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Spring Edition 2002

Contract Negotiations School

by Bob Lanucha - Operators' Representative

On behalf of Dan Francis and me, I would like to thank all of our union members who approved the motion to send us to this school. I would like to start out by saying that the education we received at the George Meany Labor College was priceless.  I can honestly say to all of you that it was worth every penny and then some.  When we first got there I could tell we would benefit from taking this course.

It was a five-day course and we were in class about eight hours a day. Our instructor’s name was Andy Banks.   Andy has been involved in the labor movement for over 25 years.   He’s taken some of the "Giants" of industry head on.  A few of these include Eastern Airlines, Volkswagen, and UPS.  Let’s just say he’s seen it all.

We had a chance to listen to two guest speakers as well.  The knowledge and experience that they brought to the course was again priceless.  The most valuable of the two I think was Mike Yoffee.  He didn’t just speak to us. He led us through a class exercise and taught us how to "cost out" a contract.  I cannot stress how important it was to learn this.   It taught us how to determine how much it actually costs the company to pay us. This includes everything we don’t see in our paychecks, i.e. vacation time, funeral leave, health and dental benefits, sick leave, pension, etc.  I won’t get into details but trust me when I say this knowledge will be a valuable tool come negotiation time.

 Speaking of negotiations, we also gained some insight on how to establish our negotiation team.  Things like ground rules, strategizing, and communication amongst ourselves as well as the membership. We truly feel that keeping the membership involved THROUGHOUT negotiations is important.  We have several ideas on how best to do this.  We don’t want to just come to the membership with a contract to vote on. We want all of you to know how we got there.  I also think that will create strength and solidarity when it does come time to vote. We believe that informed members will be happier members.

While in Maryland, Dan and I drafted a survey that we will be presenting to you in the near future. We presented our draft to the rest of the executive board and together we will fine-tune it. We want to make sure we represent the concerns of all of our members.  The best way to do this is through one-on-one networking. This requires effort on both of our parts. We need to know your concerns but you need to be willing to take a few moments to share them with us.  Someone from our survey team will sit down with each one of you to get your responses to the questions.   You will be asked to answer honestly.  Your responses and your identity will remain anonymous. We will go through the surveys to get a feel for what the most pressing issues are. Please be assured that we have the entire membership’s best interests at heart. We want to present a UNITED front when we go into negotiations.

Last, we learned about strategic planning.  The company started with their strategizing some time ago. It may not have been noticeable at the time and it still may not be to most of you now. However, after taking this course, Dan and I realized that it will all come into play sooner or later. We are working on strategies of our own and feel confident that this course gave us some great ideas and put us on the right track to implementing them.

Let me close by reminding all of you that there is strength in numbers. I will be proud to stand side by side with each and every one of you to fight for what we want. We have the power to succeed together or to fail together. Either way I am proud to be a member of our union and happy to sit on the executive board as the Operators Representative.

Why Union?

by Kathleen Kennedy

Lately I have been hearing a lot of rhetoric about whether or not we need to be in a union.  Here are some facts:

Ø      90% of unionized workers have pension plans compared to only 76% of non union     workers

Ø      50% of union workers have been employed with their current employer for more than 10 years compared to only 22% of non union workers

Ø      The Social Security System would not be around without the efforts of the American Unions

Ø      The 40-hour work week was a result of Unions

So, what is a Union?  A union is merely a group of workers banding together to promote and/or protect their common interests.  Remember, standing alone you are relatively helpless when dealing with your boss.  However, by joining together with others you can get on almost equal footing with the employer.  Hence the basic concept: where there is unity there is strength.

Later this year we will be negotiating a new contract.  This will be a test of our resolve.  Recently, our management has spoken with some us, in an informal manner, broaching the subject of not really needing a union any longer.  I find the timing quite interesting and perhaps even well planned.  Sure, you may think things are going well and may even be questioning the need for our union, but then why is management concerned with the need, if things are going that well?  A possible answer to that is that they are trying to weaken our resolve.  A weaker union will be easier to beat in negotiations.  If we are not strongly united at negotiations then we can expect to come away with less than what we have now.  Think about it…our boss, who claims to really want what is best for us, will try to keep our raises to a minimum while attempting to lessen our benefits.  Will our work lessen? … NO!  Do we really want to work for less? … NO! 

We need now, more than ever, to become united.  Be a part of the process!  Be a voice and let that voice be heard!  As our numbers increase so should our strength.  Embrace those new members, because they can and will strengthen us.  We, the Executive Board, need you!  We need your ideas!  We need to know what you want for the upcoming negotiation!  We need your direction!  And we need your support!  We need you!

UNITED WE WILL BE STANDING!         

2002 BUS ROADEO

 Plans are jointly being made for our participation in the 2002 CASTA Bus Roadeo that will be held in Colorado Springs on June 15^th.  This is the fourth year Springs Transit has hosted this event.  We can send up to three participants to the event.  Our tentative plans call for our own preliminary Bus Roadeo on Sunday May 15^th.  The operators with the top three scores may go to the CASTA event.  Please look for details in the near future.

New Alliance

by Brad Henry & David Fitzgerald, Vice President

We had the privilege of representing our members at the convocation of the New Alliance, at a meeting in Denver, CO. Those present voted to support it. This is the new path the AFL-CIO is pursuing, the purpose being to better organize our state and support issues that are important to working families.  Since the joining of both the AFL and the CIO the percentage of union members has declined. The larger the voice the better it is heard. One person can say the same thing that one thousand says but it is not as strong. They have picked ten political races in Colorado as important and half are in southern Colorado, starting with Colorado Springs.  This is being done so that the labor movement can keep up with the future. If anyone is interested in receiving email on legislative issues they can subscribe at:       get_active@coaflcio.org

Our Pension Plan ... Can We Fix It?

by Dan Francis, Pension Plan Union Trustee

The Enron debacle has brought the topic of pensions to the forefront of the business world.  Thousands of workers had their retirement dreams ruined because of greed, deceit and misinformation from an employer.  The utter hypocrisy is that Enron demanded loyalty and trust from its employees. Out of this travesty has come a public and political focus on the regulation and fiduciary responsibility of pension plans.  Let’s talk about ours, because providing for our member’s retirement is a priority with unions.

We have a defined-benefit pension plan.  That means our benefit is spelled out in our plan document for participants when they retire.  Our plan is  regulated by the U.S. Dept of Labor and the I.R.S. under ERISA law.  It is also a Taft-Hartley plan which spells out there are two union trustees and two company trustees who are to make decisions that are in the best interest of the plan and participants. There is also a plan administrator which is appointed by the plan sponsor (P.T.M. Inc.) who sees to it that the plan is administered according to the documents and trustees.  Daryl Abelstad and I are the union trustees, Marvin Pritchard and Rick Forrest are the employer trustees and Larry Tenenholz is the plan administrator.  All of the above are fiduciaries and must always act in the best interest of the plan and participants.  If there is a breech, a fiduciary can be held criminally and personally liable.

There are a number of problems and errors in our plan that have been discovered in recent months. The trustees must now begin the difficult task of correcting those mistakes.  This must be done in such a way as not to hurt the plan and participants as well as keep our plan legal according to ERISA.    Most of these errors were under Laidlaw’s sponsorship.  

These are the known errors at this time:

Error #1   Payments in Error to Rehired Participants  The Plan Document states that when a retired participant is rehired and works more that 40 hours a month, their payments should stop and be recalculated at a higher amount when they finally retire.  We had 3 participants that were in that category over the last 5 years, but their benefits were not stopped or recalculated.  This error is approximately $70,000.00 though the exact figure has not yet been given by the company.  This error could have been avoided if in 1996, when part timers were introduced into the Labor Agreement, the trustees would have amended the plan document.  It wasn’t done. The current trustees are now stuck with correcting this error. The correction must be approved by the IRS. 

Error #2   5500 Form  The 5500 is the form that must be filed with the IRS, informing the government of things like the plan sponsorship, plan administration and actuarial information.  For at least the past 3 years, either the wrong plan sponsor, wrong plan administrator or the wrong EIN number was listed and sent in to the IRS. 

Error #3  Missing Meeting Minutes  The plan made a major change a couple years ago at the direction of Mercer, our actuary and investment consultant.  Our longtime contract with Hartford Insurance was discontinued and our funds invested in an asset allocation plan provided by Mercer.  Verlinda Bush, the employer trustee was the trust secretary and was to take minutes documenting our meetings including this change.  Documenting trustee meetings is required by ERISA. Numerous requests have been made to obtain these minutes, but they have not yet been provided.  Ms. Bush now works for another employer, making this even more difficult.   

Error #4   Payment to Winston & Strawn  At a September trustee meeting the decision was made to hire Michael Melbinger to rewrite and amend our plan document to bring it in compliance with ERISA.  He worked for the legal firm of Winston & Strawn.  He was chosen after considering a couple other bids based on his email that stated it would cost no more than $1,600.00.  We were billed for, and our plan administrator authorized payment to this firm totaling $9,700.00.  It was probably an honest mistake, but at this time our plan is out over $8,000 more than was approved by the trustees.

There are several possible directions the trustees can take to correct these errors.  They can stick their head in the sand and ignore them, however with these errors being brought to light it will be difficult and irresponsible. They can fail to obtain “expert advice” and make decisions that are not in the best interest of the plan. They can face the errors, get expert advice, and take reasonable and appropriate steps to make legal corrections and deal with losses the fund has suffered. Or, they can blame the discovery of the errors on the union insinuating that a blind eye and a sweep under the rug would have saved everyone a lot of trouble.

In a meeting about a month ago, Larry Tenenholz stated that he and his people always “do the right thing”.  It will be interesting to see if these errors and problems are corrected such a manner.  Will it be “the right thing” for the plan and participants or “the right thing” for the employer’s interest? This is your plan.  Take note.  Ask questions.  Request the documentation the plan sponsor is required to provide the participants.  Watch what the trustees do, not what they say.  Ask to attend the trustees meetings.  It’s your money.  It’s your retirement. It’s your future. Stay tuned, I will continue to keep you informed of future developments.

Regarding Job layoffs in the U.S.

Joe Smith started his day early having set his alarm clock (Made in Japan) for 6 a.m.  While his coffeepot (Made in China) was perking, he shaved with his electric razor (Made in Hong Kong).  He put on designer jeans (Made in Singapore) and tennis shores (Made in Korea).  After cooking his breakfast in his new electric skillet (Made in India) he sat down with his calculator (Made in Mexico) to see how much he could spend today. After setting his watch (Made in Taiwan) to the radio (Made in India) he got in his car (Made in Germany) and continued his search for a good paying AMERICAN job.  At the end of yet another discouraging and fruitless day, Joe decided to relax for a while.  He put on his sandals (Made in Brazil) poured himself a glass of wine (Made in France) and turned on his TV (Made in Indonesia), and then wondered why he can’t find a good paying job in …AMERICA…

Retirement – Make Your Plans Now

By Daryl Abelstad, Pension Plan Union Trustee

As coach operators, we frequently observe retired passengers.  We see people who have had to sell off all their assets just to live in a rundown apartment and often must choose between purchasing food or medicine.  We also see those seniors who apparently live well and enjoy their golden years.  Which ones planned, and which ones didn’t?  More importantly, will you plan for retirement or not? 

Retirement by definition is the conclusion of ones working career, (“to remove oneself from the daily routine of working”).  More than a statement of a particular age, it is a matter of financial ability to live a certain life style until you die.

At Springs Transit we are provided with one tool to help in our retirement planning.  It is our defined-benefit (DB) pension plan.  A DB plan spells out the monthly benefit based on your years of service and your age.  Our basic benefit at this time is $50.00 per month, for each year of service at age 62.  This is a secure asset, but should only be a portion of your retirement package.  Other items should include:

q   Social Security

q   Savings

q   IRA’s

q   401K’s

q   Real Estate

q   Bonds

q   Stocks

Whether you are 20 or 50, the time to start planning for your retirement is now!!!  Not only is a plan important but there must be the discipline to execute the plan.  Start saving from this paycheck and make it a priority to “pay yourself first”.  Isn’t your and your family’s future more important than the well being of McDonald’s or Tinsletown? Don’t end up like aforementioned retired person who didn’t have a plan or make the necessary investments into their own future.

Editors note: Daryl has offered to share his financial wisdom and experience with the membership on a regular basis.  He is willing to discuss financial issues and retirement options.  He is a great resource, please use him.  In future publications Daryl will discuss the “Roth IRA”, “The Power of Compound Interest” and the “Rule of 72”.

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