Labor in Illinois

Employee Free-Choice Act on floor of Congress

Co-sponsored by Illinois Senators Durbin and Obama, this act would better facilitate the formation and bargaining process of local unions. For example, it would allow for certification of unions as collective bargaining agents based on “card check recognition” in addition to elections. The proposed law also would provide for heavier penalties for employer violations of union contracts. Legislators are concerned that recent National Labor Relations Board decisions side with companies, and hope the act would reinstate the power of the NLRA. --- 4 Jan 2007, The Labor Paper (Vol 111, No. 1), p.1.

Male-on-Male Harassment at Illinois Fed-Ex Facility

A federal court in Urbana ruled that the EEOC presented sufficient evidence to warrant a trial for sexual discrimination occurring at the Kankakee Fed-Ex facility. A male employee alleges that since the time of his hiring in 1999 one of his male co-workers physically harassed him, and engaged in inappropriate sexual conversations. He alleges that though he repeatedly complained to his supervisor, she both trivialized the problem and retaliated against him by cutting his hours and eventually terminating him. The court warranted a trial because numerous claims under dispute.--- 7 Dec 2006, Daily Labor Report (No. 235), p. A-1

Union Pensions Defrauded, Financier Jailed

Michael Linder, third-party administrator for pension plans of union locals, pleaded guilty to embezzling $1.9 million for himself, as well as investing $5 million of pension assets into annuity contracts rather than mutual funds. His victims included Ironworkers Local in Urbana, Plumbers and Steamfitters Union 149 in Savoy, a plumbers union in DeKalb, sheet metal workers in Springfield and Decatur, a painters’ union in Collinsville, the plaster and cement masons local in Peoria, and several ironworkers locals around the state, including those in the U.S. attorney’s office. Some union officials, who were given Harley-Davidson motorcycles in connection with the graft, have already been convicted. Linder is sentenced to seven years in prison without parole, and three years of supervised release thereafter.--- 22 Dec 2006, News-Gazette

Building Trades Unions Hopeful about Construction Boom

Ironworkers leader Joseph Hunt states that recent divisions among building trades unions exist because of personalities and not fundamental matters of labor movement philosophy. He hopes to reunite AFL-CIO construction locals with the major international unions that left to join the “Change to Win” coalition, as well as the half-dozen building trades unions who started a new National Construction Alliance. --- December 2006, Dupage County Labor Record, (Vol. 29, No.9) p. 15

Minimum Wage Increased to $7.50/hour

Governor Blagojevich signed Senate Bill 1268, which increased the adult minimum wage to $7.50, in addition to scheduled increases to $7.75 in July 2008, $8.00 in July 2009, and $8.25 in July 2010. Workers in training and minors under 18 years of age may be paid $.50 below the legal minimum. Though Illinois House Speaker Michael Madigan initially objected, Democrats and Republicans vow that the Act represents a compromise long in the making. --- 19 Dec 2006, Chicago Sun-Times

Tentative Pact between UFCW and Chicago Meat Association

The United Food and Commercial Workers (UFCW) Local 1546 reached a tentative pact with Chicago Midwest Meat Association (CMMA) for united terms of agreement, pending ratification by mailed votes of union members. The agreement potentially draws together meatpackers across various states at several midsize and small meatpacking plants, with about 2,000 UFCW workers.--- 14 Dec 2006, Daily Labor Report (No. 240) A-11

Illinois Fiscal Deficit puts State Pensions and Health Insurance in Danger

Unless the state reduces retiree benefits, it needs an additional $5.9 billion in 2007 revenue to reduce its $106 billion liability for future employee and retiree pensions and health insurance. Currently, the state has $45.7 billion in unfunded pension liabilities, while unfunded commitments to cover health chare costs of employees and retirees are estimated at approximately $48 billion. Furthermore, the state owes $1.7 billion in unpaid Medicaid bills to health care providers. Illinois currently has one of the lowest funding ratios of any state for its government pension plans, and has not set aside trust funds for health insurance as it has for pensions. Increases in income and sales tax are controversial, though predicted.--- 2 Jan 2007, Government Employee Relations, (Vol. 45, No. 2187), p.11