LETTER LABOR ADVISORY BOARD JULY 2015 Vol

Published By AMERICAN INCOME LIFE & NATIONAL INCOME LIFE LETTER LABOR ADVISORY BOARD JULY 2015 Vol. 47 No. 4

NEWS FROM THE Steel covering thousands of workers and vote. The campaign against the Trans-Pacif- AFL-CIO, CTW, at ArcelorMittal, the world’s largest steel ic Partnership Agreement unified organized INTERNATIONAL & maker, where the union faces tough nego- labor unlike any trade issue in the past. The tiations. A weaker U.S. economy, a stronger agreement has been secretly negotiated al- NATIONAL UNIONS dollar and a rash of imports have plagued though lobbyists for leading corporate in- steel producers in recent months with ship- terests have been allowed to see draft copies. The United Electrical, Radio ments by U.S. steel mills down nearly 10 Opposition in the Senate was led by Demo- and Machine Workers of America and percent through April. cratic Senators. Sherrod Brown (OH) and IUE-CWA negotiated tentative four-year Elizabeth Warren (MA) who warned fast- agreements June 21 with General Electric The AFL-CIO waged a fierce track would cost thousands of American Co. after three weeks of talks. The contracts lobbying campaign against fast-track ne- jobs and allow multi-national companies to provide $2,000 ratification bonus, three ac- gotiating authority for the president which evade U.S. law. Brown noted that lawmak- celerated cash payments totaling $8,000, was finally approved by the Senate on June ers have little idea of what shape the TPP four fixed cost of living adjustments (CO- 24. “It will do nothing to prevent repeat- trade agreement will take despite approving LAs) and one general wage increase. In ad- ing the mistakes of failed trade policies that fast-track consideration of the deal. “We’ve dition, there will be no increase in health have contributed to stagnating wages, in- gotten the worst of both worlds because care premiums and improvements in bene- creasing inequality and the closure of more we’re voting on TPA and we haven’t been fits. “I am extremely proud of our bargaining than 60,000 factories since 2000,” the Fed- able to see what’s in TPP,” Brown said be- team for their persistence and focus on de- eration wrote in a letter prior to the Senate fore the vote. tail in achieving this new national contract, which I’m confident will be viewed by our membership as a winning contract that will increase their job security while also giving them improvements in benefits and wages,” IUE-CWA President Jim Clark said. The United Steelworkers union is bargaining three big contracts that expire this summer with major metals producers. Talks with Allegheny Technologies, where most of the 2,450 union workers are employed at the specialty metals producer’s plants near Pittsburgh, do not appear to be going well, according to news reports. The four-year contract expires at the end of June and the company has made significant concessionary demands, including defin- ing the normal work day as 12 hours. On September 1, three-year pacts expire at U.S. Protesting the TPP. Flickr.com photo used under Creative Commons from stopfasttrack.

TERRY O'SULLIVAN, President - Laborers International Union of North America, Chairman - AIL/NILICO Labor Advisory Board VICTOR KAMBER, Vice President - American Income Life Insurance Company, Executive Director - AIL/NILICO Labor Advisory Board ROGER SMITH, President & Chief Executive Officer - American Income Life Insurance Company, President - AIL/NILICO Labor Advisory Board DENISE BOWYER, Vice President - American Income Life Insurance Company, Secretary - AIL/NILICO Labor Advisory Board Pg 2 LABOR LETTER

them to move to another factory. Workers Coast Labor Council Secretary Arthur at Shenzhen Artigas Clothing & Leather- Rorris. “We’re not prepared to wait for ware in southern China said they demand one boardroom meeting of one company negotiations for the relocation after man- in Melbourne to determine the future not agement shut down the plant. Artigas is just for our steel industry in this country managed by Lever Style Limited, which but also whether our region goes into a very has refused comment. But the Japanese re- deep recession,” he said. “You cannot lose tailer Uniqlo has threatened to terminate its thousands of jobs in this region and every- contract with the supplier if matter remains thing that goes with it and expect to have an unresolved. Hong Kong-based China La- unemployment rate without double digits.” bor Bulletin reported more than 1,000 col- Citing the U.S. as an example, he said sup- lective actions have been taken by Chinese porting locally made steel happens in other workers since January who are taking to countries around the world but the govern- group actions to fight for their rights. The ment needs to lead the way. human rights organization reported 1,379 workers’ strikes in China in 2014, up from More than 50,000 Mexican 656 the previous year. farmworkers joined a strike started in March CWA Vice President Ed Mooney. Flickr.com in the San Quintín Valley in the Northeast- photo used under Creative Commons from Dominican Republic’s labor ern part of Baja California. According to Bernard Pollack. unions recently warned Congress against news reports, they are aggressively protest- amending the Labor Code unilaterally “and ing low pay, poor working conditions and The Communications Workers above all if it reduces workers’ rights.” The human rights abuses. Led by the Alliance of America (CWA) and Internation- unions issued the warning during a meeting of National, State and Municipal Orga- al Brotherhood of Electrical Workers with legislators in a hotel in Santo Domingo. nizations for Social Justice (AONEMJS), (IBEW) did not formally respond to Ve- “Any amendment to the Labor Code must workers are seeking a wage increase from rizon’s latest contract offer, but called for be based on benefiting the worker instead $8.00 to $13.50 per day. They also demand “fairness” for the 38,000 union wirelines of harming them, like businesses want,” said employers pay into Mexico’s social security workers covered by negotiations. According Unions Federation (CNUS) president Ra- and health insurance system, and obey la- to news reports, Verizon offered raises and fael Pepe-Abreu. He said unions withdrew bor laws. The workers’ alliance called for lump sum payments, but is seeking higher from talks with the National Salary Com- an end to sexual harassment in the fields health insurance payments from workers mittee, which sets a national minimum and revocation of contracts with unions af- and greater management “flexibility.” The wage, after learning about a secret deal with filiated with the Institutional Revolutionary current three-year contract expires August the private sector. He charged the commit- Party (PRI). Millions in crops have rotted 1. Workers are covered under 27 differ- tee issued a resolution prior to the meeting in the fields as growers refuse to accept the ent contracts that follow a similar pattern. based on an agreement between employers workers’ demands. During the height of CWA represents most of the workers and and government. He said decisions taken the dispute, protesters blocked the main the union’s lead negotiator is CWA Vice without labor’s presence violate Dominican north-south highway and Transpeninsular President Ed Mooney. “We are united in Republic’s commitments to international Highway, and partner strikes have sprouted our commitment to fight for fairness – we treaties, especially the Free Trade Agree- across the state. are the foundation upon which the success ment with Central America and United of Verizon rests,” Mooney said in a release. States (DR-CAFTA). “We have helped to boost the company’s NATIONAL AND earnings and productivity even through a Australia’s South Coast Labor POLITICAL EVENTS global recession. It is now our turn to share Council has launched a campaign to save equitably in that growth.” BlueScope’s Port Kemble steelworks. The Tata Consultancy Services company stoked fears about the plant’s and Infosys, two India-based outsourcing future when officials announced “a game- companies, are under investigation by the INTERNATIONAL changing” approach to significantly cut U.S. Department of Labor for violations of LABOR NEWS costs to stock analysts. In response, the rules for H1b visas for foreign technology union movement wants state and federal workers. The investigation was spurred by More than 300 Chinese work- governments to use Australian made steel publicity over the firing of U.S. IT workers at a garment factory that supplies in- on taxpayer funded projects. Stopping steel ers who were forced to retrain their foreign ternational brands such as Uniqlo began production would lead to thousands of job replacements in order to secure severance a protest in June over what they say is a losses and plunge the Illawarra coastal re- benefits. The incident involved a contract unilateral decision by management to force gion into a deep recession, warned South they held with Southern California Edison LABOR LETTER Pg 3 which recently laid off more than 500 tech- REGIONAL & as other major carriers. In a letter to Al- nology workers. H1b visas are temporary legiant’s board of directors, union president work permits which allow U.S. firms to LOCAL LABOR Daniel C. Wells warned the airline is cut- hire foreign workers. But U.S. workers are NEWS ting corners on maintenance and opera- not allowed to be displaced by H1b im- tions. The airline has suffered a number of migrants. Disney in Florida recently made Steelworker’s Local 13-1 strik- recent incidences over maintenance issues national headlines when 250 employees in ing workers from Galveston’s Marathon involving delayed and canceled flights. the IT section were laid off and forced to Petroleum Corp’s Galveston Bay Refin- “Passengers shouldn’t have to wonder if train their replacements from India on H1b ery ended a five-month walkout June 23 their Allegiant flight will be the next one to visas employed by Cognizant. Disney has after narrowly approving a new contract. make an emergency landing,” Wells wrote. since rescinded the layoffs as a result of the Some 1,200 workers struck the 451,000 “But with Allegiant’s nickel-and-dime adverse publicity. barrel-per-day (bpd) refinery February 1 approach to its operation, employees and and they were the only work group out of safety, it puts passengers and flight crews The U.S. Commerce Depart- 15 nationwide still on the picket line. The at an unnecessary increased risk.” He said ment reported that consumer spending re- USW and U.S. refinery and chemical plant pilots “have concerns about the company’s corded its largest increase in nearly six years owners settled a new national agreement in bare minimum approach to maintenance in May. According to Commerce, consum- March on pay, benefits and safety policies. and operation of the airline” and urged the ers showed a strong demand for automo- But picketing still continued at several lo- company to work with pilots “so we can biles and other big-ticket items. Spending cations around the nation over local issues work together to strengthen our airline…” increased 0.9 percent in May, the biggest before the national contract was ratified. gain since August 2009, after an upwardly Workers at Marathon will begin resuming Working Vermont, a coalition revised 0.1 percent rise in April, Commerce their jobs on July 6. The company kept the of labor unions, opened a campaign to have said. Some of the increase was attributed to refinery operating with replacement work- Uber drivers treated as employees instead the windfall to consumers from lower gaso- ers who will be let go. Lee Medley, president of independent contractors. The group has line prices. Consumer spending accounts of the United Steelworkers Local 13-1, said targeted Burlington, which is consider- for more than two-thirds of U.S. economic he’s “proud” of the union’s negotiating coming a temporary operating agreement with activity. Spending on long-lasting goods mittee and members. “It has been a tough Uber. If treated as employees, Uber drivers such as automobiles jumped 2.2 percent last ordeal, but they all stood strong,” Medley could unionize, pay only the workers’ share month, while outlays on services like utili- said in a statement. of Social Security and Medicare taxes and ties rose 0.3 percent. But the savings rate fell qualify for unemployment insurance and to 5.1 percent from 5.4 percent in April as Allegiant Airlines has system- workers compensation. The group recently household spending stepped up. Commerce ic safety problems that must be addressed, asked Burlington Mayor Miro Weinberger said, however, that savings remain high. said Teamsters Local 1224 which repre- to require Uber to hire its drivers as em- sents the airline’s pilots. The union is cur- ployees as part of the agreement. The Cali- With income inequality a grow- rently in negotiations with the company fornia labor commissioner recently ruled ing political issue, a new report from the for a new contract and called on manage- that an Uber driver was an employee, Economic Policy Institute found that the ment to adopt the same safety standards not a contractor which Uber argues. The most senior corporate officers in the United States made more than 300 times as much as the average worker last year. According to the report, average CEO compensation for the largest firms was $16.3 million in 2014, an increase of 3.9 percent from last year and 54.3 percent since the end of the Great Re- cession in 2009. CEO compensation in 2013 was also nearly six times higher than others in the top 0.1 percent of earners, according to the study. The average industrial worker, however, has seen their wages drop by an average of 1.7 percent since 2009. “The evidence says that the extraordinary growth in pay does not correspond to increased productivity. The pie hasn’t grown, in other words, but CEOs are cutting themselves a bigger slice,” EPI Presi- dent Larry Mishel said. Allegiant flight taking off. Flickr.com photo used under Creative Commons from Bill Word. Pg 4 LABOR LETTER company intends to appeal the California The American Federation of 4,000 commuter workers and includes ev- ruling. Working Vermont lobbyist David Government Workers called on the Obama ery rail union on NJ Transit. “By announc- Mickenberg said Uber offers an opportuni- Administration to take “immediate steps” to ing our intention to invoke a Presidential ty to embrace new technology “in way that safeguard federal workers’ private informa- Emergency Board, we want to remove any is responsible, which acknowledges tradi- tion. “The estimated 18 million people who fears the riding public may have that a strike tions of Vermont and the value we place on have had their personal information stolen could occur in July,” a Coalition spokesmen protections for workers.” deserve more than evasive responses, inept said. Negotiations for new contracts opened customer service, and inadequate security on July 1 of 2011 and efforts at mediation measures,” said the union in a statement. recently failed to produce agreements. Un- IN THE PUBLIC The union said the Office of Personnel der the Railway Labor Act, a strike would SECTOR Management has refused to answer ques- be possible on July 16 unless one of the par- tions about the extent of the breach or to ties requested the President to appoint an The American Federation of respond to questions from affected employ- emergency board to review the issues. The Teachers Innovation Fund will invest ap- ees. The union also criticized the agency for coalition is seeking parity with their coun- proximately $500,000 to support four local contracting its response efforts to a compa- terparts on the Long Island and Metro- AFT affiliates’ work with local partners to ny that has little experience in credit moni- North railroads. expand career and technical education op- toring. According to AFGE, the Depart- portunities. The purpose of the grants is to ment of Defense has blocked employee ac- help closely align career pathways with the cess to the contractor’s website over security SIGNIFICANT local job market. The programs are located in concerns. AFGE said OPEM should hire LEGAL AND NLRB Peoria, Illinois; Pittsburgh; San Francisco; federal employees to assist in its response to RULINGS and Miami. “Today’s career and technical the breach rather than rely solely on a con- education is a promising pathway that en- tractor, detail the scope of the breach and Supporters of Obamacare gages kids with real-world training and aca- explain to employees exactly what informa- urged critics to cease their opposition to the demic content and leads to further education may have been compromised and pro- Affordable Care Act and to move forward tional opportunities for 21st-century jobs,” vide affected individuals with free lifetime to improve America’s health care system said AFT President Randi Weingarten at a credit monitoring. following the Supreme Court’s 6-3 ruling recent event in New York City to announce June 25 that government subsidies are legal the effort. “But the only way CTE will be After four years of fruitless ne- nationwide regardless where a person lives. a pipeline for good jobs is if the business gotiations with the state, 17 labor unions President Obama called on critics to accept community and government are real part- which comprise the New Jersey Transit the law as permanent in comments after the ners at the table with schools. That’s what’s Rail Labor Coalition invoked a Presiden- decision. “The Affordable Care Act is here happening now in New York, it’s what our tial Emergency Board to make non-binding to stay,” the President said. AFL-CIO Pres- teachers need, and it’s what this multicity recommendations to settle the contract dis- ident Richard Trumka commented, “Now, compact is designed to encourage.” pute. The Coalition represents more than it is time to move forward.” He added, “It’s also past time for Republicans, whether in Congress or the state capitals, to end their repetitive efforts to repeal or damage the Affordable Care Act.” The high court’s ruling is the second major legal test the law has faced. Although Republicans are near unanimous in their opposition to Obam- acare, they have yet to unify behind a plan to replace it.

LABOR LETTER provided through

Protecting Working Families New Jersey Transit. Flickr.com photo used under Creative Commons from Schaffner. www.ailife.com AGENDA JULY 2015

by 2100 — are enormous and uncertain. deciding who will pay for climate action and Major disruptions in jobs, trade, financial exactly how each nation will reduce its emis- markets, energy sourcing and other areas sions. Poor, developing countries have long are likely to result. insisted that rich, developed nations take the A key concern for the Boilermakers lead and bear the burden, since the United Newton B. union is how the agreement will affect jobs States, European nations, Canada and other Jones in North America. Pressure to eliminate advanced countries are most responsible for President fossil fuels from the energy mix worldwide greenhouse gas emissions dating back to International threatens future generations of members the start of the Industrial Revolution in the Brotherhood of working in the Construction Sector as well mid-1800s. Developing nations have also Boilermakers as those in the Industrial Sector, where pushed for the right to continue their in- cheap, reliable energy is essential for cement dustrial expansion even as developed nations CAN CLIMATE making and manufacturing. For that reason, scale back their emissions. the International sends observers to monitor The United States has rejected this po- ACTION SUCCEED the climate talks, communicate our issues sition as unfair to the economies of the de- WITHOUT CCS? and lobby for our positions. veloped world. Environmentalists see the climate talks In preparation for the December 2015 Negotiators from nearly 200 countries as the perfect venue to push their agenda. COP21 meeting in Paris, nations are urged will meet in Paris in December to seek a Many insist that coal, oil and gas be left to develop and submit, by March 2015, their climate change agreement aimed at keeping in the ground and that investors withdraw emission reduction targets and approaches, the global average temperature from rising their funds from fossil fuel-based energy or “common but differentiated responsibili- more than 2 degrees Celsius (3.6 degrees companies to hasten their demise. Even UN ties and respective capabilities in light of dif- Fahrenheit). Beyond that threshold, many climate chief Christiana Figueres supports ferent national circumstances.” scientists believe, the Earth will suffer cata- divesting from fossil fuel companies. This overly complex and confusing lan- strophic and irreparable climate harm. But such an approach is not realistic. guage reflects the tortured efforts by nego- The Paris summit, known as COP21 According to the U.S. Energy Information tiators to take into account the interests of (Conference of the Parties, 21st year), fol- Administration (EIA), global energy de- multiple parties to the negotiations. It essen- lows a December 2014 meeting in Lima, mand will rise 56 percent between 2010 and tially means that nations will set their own Peru (COP 20), which laid the groundwork 2040. A December 2014 report by the Inter- targets as they see fit, according to their own for a possible agreement. national Energy Agency (IEA) predicts coal circumstances and realities. Annual climate meetings have been demand will reach a record nine billion tons That leaves the door open to national held since 1994 under the auspices of the per year by 2019, with three-fifths of that targets that may be considered too lim- United Nations Framework Convention on growth coming from China. The notion that ited, thus not adequate to stay below the Climate Change (UNFCC). While govern- fossil fuels should be left in the ground must 2C maximum. ment teams engage in the negotiations, side be countered with sensible solutions that in- The COP20 conference in Lima ran meetings draw interested parties including clude carbon capture and storage (CCS). some 30 hours over the two weeks originally corporations, labor unions, religious groups, Fortunately, many people involved in scheduled to fashion an agreement outline and environmental and other special inter- the climate change debate understand the that many found inadequate. If a break- est organizations — each pressing its view- impracticality of shutting down global coal through climate agreement is to be achieved points and needs. use anytime soon. As the 2014 EIA report in Paris this December, negotiators will have However, many participants and was being released, the agency’s execu- to ramp up their efforts in dramatic fashion observers were disappointed with the tive director, Maria van der Hoeven, sum- — or risk a grand failure from which it will COP20 results. Key issues remain unre- marized the challenge this way: “Although be difficult to recover. solved. In place of binding obligations, the the contribution that coal makes to energy Meanwhile, the debate on fossil fuel’s Lima draft includes only options for fur- security and access to energy is undeniable, continuing role in the future of global en- ther consideration. I must emphasize once again that coal use ergy continues unabated. While many in Still, hope remains among agreement in its current form is simply unsustainable. the environmental community — and even supporters that any unfinished work can be For this to change, we need to radically ac- UNFCCC Executive Director Figueres — completed in Paris. celerate deployment of carbon capture and appear fixated on eliminating fossil fuels The political, economic and techno- sequestration.” from the energy mix, a substantial awaken- logical implications of slashing global car- Perhaps the most difficult area of agree- ing to the promise, and necessity, of CCS by bon emissions — ultimately reaching zero ment in cementing a climate agreement is others is a much welcomed development. Pg 2 AGENDA

CWA President Joins AIL Board

Teamsters PA Conference Teamsters Scholarship Fund AIL Public Relations Manager Brian Ryan (left) IBT Local 89 Secretary/Treasurer John Bolton meets with International Brotherhood of Teamsters (right) accepts a scholarship check from AIL PR (IBT) General President James Hoffa at the recent Lou Nell Busby. Pennsylvania Teamsters conference. Communications Workers of America President Christopher Shelton is the newest member of the AIL Labor Advisory Board, announced AIL President & CEO Roger Smith.

“Chris will make an excellent addition to the board and we welcome his participation,” said Smith.

Shelton was elected president of CWA by acclamation by delegates to Mississippi Hawaii Legislature the union’s 75th convention on June Gubernatorial Candidate 8, 2015. He replaced Larry Cohen Left to right: AIL Public Relations Dion Dizon, AIL who retired after serving for ten years. AIL’s Liz Corley presents a contribution to Public Relations Manager for Hawaii Daryl Barnett Mississippi gubernatorial candidate Vickie Slater. and AIL Vice President of PR Field Operations Shelton has been Vice President of Left to right: John Smith, Business manager, Susan Fuldauer met with Hawaii AFL-CIO COPE CWA District 1, representing 160,000 International Brotherhood of Electrical Workers Director Jason Bradshaw during the Hawaii Local 480 and Jackson Central Labor Council legislative session. members in more than 300 CWA President; Corley, Slater and Mississippi AFL-CIO locals in New Jersey, New York and President Robert Shaffer. New England, since 2005.

Shelton started his union career when he went to work for New York Telephone in 1968 as an outside technician. He was elected a CWA Local 1101 shop steward in 1968 and served Local 1101 in various positions until December 1988 when he joined the CWA national staff.

CWA represents hundreds of thousands of workers in private and public sector employment in the United States, Canada and Puerto Rico.

SMART Clay Shoot Sheet Metal, Air, Rail and Transportation Workers (SMART) in Colorado held a Clay Shoot supported by AIL. From left: General President Joseph Nigro, AIL PR Jeanette Dodd, SMART International Representatives Steve Dodd and Joseph Sellers.