Transport Workers and Machinist Union to Jointly Represent Ground Workers at the “New” American Airlines

TWU and IAM Logo
TWU and IAM Logo

TWU and IAM Logo

The International Association of Machinists and Aerospace Workers (IAM) and the Transport Workers Union of America (TWU) today announced a partnership to jointly represent nearly 30,000 ground workers at the “new” American Airlines following the merger of American Airlines and US Airways.

This week the two international unions have signed joint agreements to cover the Mechanic & Related, Fleet Service, and Stores employee work groups at the soon to be merged airline. The new labor partnership, to be known as the TWU/IAM Employee Association, will ask the federal National Mediation Board (NMB) to hold elections among the combined employees for each classification after the close of the American-US Airways merger.  The election will formalize the joint-council agreement reached this week.

“I am proud that our two great unions put the members first in a true demonstration of solidarity,” said IAM International President Tom Buffenbarger. “These agreements protect our members’ representation, pensions and seniority. Working jointly with the TWU, we will ensure both unions’ members are rewarded in this merger.”

“This agreement allows us to use our combined strength and resources on behalf of all our members as we move forward at the new American Airlines,” said TWU International President James C. Little.  “Both unions have decades of experience representing workers at US Airways and American Airlines and both unions are members of the AFL-CIO.”

Following certification, negotiating committees comprised of an equal number of representatives from each union will begin working out the details of collective bargaining agreements to cover the combined carriers’ employees.

The accords reached this week, designate which union will enforce a post-merger agreement in specific cities, as well as providing a mechanism to designate contract enforcement responsibilities if the carrier expands to new markets.

The IAM currently represents Mechanic and Related, Fleet Service, and Stores employees at US Airways; TWU represents these classifications at American. TWU also currently represents aircraft dispatchers, flight crew training instructors and flight simulator engineers at both airlines. Additionally, IAM represents Maintenance Instructors at US Airways.

The full agreements and a Question and Answer document are available at both the IAM website www.usaamerger.com and at the Transport Workers Union’s website: www.twu.org.

5-13-13 AFT-NH Legislative Update From Pres. Laura Hainey

aft sqaure

UPCOMING FULL HOUSE VOTES May 22nd

The House Labor Committee recommended defeating SB 100: AN ACT authorizing electronic payment of payroll. This bill will affect all public employees in New Hampshire. This bill will do the following:

  • Delete the requirement that an employer who pays wages by electronic fund transfer offer employees the option of being paid by check.
  • Permits an employer to pay wages with a payroll card after offering employees the option of being paid by direct deposit.

AFT-NH is opposed to this bill and supports the Committee recommendation to defeat this bill.  We understand that many employees do receive their paycheck by direct deposit but there are many who prefer the paper check and they should still have this option. It might be different if they were proposing the cost savings be shared with the employee.

UPCOMING FULL SENATE VOTES—DATE NOT YET SET

The Senate Executive Departments and Administration Committee recommended passage of HB 124 as amended: relative to the determination of gainful occupation for a group II member receiving an accidental disability retirement allowance from the retirement system.

This bill:
I. Reinserts a provision which removes the application of the gainful occupation reductions to retirement allowances of group II accidental disability beneficiaries who have years of service plus years of accidental disability retirement which total at least 20 and who have attained the age of 45.
II. Allows the director of homeland security and emergency management in the department of safety the option to rejoin the retirement system as a member and to continue group II retirement status based on prior service and group II membership, and allows the assistant director of homeland security and emergency management to continue group II retirement status based on prior service and group II membership.
III. Provides for the appointment of the director of the division of homeland security and emergency management for terms of 3 years.
AFT-NH supports the recommendation of passage.

AFT-NH BILL TRACKER UPDATE

Click here to review AFT-NH bill tracker and see where each bill is and where AFT-NH stands on each bill.

STATE BUDGET

The Senate held a public hearings on HB 1: making appropriations for the expenses of certain departments of the State for fiscal years ending June 30, 2014 and June 30, 2015, and on HB 2: relative to state fees, funds, revenues, and expenditures Thursday. Many who testified ask that they fund programs that are very much needed like the CHINs program, community health center, personal care attendant, community based program for adduction, and preventative care programs.

In the end Chairman Morse stated “in so many words” that the Senate budget will look a lot different and be a lot leaner than the House’s proposed budget. To review all the documents that have been discussed click here.

If you have any questions or concerns please email me at lhainey@aft-nh.org.

In Solidarity,
Laura Hainey
AFT-NH President

UPCOMING HEARINGS FOR NEXT WEEK
Note the ones in
red are priority bills for AFT-NH


MONDAY, MAY 13

STATEWIDE EDUCATION IMPROVEMENT AND ASSESSMENT PROGRAM LEGISLATIVE OVERSIGHT COMMITTEE (RSA 193-C:7), Room 103, LOB
10:00 a.m. Regular meeting.

TUESDAY, MAY 14

HEALTH, EDUCATION AND HUMAN SERVICES, Room 103, LOB
9:00 a.m. EXECUTIVE SESSION ON PENDING LEGISLATION
10:00 a.m. Presentation: New Hampshire Public Charter School Association
Presentation: Department of Education

EDUCATION, Room 207, LOB
10:30 a.m. Subcommittee work session on retained HB 435-FN, relative to funding for chartered public school pupils, HB 243, relative to the board of trustees of a chartered public school, HB 424-FN, relative to review of chartered public school applications by the state Board of Education.

WEDNESDAY, MAY 15

EDUCATION, Room 207, LOB
10:00 a.m. Subcommittee work session on SB 97, relative to high school equivalency and relative to illiteracy.
10:30 a.m. Subcommittee work session on SB 82, establishing a commission to identify strategies needed for developing and implementing a competency-based public education system.
11:00 a.m. Subcommittee work session on. SB 27-FN, relative to monitoring by the Department of Education of programs for children with disabilities.

FRIDAY, MAY 17

FINANCE, Room 103, SH
SENATE FINANCE BRIEFINGS
10:00 a.m. Department of Education

TUESDAY, MAY 21

EDUCATION, Room 207, LOB
10:00 a.m. Executive session on SB 27-FN, relative to monitoring by the Department of Education of programs for children with disabilities, SB 48, relative to school performance and accountability.

HEALTH, HUMAN SERVICES AND ELDERLY AFFAIRS, Room 205, LOB
10:00 a.m. Subcommittee work session on retained HB 494, relative to the administration of glucagon injections for pupils.

MONDAY, JUNE 3

TASK FORCE ON WORK AND FAMILY (RSA 276-B:1), Room 207, LOB
1:15 p.m. Regular meeting.

AFL-CIO President Trumka Comments On The April Jobs Report

From WIKIPedia

The economy added 165,000 jobs in April, bringing the unemployment rate down slightly, to 7.5 percent. This is welcome news, together with upward revisions to prior months’ jobs figures. But overall, the nation’s economic recovery remains lackluster – almost four full years after the “official” end of the recession. By any measure, the shortage of jobs is the real deficit crisis for this economy.

Beneath the headlines, there are several troubling indicators in today’s report.  Hours worked per worker actually fell; involuntary part-time work increased; and the unemployment rate for teenagers is stalled at 24.1 percent. Youth unemployment rates would be even higher, were it not for the dramatic drop in the labor force participation numbers for young people, meaning that many are not counted as unemployed.

Our economy is struggling to achieve the economic velocity necessary for full recovery. The blame for this falls largely on Republicans in Congress. For years, they have pushed austerity policies that have turned stimulus tailwinds into austerity headwinds. It is this misguided policy direction that distinguishes this weak and slow recovery from past economic cycles.

Austerity policies are failing around the world, and have now also been discredited among policy analysts. The main research cited to support these policies — by Professors Reinhart and Rogoff  — contained significant errors in calculation and design, and no longer supports the strong policy recommendations initially claimed.

It is time for leaders in Washington to take immediate action to reverse these disastrous policies. That starts, first and foremost, with repealing the harmful and unnecessary “sequester.” Misguided austerity has hurt our economy, kept unemployment high, and undermined wages, and we urgently need to change course. But the price for correcting this mistake should not be cutting Social Security, Medicare or Medicaid benefits, or other harmful cuts that would further damage the economy. Working people were not responsible for this mistaken policy, and they should not have to pay the price. We need more economic security, not less. We need to invest in good jobs and our future – not slash essential social programs and investments.

Once Again Faith Leaders Come Out To Support Workers Rights To Organize

Right To Work 2

Right To Work 2

This month in Missouri the legislature is pushing two bills that we recently defeated here in New Hampshire, Right to Work (for less) and Paycheck Protection/Deception (barring employees from having union dues deducted from their paycheck).

Durning the draconian rule of former Speaker O’Brien both of these anti-worker bills were pushed through the house.  Workers throughout New Hampshire came out in force to oppose these bill at public hearings.  One of the reasons that New Hampshire was able to fight these bills back was labor’s relationship with local faith organizations.  Groups like the American Friends Service Committee, a Quaker organization lead by Arnie Alpert, and Rev Gail Kinney spoke at every Right to Work for less hearing in Concord.

For years the Catholic church has been working to expand the rights of workers in an effort to combat poverty.  I was very please today to share an editorial from Monsignor Jack Schuler of Missouri.  Monsignor Schuler explains the strong relationship between workers and the Catholic church.

(Published by the St Louis Post Dispatch)

Today, our church celebrates the Feast of St. Joseph the Worker. When Pope Pius XII instituted this tradition 58 years ago, he honored the long-standing link between Joseph and the cause of working people. This year, the call to honor and remember working people couldn’t be more timely — or more necessary.

While working people in our communities continue to struggle, too many politicians in Jefferson City seem not to notice. Many have been relentless in their attacks on basic protections for working people, protections long supported by the Catholic Church and other faith traditions. Meanwhile hundreds of thousands in our state suffer from inadequate health care and too few jobs that pay a living wage.

So-called right-to-work and paycheck-protection bills seek to limit the right of working people to organize and silence their voices. If enacted, these laws would make it more difficult for hardworking first nurses, first responders, teachers and other workers to advocate for safer working conditions and provide critical services to our communities.

These bills, along with attempts to eliminate prevailing wage protections, seek to lower wages in our communities. They would make it even more difficult for families struggling to get by — and would unfairly reward corporate greed. Simply put, on this Feast of St. Joseph in 2013, working people in Missouri face an onslaught of dangerous and unfair legislation.

Catholic teaching strongly supports the right of workers to form labor unions in order to bargain collectively for just wages and benefits. In fact, it encourages workers to form unions based on the right of free association. So-called paycheck-protection and right-to-work bills seek to limit the ability of working people to organize and collectively bargain. The United States Conference of Catholic Bishops is clear: “We vehemently oppose violations of the freedom to associate, for they are an intolerable attack on social solidarity.”

Corporations give unlimited money and resources in order to purchase influence at the statehouse. Corporate lobbyists have exempted themselves from playing by the same rules they are trying to make everybody else play by — in fact, they are creating their own rules.

In his Easter address, Pope Francis called for peace in a world “divided by greed looking for easy gain, wounded by the selfishness which threatens human life and the family.” To make real change and heal these wounds, we need to work together to strengthen protections for working people and support collective bargaining rights and association. Although far from perfect, labor unions work for job security and fight against discrimination for all workers, not just those in unions. Without the ability to organize and collectively bargain, attacks will remain unanswered.

When addressing the G20 Summit in 2009, Pope Benedict XVI stated “in the light of the present global economic crisis, this analysis reveals all of its relevance: We see, in fact, that it is precisely from this root of greed that the entire crisis was born.” This is as true locally as it is globally — when greed is unchecked, when corporations are unaccountable, working people suffer the consequences and injustice is allowed to flourish.

It’s time for politicians to stop giving more and more to CEOs and corporate-funded special interests and start working to create jobs and help working people make it through these tough times.

As we remember St. Joseph the Worker, let’s focus on restoring dignity to hard work and recommit ourselves to working for justice. We are all connected by our work and our communities — and we all should call upon our elected leaders to support and strengthen those bonds, not undermine them.

Just days from now, the Missouri legislature will end the 2013 session. Our elected officials have critical choices to make and not much time to make the right decision. As a person of faith, I call on politicians in Jefferson City to break the chains of “business as usual” by understanding the moral obligation to work for justice — including economic justice for our communities.

Let’s honor St. Joseph on his feast day and every day by keeping our focus on justice for all those who work.

Monsignor Jack Schuler is pastor of St. Ferdinand parish in Florissant and member of the Workers Rights Board of Missouri Jobs with Justice, a coalition of almost 100 different organizations statewide. Through Missouri JwJ, faith, community, labor and student groups work to promote economic justice.

AFGE president blasts Defense secretary for rejecting call to end furloughs

AFGE Logo Small

Requiring all services, agencies to furlough workers will undermine readiness, increase costs 

WASHINGTON – American Federation of Government Employees National President J. David Cox Sr. is expressing his disappointment at Defense Secretary Chuck Hagel for rejecting a bipartisan call from lawmakers to end the arbitrary furlough of civilian employees.

In an April 30 letter to Secretary Hagel, President Cox said he was “surprised and disappointed” that Hagel continues to insist that nearly all DoD civilian employees be furloughed across the board, even though some components are able to absorb the budget cuts required under sequestration without furloughing employees.

“Such an arbitrary approach neither promotes national security nor fairness,” Cox wrote.

On April 24, 126 House members from both parties sent a letter to Hagel, urging him to review the Pentagon’s plans to furlough nearly every civilian employee for 14 days, systematically fire temporary and term employees, and freeze new employee hiring.

In the letter, the lawmakers highlighted the injustice of applying civilian furloughs equally across all of the services and Defense agencies, since some components say they can avoid furloughs by making offsetting cuts in other areas or generate their own revenue.

But Hagel’s written response indicated that there is no plan to alter the Pentagon’s one-size-fits-all approach. “In reallocating resources throughout the Department to the highest national security priorities, we will strive for consistency and fairness across the Department,” Hagel wrote on April 26.

In his letter, Cox noted that furloughs will increase costs, reduce productivity, and undermine readiness.

“Components and agencies should clearly not be forced to take the same number of furlough days. If components or agencies have come up with offsetting sequestration cuts or generate their own revenues, they should not be required to impose furloughs. That’s not a radical proposition. Rather, that’s competent leadership,” Cox wrote.

A copy of the letter is available at http://bit.ly/14QbLxU.

AFL-CIO President Richard Trumka Reflects On Workers Memorial Day

20130428-105947.jpg

On Workers Memorial Day, we come together to recognize the inherent dignity and value of every person and to remember all those who have perished on the job. As a third-generation coal miner, I’ve known firsthand the uncertainty of whether my loved ones would return home at the end of the day safe and healthy, and my heart goes out to all the communities who have endured terrible losses.

Each day in this country, 150 workers die from job injuries and occupational diseases. Last year in the United States more than 3.8 million workers were reported injured on the job, but this number understates the problem. The true toll of job injuries is likely two to three times greater. Around the globe, the toll is vast, with 2.3 million workers dying and 317 million workers injured on the job each year.

This year our thoughts are particularly with the families of West, Texas, where two weeks ago a horrific explosion at a fertilizer plant killed 15 people, injured hundreds more and caused widespread destruction. While the investigation is still under way, from all reports regulatory authorities had not inspected this dangerous facility in years.

We are outraged by the deaths of our sisters and brothers in Bangladesh, where over three hundred workers have perished, and hundreds have been injured, in the collapse of a building that housed garment factories.  Despite warnings by authorities that there were cracks in the building that made it unsafe, factory owners told the workers there was no danger and ordered them to work.  No worker should have to sacrifice life, limbs or health to earn an honest day’s pay – not here in the United States, not in Bangladesh or anywhere else. Yet, corporations continue the push for profits, seeking to avoid regulation and oversight.  They claim that stronger worker protections and enforcement kill profit, when the reality is that failure to act kills workers.

This is especially true for the millions of immigrant workers who live in the shadows and face even greater risks of death and injury on the job. Until all workers, regardless of where they were born or what country they live in, have the ability to come together on the job and speak out against dangerous conditions, we will continue to mourn needless deaths and preventable tragedies.

This Workers Memorial Day we must speak out against all those who value profit over life and wealth for the few over prosperity for all. Corporations that exploit workers and put them in danger must be held accountable.  We call on the Obama Administration to act without further delay to implement important regulations on silica, coal dust and other hazards.  And we must strengthen our job safety laws to give all workers the protection they need and deserve.

Labor Fights For Immigration Reform

Image from SEIU Blog
Image from SEIU Blog

Image from SEIU Blog

As the great-grandson of Irish and Polish immigrants I do not understand people’s reluctancy to have a real discussion about reforming the immigration policy in the United States. My great-grandparents came to Boston in 1910 and settled in ‘Southie’ (that is a section of South Boston for non-locals). Their story is not very different from millions that of Americans who came to the United States from around the world to chase their own vision of the American Dream.

What is the American Dream? It is the vision that if you work hard, you can prosper in America. I believe that the American Dream is becoming harder and harder to obtain for all Americans. It is becoming nearly impossible for those who immigrate to this country. Even though it may be difficult to attain, millions are still flocking to the United States to chase this dream.

In a brief statement the Communication Workers of America (CWA) stated, “Immigration reform must be fair and should reflect our shared values of opportunity, voice and justice for all, and must ensure that workers in every industry are protected from employer exploitation.”

It is said that there is nearly 11 million immigrants who are waiting to become true American citizens. These immigrants must endure so much in their attempt to become citizens. They live in constant fear of deportation and raids from the Immigration Customs Enforcement (ICE) agency. This constant threat is also being used against them in their workplace.

Companies have many legal ways to hire immigrant workers. Companies gain work visas to hire immigrants worker and the company holds the keys to their freedom. This situation is very similar to the indentured servants of the past. They are forced to work long hours and at below minimum wage. They work in sub-standard conditions because if they oppose the company revokes their visa and then call ICE to report them.

Now the labor unions are taking a stand with these immigrants to help them gain a real path to citizenship. Why would a union get involved in immigration issues? Labor unions have always stood up for all workers, not just their members. The fact that companies are using these immigrants as slave labor should be offensive to everyone and labor unions will not let it go unnoticed it any longer.

Last year the New England Regional Council of Carpenters (NERCC) helped a group of immigrants who were wrongfully abused by their employer. The NERCC opposed the construction company that was using non-union (immigrant) workers to construct new “resort style student housing” near the University of New Hampshire. However when one of the workers came to a member of the NERCC to ask for help, they jumped into action.

The immigrant worker explained that the company was withholding their pay and that his employer owed him thousands of dollars. When he and his fellow workers questioned the employer he was immediately fired. When he was fired, he was also forced out of the apartment the company was providing the immigrant workers. The company not only kept the pay owed to the worker, they kept his tools that were on the construction site and in the apartment. Then the company called ICE and reported him for being here illegally.

The NERCC stepped up to help these workers. After these workers were arrested, the NERCC got them out of jail and helped to fight back. The NERCC used the Department of Labor to force the company to pay all the employees what they were owed. They also were forced to return all the tools and belongs of these workers. Since these events last year, some of these workers have even become U.S. citizens.

(View the NERCC Press Conference on wage theft of Durham workers.)

Some may say that immigration is a tough issue to talk about because there is so much misinformation out there. We must work to help these immigrants gain legal citizenship and in turn help to ensure that all workers are treated fairly. Ensuring that these workers are covered by the same OSHA regulations that protect us now. Ensuring that all workers are paid a fair and legal wage. Ensuring that workers are valued as workers, and not treated as slave labor.

Together with our community allies to fight for these people who are fighting harder than ever to become American citizens. Together we can make the American Dream a reality for everyone who works hard and reaches for the stars.

The AFL-CIO Introduces New Website Highlighting CEO’s Outlandish Pay Inequalities

CEO Pay 354 times the average worker (AFLCIO)

U.S. CEOs Paid 354 Times the Average Rank-and-File Worker—Largest Pay Gap in the World

New CEO pay numbers for S&P 500 released in 2013 Executive PayWatch

Searchable CEO-to-worker pay online database exposes growing wealth inequality and need for a fair tax system.
www.paywatch.org

CEO Pay 354 times the average worker (AFLCIO)
Coinciding with events by working families across the country on Tax Day, AFL-CIO President Richard Trumka unveiled the 2013 Executive PayWatch, revealing that U.S. CEOs of the largest companies made 354 times the average rank-and-file worker—by far the widest pay gap in the world. Last year, CEOs received on average $12.3 million while the average rank-and-file worker took home around $34,645. This new data confirms CEO-to-worker pay disparities have increased dramatically over the past several decades. Thirty years ago, CEOs were paid 42 times that of rank-and-file workers in the U.S.

The newly designed Executive PayWatch is the most comprehensive searchable online database that tracks excessive CEO pay at S&P 500 companies and offers visitors the unique ability to compare their own pay to the pay of top executives.

In addition to the new data on CEO pay, President Trumka outlined how PayWatch now exposes some of the ways that CEO-backed groups such as the Business Roundtable and Fix the Debt are drumming up a deficit scare to conceal their efforts to get more tax cuts for corporations, while hacking at Social Security, Medicare and Medicaid benefits for working people.

“American chief executives continued to do very well for themselves last year, while workers struggle to make ends meet,” said Trumka. “We are calling out the hypocrisy of rich CEOs who have the gall to ask for corporate tax cuts to be paid for by squeezing the retirement security of working America. The American public deserves to know the truth about their self-serving agenda.”

Closing the corporate tax loophole that allows U.S. multinational companies to avoid taxation on overseas profits would raise $42 billion in new revenue in 2013 alone. But CEO groups like the Campaign to Fix the Debt want to overhaul the tax system so that corporate profits kept overseas are permanently exempt from U.S. taxes.

Trumka also pointed to new features on PayWatch, including the AFL-CIO’s Mutual Fund Votes Survey, which examines votes cast by the largest mutual fund families to constrain CEO pay. This new letter grading system will help investors and the public compare how specific mutual fund families voted on executive compensation issues.

Finally, for the first time an interactive map allows users to compare and contrast CEO pay ratios of top executive all over the world.

“Not only is U.S. CEO pay out-of whack with historical norms, it is off the chart globally. For example, in Switzerland, where voters recently imposed new limits on executive pay, the CEO-to-worker pay gap is 148 times.  In the United Kingdom, the CEO-to-worker pay gap is one-quarter as large as ours. And in Japan, the gap is even smaller.” said Trumka.

Save The Date For The NH Progressive Summit

NH Progressives Summit 2013

Please Save the Date for the 2013 NH Progressive Summit, Saturday, May 4th at New England College in Henniker, NH!

NH Progressives Summit 2013Once again, Granite State Progress and the NH Citizens Alliance for Action will co-host the NH Progressive Summit, along with sponsoring organizations such as New England College’s Department of Sociology and Social Work and the State Employees Association, SEIU Local 1984. This annual event provides space for new and existing activists to come together and hear from inspiring keynote speakers, as we collectively learn, train, and mobilize for the many issue and electoral challenges and opportunities we face together.

Last year’s NH Progressive Summit theme was “Fighting Back, Moving Forward.” This year, the theme is “Restoring Balance and Common Sense.” Whether it’s undoing the damage caused by last year’s Tea Party legislature, challenging corporate political corruption of our legislative and electoral process, or continuing to fight for key progressive values at the state and federal level – we need to restore balance and common sense in our country.

The 2013 NH Progressive Summit will be a jam-packed, action-oriented, day-long event, with workshops and fabulous speakers – you won’t want to miss it!

More information will be available shortly. In the meantime, you can click here to submit a workshop proposal or volunteer to help behind-the-scenes at the Summit. See you there!

AFGE Says The Presidents Budget Fails Working Americans

AFGE Logo Small

Budget includes proposals that would harm middle-class Americans 

WASHINGTON – President Obama’s fiscal 2014 budget marks a shameful abandonment of his campaign promise to protect the middle class and needy from tax increases or harmful benefit cuts, the head of the largest federal employee union said today.

“Instead of holding to its promise to protect the middle class and the working poor, the administration seems determined to contribute to a worsening of living standards for federal workers, disabled veterans, and the elderly,” American Federation of Government Employees National President J. David Cox Sr. said.

The budget includes proposals that would cut federal retirement benefits, cut Federal Employee Health Benefits, cut Social Security benefits, and cut federal jobs.  The budget also proposes to end the three year pay freeze with a 1% adjustment, an amount so low that it banks $18 billion in savings over ten years for the government to spend elsewhere.

Federal Retirement

The administration’s budget hits federal retirement benefits in three ways: denying pay adjustments, so the salaries on which retirement benefits are based are lower, increasing by 1.2% the amount of salary that employees hired prior to 2013 would pay for their benefit, and reducing the annual cost-of-living increase in Social Security and annuities by using an inferior measure of inflation.

These proposals are unjustified and deviate completely from the standards set by large private employers.  About 98% of private employers that provide traditional pensions charge their employees nothing for this benefit; the administration just keeps charging more and more each year.  The 1.2% contribution increase in the budget would be a permanent cut, even though it is presented as part of a fix to a temporary “problem.”

Regarding the proposed change to the chained CPI, Cox said, “This is no ‘technical fix.’ It is a benefit cut on some of the most vulnerable citizens in our country – the elderly who built this nation’s prosperity, disabled veterans who sacrificed their health and bodily integrity to this nation’s security, and federal retirees who labored under an agreement that their retirement benefits would be adjusted to maintain their living standards in old age.”

According to an analysis by the Center for Economic and Policy Research, using chained CPI for indexing income tax brackets would mean raising taxes 14.5 percent for those earning between $10,000 and $20,000 a year. Sixty-nine percent of the tax increases resulting from chained CPI-indexing would come from households earning less than $100,000, the Center said.

Switching to chained CPI will hit others equally hard. Federal retirees, whose average pensions under the Federal Employees Retirement System (FERS) are just $13,000, will suffer substantial declines in living standards under chained CPI. The average Social Security recipient, who at age 65 receives just $15,000 per year, will suffer cuts of $650 a year by age 75 and $1,130 a year by the time she or he turns 85.

Federal Employee Health Benefits Program (FEHBP) Cuts

The administration’s budget also calls for $8.4 billion in cuts to the government’s financial support for federal employees’ health insurance.  The changes sought by the administration would penalize the ill by charging them higher premiums, penalize families with more than two members by charging them higher premiums, and penalize those in high health care cost regions by charging them higher premiums.

“Adding FEHBP cuts to the pay freeze, furloughs, and retirement and Social Security cuts just defies comprehension.  The President actually says in his budget that federal employees “deserve our respect and gratitude.”  I would describe this package of cuts as evidence of disrespect and ingratitude, and I know that’s how all of our members feel as well,” Cox said.

Poultry processing

The budget also proposes an overhaul to the poultry inspection process that would leave one federal inspector responsible for examining up to 175 birds per minute – or three birds every second – as they whiz down the inspection line. AFGE, along with food safety and consumer watchdog groups, has been urging the administration to withdraw this rule change since it was first proposed in January 2012.

While the poultry slaughter inspection program does need to be modernized, AFGE is concerned that this proposal could have adverse impacts on both food safety and worker safety, Cox said.

“This proposal isn’t about food safety. Speeding up processing times is all about generating more profit for the chicken slaughter industry by moving chickens from the farm to your kitchen table as quickly as possible – regardless of the potential health consequences,” Cox said.

 

The American Federation of Government Employees (AFGE) is the largest federal employee union, representing 670,000 workers in the federal government and the government of the District of Columbia.

For the latest AFGE news and information, follow us on Facebook and Twitter.