Labor in Illinois

Weekly Labor News
Week of July 23, 2007

Caterpillar Contends that UAW Should Pay for Healthcare Lawsuits

Because Caterpillar’s branch of the United Auto Workers participated in negotiations for worker and retiree health insurance, the company contends that the union should pay for lawsuits brought by dissatisfied employees. To that end, Caterpillar has filed a lawsuit in Tennessee against the UAW International and seven locals to reclaim legal fees. – Peoria Journal Star (26 July 2007)

State Intervenes in Labor Dispute Between City and Chicago Transit Authority

The Illinois General Assembly has helped strike a deal between the city of Chicago and its public transit workers. The CTA’s contract with the Amalgamated Transit Union, which represents 10,000 workers, was extended for five years. Workers are required to contribute 3% of their pay for health benefits, and contributions toward pensions have increased to 6%. Workers are required to work until 64 to receive their pensions, up nine years from 54. Annual raises will be 3.5%, about the rate of inflation. Meanwhile, the CTA will contribute 12% of the payroll into these individualized worker retirement funds (not the hoped-for 401Ks). Crain’s business news reports, “The deal was structured as a negotiated settlement to a pending arbitration case.” Therefore, the settlement will not be voted upon by union members. – www.chicagobusiness.com (27 June 2007)

United Airlines Pilots Protest Outside Company HQ

Over 100 uniformed pilots participated in “informational picketing” in front of the downtown Chicago headquarters of the United Airlines headquarters. They protest the tens of millions of dollars in stock and option awards granted to top U-A-L managers, while employees were given pay cuts. The company has declared bankruptcy, allowing for such pay cuts. However, the company still hauls in revenue in order to “recover.” – WREX TV (23 July 2007)

House Approves Bill With $11 Billion in Funding for Labor Department

The House passed legislation 276 to 140 providing $11.9 billion in discretionary spending for the Labor Department. It came as part of H.R. 3043, the Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act of 2008. However, Democrats expect Bush to veto the legislation, and do not expect a 2/3 majority for an override. – Daily Labor Report (20 July2007): AA-1.

One significant, last-minute amendment to the House Appropriations Bill proposed to cut 20% of the funding provided for the Department of Labor’s Office of Labor-Management Standards, an agency that monitors unions. Illinois Representatives Ray LaHood (R- 18th District) and Peter Roskum, each of whom voted against the Employee Free Choice Act, did not vote with many other House Republicans who lobbied against the amendment. Meanwhile, Illinois Representative Mark Kirk (R-10th District) voted for the amendment. – Weekly Standard (20 July 2007)