IAM, PBGC Oppose UAL Pension Scheme

The Machinists Union and the Pension Benefit Guaranty Corporation (PBGC) filed separate objections in a Chicago, Illinois bankruptcy court opposing United Airlines' motion to amend its Debtor in Possession (DIP) financing.

"The financing agreement should be denied because it is predicated on United halting its funding of employee pension plans, which the Pension Benefit Guaranty Corporation has said is inconsistent with federal law," said Robert Roach, Jr., IAM General Vice President of Transportation. "United should include the IAM and its members in a search for other financing options. Thus far, we have been shut out of that process."

United Airlines entered into a July 23, 2004 financing agreement that effectively prohibits the carrier from making legally required payments to fund employee pension plans.

“United’s decision to stop funding its pension plans increases the risk of loss not only to the company’s workers and retirees but to participants in other plans insured by the PBGC,” said Executive Director Bradley Belt. “The bankruptcy court should reject this attempt to sidestep the statutory funding rules. Agreements between private parties must not take precedence over federal pension law.”

A hearing is scheduled for August 20, 2004.

More Employers Snubbing Vets

Many National Guard and Reserve troops returning from Afghanistan and Iraq are discovering their jobs are gone, benefits eliminated, and promotions forgotten despite the passage of the Uniformed Services Employment and Reemployment Rights Act.

An increasing number of employers are ignoring the 1994 law which returns National Guard and Reserve troops to their old job—or equivalent position—upon return from service. The law also requires employers to award raises and benefits as if the serviceman or servicewoman had never left employment.

The Labor Department said that close to 4,000 formal complaints have been submitted since September 2001. In previous years, the Department had fielded about 900 complaints per year. The Department upheld or settled one-third of last year’s complaints, another third were deemed to have no merit, and the rest are inactive or closed because the Department lost contact with the complainant, or they returned to active duty.

US Airways Seeks Pension Relief

US Airways announced it would seek IRS permission to extend its 2004 pension payments for IAM Mechanic & Related employees and Flight Attendants for up to five years.

“US Airways’ request does not affect the benefits received by current retirees or the accrual of benefits for active employees,” said General Vice President Robert Roach, Jr. “IAM pension attorneys are reviewing US Airways’ request and will monitor the situation to ensure compliance with our collective bargaining agreement and federal pension regulations.”

IAM-represented Fleet Service employees participate in the IAM National Pension Plan and are not affected by the request for waivers from the IRS.

The situation at US Airways differs from the one faced by United Airlines employees. United elected to stop making any payments into their pension plans. US Airways wants to spread their payments out over a period of time.

Kerry Pushes for Drug Re-importation

Democratic presidential candidate John Kerry outlined his plan to lower prescription drug costs this week after receiving the endorsement of the Alliance for Retired Americans.

Kerry’s plan would allow the re-importation of safe, FDA-approved prescription drugs from Canada as well as require the Secretary of Health and Human Services to negotiate for more affordable prices under Medicare. Prescription drug costs have skyrocketed under Bush’s watch, jumping 11.5 percent in 2003 alone.

“John Kerry stands with seniors and will be a ‘people over profits’ president. He has earned our respect and support and we will pull out all the stops to elect him the next President of the United States,” said Alliance President George Kourpias.

District 110 Wins Under FLRA

After a ten-month battle with the Navy, District 110 won unit certification under Federal Labor Relations Authority for 113 employees who work for the U.S. Navy Fleet Industrial Service Center, Cherry Point Detachment.

The Navy had claimed that the North Carolina workers should fall under another bargaining unit housed in Florida. IAM Local Lodge 2297 President Teddy McNeal and District 110 Directing Business Rep. Joe Greaser successfully argued the case, winning representation for the group.

The new bargaining unit will be placed under Local 2297 at the Naval Air Depot Cherry Point. The federal employees of the Naval Hospital include RN's, LPN's, Industrial Hygienists and Clerks. They won respect on the job with a near 2- to-1 vote in favor of IAM representation. “The workers here are taking care of Americas heroes,” said DBR Joe Greaser. “These new members selflessly serve the Marines, their families and the surrounding community with true pride and professionalism.”

Minnesota Hawgs For Dogs Raises A Million

The Minnesota Chapter of Hawgs for Dogs has now exceeded one million dollars in pledges raised for Guide Dogs of America.

The 15th Annual Hawgs for Dogs all-Harley ride was held on July 10 and 11, 2004, at the Telemark Resort, in Cable, Wisconsin. More than 89 entries in the all-Harley ride made the 400 mile loop from Blaine, Minnesota to Telemark and back, raising over $81,000.

After a day of perfect riding weather the event concluded with a prime rib dinner and auction that raised $11,000 for the cause. Prizes were awarded to the participants in a drawing that featured a trip for two to Las Vegas.

Steve Cohan, President of the Minnesota Chapter declared this year’s event “a roaring success,” thanks to the people who attended, donated gifts, money, or their time.

“Because of you, we are able to keep giving people the gift of sight,” said Cohan.

Massachusetts List Corporate Freeloaders

The Commonwealth of Massachusetts has become the first state to publicly acknowledge those companies who do not pay for employee health insurance, or pay employees enough to be able to afford to purchase their own health coverage. These employers depend on the state to bear the cost of their employees health benefits.

Those businesses with more than 50 employees who do not offer employee health benefits, will soon be part of public list of corporate freeloaders.

The law which established the list was enacted over the veto of Republican Governor Mitt Romney. It’s estimated that 41 percent of employed and uninsured workers in Massachusetts are employed at large, profitable companies.