replied that Caterpillar was not taking American jobs to China; they are creating new jobs in China.

Challenging Owens further Grand Lodge Representative Joe Cooper asked, “Since you have asked us to take cuts...do you have a plan to reduce your wages and benefits, from the top down on the management side?”

“We are not going to reduce management wages and benefits,” said Owens.

Also representing the members of Local 851 at the stockholders meeting were IAM District 55 Business Representative Dan O’Donnell, Local 851 President Tim O'Brien and Shop Committee member Bill Rathbun.

Local 851 has been in negotiations with Caterpillar since March and negotiations are scheduled through April 29. 

April 19 is Equal Pay Day

On June 10, 1963 John F. Kennedy signed the Equal Pay Act eliminating the standard of paying women less than men for the same job. But 40 years later, women are still paid less than men, even when they have similar education, skills and experience.

April 19 is Equal Pay Day. The date symbolizes how far into the year women must work, on average, to earn what men earned the previous year. Today, women earn 76 cents for every $1.00 a man makes. Last year the figure was 77 cents for every $1.00, the last time it declined was 1999.

Working families, on average, will lose more than $4,000 annually because of unequal pay. According to the 2004 Ask A Working Woman survey, 62 percent of all working women say they provide half or more of their families’ incomes. An overwhelming 90 percent say stronger equal pay laws are important.

If equal pay were implemented nationwide, women’s wages would raise by 13 percent and men’s wages by one percent. To see how your state ranks, click here.

Wall Street CEOs Push Bush Social Security Scam

CEO’s of Wall Street financial companies supporting President’s Bush’s push to privatize Social Security only spend an average of four days a year paying into the Social Security system - leaving them very little risk in a reformed system, according to a report from United for a Fair Economy and the Institute for America’s Future.

In 2004, workers paid an effective tax rate of 12.4 percent on Social Security throughout the year, but only on the first $87,900 of earnings. The report studied 26 financial industry CEOs and found they had pay packages averaging $17.7 million and were done paying Social Security taxes an average of four days into the year. Seven of the CEOs who were studied only paid Social Security taxes one day of the year.

However, 94 percent of workers earn less than $87,900 and must pay Social Security taxes for the entire year.

The report concludes private accounts will do nothing to protect the Social Security system and will only worsen the federal budget deficit. It also suggests that removing the earnings cap would result in more money for the system and shore up the Social Security funding gap.

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