Even the U.S. President can't freeze your pay when you have a good union contract



CAL fleet service workers


A lot of people don't understand why a good union contract is such a great thing to have.

Here's one terrific reason: If you have a pay raise in your contract, management can't freeze your pay unless they bargain with you first. 

Late last year, President Obama said he was freezing federal workers' pay. But even President Obama can't freeze federal union workers' salaries if their contracts include a pay raise. Reports the Washington Post,

...the freeze has already set in for federal employees, most of whom have had their pay put on ice for two years beginning Jan. 1. But not for some of Uncle Sam's workers, who are wrapped in the blanket of a union agreement. President Obama's pay freeze, which Congress approved last month, does not apply to raises negotiated through union contracts...

There are still a lot of government union workers affected by the pay freeze. That's because their contracts cover working conditions and not pay. But despite the president's freeze, a whole bunch of our brothers and sisters will get raises, including those at the National Treasury Employees Union, The National Air Traffic Controllers Association, International Federation of Professional & Technical Engineers and he American Federation of Government Employees.

Continental Airlines fleet service workers will soon learn the advantage of a contract when their first retroactive pay increases arrive next week. The CAL workers scored a huge triumph last year when they joined the Teamsters and negotiated their first contract (first contracts, by the way, aren't easy to get). The contract offers protections against unjust discipline, terminations, outsourcing and furloughs, as well as a 10.5 percent pay raise over 30 months. 

One minor drawback to contracts is that they are legal documents and can therefore be confusing.  The Teamsters offer some guidance about the Continental contract here or go to the bottom of the page here.

Today's Teamster News 12.31.10

Unemployment claims drop unexpectedly  Los Angeles Times   ...signs are mounting that employers might at last be starting to hire new workers...
Storm hit NYC on eve of sanitation worker shake-up  Associated Press   ...Harry Nespoli, president of the Teamster's local that represents sanitation workers including plow drivers, also denied a city councilman's claims that sanitation workers' bosses encouraged a slowdown...
Continental Fleet Service Workers Ratify First Contract  IBT   ...Agreement provides for multiple job protections, significant sage increases...
Rattner settles pension kickback case for $10 million  New York Times   ... financier Steven L. Rattner has agreed to pay $10 million to settle civil charges that he engaged in a kickback scheme involving New York state’s pension fund...
NewPage union: 'No'  (Local 486)  Escanaba Daily News   ...Union employees at NewPage overwhelmingly rejected the latest contract offer from the company...
Aspinwall labor talks for 4 come down to wire  (Local 249)  Valley News Dispactch  ...Aspinwall officials are negotiating a new three-year contract with the borough's four full-time public works employees...
Saline employees agree to health-care concessions  (Local 214)  annarbor.com   ...Saline's two police unions, members of Teamsters Local 214 and its nonunion employees recently agreed to concessions...
 

Woo-hoo! Continental ramp workers ratify first contract!

It's official! Continental Airlines 7,600 fleet service workers can look forward to job security and four pay hikes over the next 2-1/2 years, now that they've ratified their first-ever contract.

The "We Have Our First Contract!" flier announcing the great news says,

...the contract offers protections against unjust discipline, terminations, outsourcing and furloughs, and provides for 10.5 percent pay increases over the life of the 30-month contract. The contract protects our pension, caps health-care costs and provides for our bonus...

This is a big victory in the war to raise workers' living standards. It's very hard to get to that first contract. Many newly-organized workers never manage to bargain successfully with their employers. A Cornell University professor who studied the problem found 52 percent of workers who form a union are still without a contract a year after they win an election. Two years after the election, 37 percent don't have a contract.

The  Teamsters negotiating committee did a great job with Continental management. Miguel Vasquez, a fleet service worker in Newark, was on the committee. He said the contract adds protections for workers -- "including an important grievance procedure."

James Wells, a fleet service worker in Boston, said he's looking forward to having some solid protections in writing. “Without a contract we don’t have any real power, but now we’ll be able to flex some muscle when we stand up for our rights.”




Meet some of the other Continental fleet service workers here.

Today's Teamster News 11/12/10

Teamsters Mechanics at Continental Approve Amended Contract IBT ... the mechanics of Continental Airlines ratified an amended collective bargaining agreement with the airline...

Regulators flawed in foreclosure oversight Washington Post ...Even as the OCC and other federal regulators were failing in recent years to detect flawed foreclosure practices, evidence was building that abuses were widespread...

1.2 million people want a job but aren't looking USA Today ...When the job market improves, many Americans on the sidelines will return to the labor force, holding up the unemployment rate...

9/11 workers face deadline for health settlement Associated Press ...Thousands of laborers, police officers and firefighters suing New York City over their exposure to toxic World Trade Center dust have until Monday to decide whether to join a legal settlement...

Cost of Green Power Makes Projects Tougher Sell New York Times ...a growing number of projects are being canceled or delayed because governments are unwilling to add even small amounts to consumers’ electricity bills. ..

Today's Teamster News 09/17/10

Lost Decade for Family Income Wall Street Journal ...new Census data show ... years of stagnant wage growth ... made the past decade the worst for American families in at least half a century.

After Vote on Airline Merger, Real Work Starts Wall Street Journal ...Shareholders of United Airlines ... and Continental Airlines ... will vote Friday ... on the merger of their carriers, the last major step before the transaction can close by Oct. 1.

Obama Appoints Elizabeth Warren To Advisory Position On Consumer Protection Talking Points Memo ...The White House ... appoint(ed) Elizabeth Warren to ... help the administration set up the Consumer Financial Protection Bureau.

Protecting workers' rights builds a win-win economy (opinion) Gaston Gazette ...It’s encouraging that the National Labor Relations Board is taking preliminary steps toward justice for Stabilus, Inc. workers...

Links 07/28/10

Public Employees Get More Benefits Wall Street Journal ...88% of state and local government workers had access to employer-sponsored medical plans, compared with 71% of private-sector workers


UAL-Continental Merger Moves Ahead Wall Street Journal ...Negotiations between UAL Corp.'s United Airlines and Continental Airlines Inc. are picking up pace, with parties believing a merger deal could be reached at the end of this month or early May

The jobs machine grinds to a halt Washington Post ...Ain't no hiring. And ain't likely to be any for a good long time.

Qualms build over consumer agency Politico ...The BCFP will also enjoy broad rule-making and enforcement authority over virtually all financial institutions in the nation.

Companies hold record $837B in cash, yet won't hire workers USA Today ...instead of spending on the typical things, such as expanding and hiring people, companies are mostly pocketing the money and stuffing it under their corporate mattresses.

Cities, counties face job cuts Las Vegas Review-Journal ...Nearly half a million city and county government jobs could be eliminated nationwide in the next two years because of budget shortfalls, a new study estimates.

Links 07/23/10

President Obama signs six-month extension of emergency unemployment benefits Washington Post ...The jobless bill revives a program that provides up to 99 weeks of income support to those who have lost their jobs in the recession.

Treasury Secretary Geithner says tax cuts for rich should expire Washington Post ...the White House wants to extend Bush-era tax cuts that benefit families earning less than $250,000 a year. But he said President Obama believes cuts affecting the top tax brackets should be allowed to expire on Jan. 1 to help reduce the nation's bloated budget deficit.

Lobbying By Obama Administration Foe U.S. Chamber of Commerce Grows To More Than $44 Million This Year OpenSecrets.org ...The lobbying powerhouse U.S. Chamber of Commerce, along with its subsidiaries, spent a whopping $13.4 million on federal, state-level and grassroots lobbying during the second quarter.

Netroots-Labor Solidarity: A Work in Progress In These Times ...Netroots Nation shuns hotel over worker treatment, as bloggers and labor strenghen alliance.

Union, Giant Food strike deal on 341 jobs for warehouse: Grocer transferring operations in Jessup Maryland Business Gazette ..."We have reached agreement with Teamsters Local 730 concerning the effects of the transfer...

Which Senate hopefuls would defend secret ballots in union votes? Charleston Daily Mail ...
The AFL-CIO believes Manchin supports the plan. The state Chamber of Commerce believes Manchin opposes such measures.

U.P.S., Citing a Strong Performance, Raises Outlook New York Times ... the package delivery company said Thursday that its second-quarter net income increased 90 percent and raised its earnings outlook for the year

Continental Returns to Profit Wall Street Journal ...Continental Airlines Inc. reversed a big year-earlier loss in the second quarter, beating Wall Street estimates and underlining the airline industry's broader turnaround.