Los Angeles FedEx Workers Testify Before Blue Ribbon Commission Panel

Workers Struggling to Stay in Middle Class Hope to Join Teamsters

FedEx workers in Los Angeles testified today before a Blue Ribbon Commission panel that they are on the verge of slipping from the middle class because of dwindling benefits, higher out-of-pocket medical costs and an overall decline in workplace conditions.

The Blue Ribbon Commission hearing is co-sponsored by: the International Brotherhood of Teamsters; the Los Angeles County Federation of Labor, AFL-CIO; and Clergy and Laity United for Economic Justice (CLUE). Economic experts, clergy members and workers discussed ways to help the workers remain in the middle class and remedy the anti-union situation they are battling. The commissioners on the panel are: U.S. Rep. Linda Sanchez (D-CA); Los Angeles City Councilman Bill Rosendahl; and Bishop Mary Ann Swenson of the United Methodist Church, Los Angeles area.

The workers said they hope to form a union with the Teamsters to gain a good contract that would guarantee them job security, better wages and benefits. But they said those efforts have created an anti-union backlash at many workplaces, with the company holding anti-union mandatory meetings, distributing anti-union literature, showing anti-union videos at work and engaging in many acts of intimidation.

"Pro-union employees are followed into restrooms by managers who look over stalls," said Rudy Hernandez, a 20-year FedEx employee who currently is a FedEx Freight driver. "Dispatchers tell drivers if they vote the union in, FedEx will close down this terminal."

But despite all the anti-union activities, Hernandez and four FedEx Express aviation mechanics testified that they remain committed to forming a union with the Teamsters.
Dan Forrand, a Senior Aviation Mechanic Technician at FedEx Express, said he planned to retire when he turned 62. But when FedEx changed its defined benefit pension plan to a cash balance plan on June 1, Forrand knew he would have to work longer to recoup financial losses.

"I've calculated that I'll lose about $230,000 that I would have accrued under the defined benefit plan," Forrand said. "I am worried that I am slipping out of the middle class."

Economic experts and clergy members voiced their support for these workers and discussed ways to remedy their situation.

"The bottom line: without a union, FedEx mechanics have no job security," said Jon Zerolnick, Senior Research Analyst for the Los Angeles Alliance for a New Economy (LAANE). "Currently their jobs can be outsourced and hours cut -- and lives are seriously impacted -- at the whim of management. They need a union to protect jobs."

"As members of the Los Angeles clergy community, we hear these stories of struggle every day," said Pastor Bridie C. Roberts of CLUE LA. "These workers need the help of everyone to keep themselves and their families in the middle class."

Over the last few years, FedEx workers have taken a look at Teamster strength in their industry. The Teamsters represent about 240,000 full-time and part-time workers at UPS and 12,600 at UPS Freight. The UPS and UPS Freight workers are benefiting from strong contracts that guarantee them wage increases, job security, good health coverage and a pension plan that cannot be taken away. FedEx workers have no contract.

The Los Angeles County Federation of Labor, AFL-CIO, is focused on promoting a voice for workers so they can remain in the middle class, or move themselves out of poverty, by joining a union. The federation believes that in educating and mobilizing workers to be politically active they can create and sustain healthy communities.

CLUE was formed with the purpose of organizing the religious community to support low-wage workers in their struggles for a living wage, health benefits, respect, and a voice in the corporate and political decisions which affect them. CLUE LA is an interfaith association of more than 600 religious leaders throughout Los Angeles County who come together to respond to the crisis of the working poor.

Hoffa: Senate should reject death sentence for GM

What's ailing the auto industry in the United States is the same as what's ailing the industry in China, Japan, Europe and South America.

Carmakers around the world are struggling through the worst slump in 40 years. Sales of cars by Toyota and Honda fell more during the last year than did sales of cars by Ford.

For America's Big Three automakers, the bad news turned catastrophic last month. In November, 236,000 North American-made cars were sold. That is a shocking 40 percent drop from the number of cars sold in November 2007. No industry can afford a 40 percent sales decline.

Sure, mistakes were made. But the Big Three's dire straits are a result of frozen credit markets and a global recession.

Fortunately, many in Congress recognize that it's crucial to rescue the U.S. auto industry. The House has approved a bill negotiated with the White House that would use existing money for a short-term loan and restructuring of the troubled carmakers.

There are 1.59 million people employed by the Big Three, their parts suppliers and dealerships. As many as 5 million people depend on the auto industry for work, including Teamsters who haul cars, parts and supplies. Letting the domestic auto industry collapse would dramatically worsen a recession that's already a year old.

It would be disastrous to allow even one of the Big Three to seek bankruptcy protection. That would cause the failure of hundreds of auto parts companies and dealerships. The remaining Big Two automakers, dependent on the parts and dealer networks, would go under. Securitized auto loans and their insurers would fail, whipsawing fragile credit markets.

Another consideration: General Motors couldn't get financing for a Chapter 11 bankruptcy. So do the math. Bankruptcy for one automaker means GM closes its doors. For good.

There are some free-market wing nuts who are fine with that. We've all heard their arguments: "Since the automakers brought their problems on themselves, let them fail." Or, "Don't interfere with the free market."

But they ignore a lesson of the last century: America's peace and prosperity depend on a robust manufacturing base.

We would have lost World War II if we didn't have an auto industry that could produce weapons during the war. That's why Franklin Roosevelt called Detroit the "Arsenal of Democracy."

We would not have enjoyed record prosperity during the post-World War II era without a strong manufacturing base -- and productivity gains that were shared with workers.

In recent decades, we've taken our eye off the ball. Instead of shoring up our manufacturing base, we've favored the interests of Wall Street over other sectors of the economy. Nowhere is that more evident than in the ongoing, multitrillion-dollar bailout of irresponsible financial services companies. (By the way, I don't hear anyone complaining that the unions brought down Lehman Brothers.)

Now, Wall Street's follies are hurting the auto industry.

For those who would pull the plug on our domestic automakers, I ask them to consider that our economic competitors won't let their auto industries vanish.

The European Commission is offering $6.3 billion in industry loans for developing greener cars. The Swedish government said it's prepared to help out its automakers. Japan already subsidizes its auto industry by keeping the yen artificially low.

China's automakers, which are owned or controlled by the government, get research grants and loans from state-owned banks. They're asking the government for emergency help in the form of tax relief, lower gas prices and grants.

I hope Congress will take to heart Franklin Roosevelt's words: "The strength of this nation shall not be diluted by the failure of the government to protect the economic well-being of its citizens."

Zollars: Labor Pact Levels Field

YRC Worldwide Chairman, President and CEO William D. Zollars said the money saved by the wage concessions sought from the Teamsters union will level the playing field between his company and its nonunion competition.

"This pretty much wipes out the difference between union and non-union in our industry, in terms of our cost-base," Zollars said in an interview this morning with CNBC.

YRC is seeking a 10 percent wage cut from its Yellow Transportation, Roadway, Holland and New Penn subsidiaries and a suspension of cost of living adjustments. In exchange, Teamsters employees would receive a 15 percent ownership stake through YRC stock. YRC estimates the cost savings from the modifications to the National Master Freight Agreement at $220 million to $250 million annually. A vote on ratification of the agreement by union members is scheduled for later this month.

Zollars said freight levels declined in "double digits" compared with a year ago.

"It's a pretty ugly situation out there. We're just putting ourselves in a position to be able to make it through no matter how bad it gets." (Click here for video)

USF Glen Moore Hires Drivers

USF Glen Moore, the truckload component of YRC Worldwide, is hiring drivers while the rest of the company makes major cutbacks and the Teamsters make concessions in order to preserve jobs in the company's less-than-truckload units.

USF Glen Moore said it is expanding in its national division as well as two of its regional divisions and the team-driver division. The Southeast and Northeast regions are both looking for truckload drivers.

In an ad on the trucking Web site Careersingear.com, USF Glen Moore offered "great miles, great culture and industry competitive mileage rates" along with a benefits package for solo and team company drivers with a year's experience and a hazardous materials endorsement.

ABF Eyes Wage Cuts

ABF Freight Systems is warning its workers it may seek the same kind of concessions that competitor YRC Worldwide recently negotiated with its unionized employees.

In an internal memo to employees, ABF President and Chief Operating Officer Wesley B. Kemp said the company is already losing business to non-union carriers, and the YRC wage cuts add that much more pressure to compete in the LTL market.

"If we're going to do anything about this, now may be the best time to act, while we're financially healthy, rather than waiting until we face a crisis," Kemp said in the memo. "We'll be following the YRCW results closely in the coming days and will let you know what we feel is best for our company."

In confirming the memo, David Humphrey, ABF's director of investor relations, noted that ABF employees "do a great job" for the company. "Nevertheless, it is true that the total cost of our wages and fringe (benefits) are higher than many of our competitors. That makes it difficult for us to grow, especially in the current economy. We always welcome the opportunity to talk to the Teamsters about additional ways to improve our competitive position and to preserve Teamster jobs."

Scorsese and De Niro option film rights for new movie

Deathbed confession to Hodder

A deathbed confession by the murderer of Teamster union boss Jimmy Hoffa, on which director Martin Scorsese and actor Robert De Niro are basing a new film, has been acquired by Hodder & Stoughton.

Jack Fogg, editor at Hodder, said the deal for the true crime thriller I Heard You Paint Houses was for "a good five-figure sum". Hodder has Commonwealth rights, excluding Canada. A royal trade paperback edition is due out in March 2010, while the mass paperback will be released to coincide with the film.

Fogg said: "The book came around now because Scorsese and De Niro have just optioned the film rights, and they are going to do a big Goodfella’s-style Mafia movie in the next 2-3 years. We are publishing [the first edition] on the 25th anniversary of Hoffa’s disappearance, and then we’ll tie in the [mass] paperback with the movie."

The book, which was published in the US by Steer Forth Press in 2004, is written by former investigative lawyer Charles Brandt who "elicited the confession" from Frank Sheerhan, who claimed he had been ordered by the Mafia to kill Hoffa in 1975.

"At the time, Hoffa just disappeared, and years later Sheerhan said they cremated him so no one would ever find out," said Fogg. "Hoffa had been mouthing off about his Mob ties, and they obviously didn’t want him to, so they called in this guy, who was a really good friend of his."

Fogg said although only "true crime buffs" might be familiar with the story in the UK "in the States it is like ‘who killed Diana’", adding the film’s release would give the book "a boost" for this market.

Headline is planning to pitch the title as "upmarket true crime". Fogg explained: "As it was written by a lawyer, he threshes out the politics behind the slayings carried out by the Mob at the peak of their power. There are also implications Frank Sheerhan might have supplied the weapons for the Kennedy shooting."