Skip Nav

Government Affairs Report: August 2005

Author: Debbie Golombek, UAL MEC Government Affairs Committee Chair

August 17, 2005

The US Congress is in recess through the Labor Day holiday week-end. The House will reconvene at 2PM September 6 and the Senate at 12Noon on September 6.   When Congress returns to work they will begin making difficult decisions about spending reductions in popular programs to reduce direct spending by $34.7 trillion over 5 years.  The toughest fight will be over cuts to Medicaid but controversy could develop over proposals to increase interest rates, open the Arctic National Wildlife Refuge in Alaska to oil drilling, cut spending on food stamps and raise pension insurance premiums. 

No other major issues are likely to be addressed until the Supreme Court nomination is resolved.  The confirmation hearings will begin on September 6, but there is no guarantee that there will be a floor vote before the next session of the Supreme Court begins October 3, 2005.      

DANGEROUS PROPOSALS FOR AIRPORT SECURITY SCREENING

The Transportation Security Administration (TSA) has proposed a number of changes to their procedures and security screening process which could drastically revise current security procedures.  The TSA is proposing to lift the ban on various carry-on items including knives, ice picks, razor blades and throwing stars. The TSA has also proposed that certain individuals be exempt from security screening including Members of Congress, Cabinet members, state governors, federal judges, high-ranking military officers, people with top-secret security clearance and airline pilots.

AFA has filed a formal complaint with the TSA as these proposals put every Flight Attendant at risk.  Our three main concerns 1) easing the ban on dangerous items poses a safety risk to Flight Attendants and passengers; 2) Flight Attendants are subjected to the same level of screening and background checks as pilots (except FFDO’s) and to exempt one group from screening and ignoring another group is ridiculous; and 3) AFA learned about these proposed changes through the press and TSA failed to discuss these proposals with those who would be most affected.

The Washington Post reported that the Air Line Pilots Association agrees with many of the TSA’s new proposals. 

We will be taking these concerns to Capitol Hill, as well as have Congress weigh in with the TSA. 

SUPPORT FOR OUR LEGISLATIVE EFFORTS TO PROTECT OUR PENSIONS

The California State Assembly is expected to vote on Thursday, August 18, on a Resolution which supports our federal legislative efforts to protect our pensions.  House Resolution 18 calls on the President and Congress to declare their support for, and enact federal legislation that would aid in the protection of airline workers hard-earned retirement benefits.  United Airlines has raised strong objections to the Resolution and has enlisted the help of the Chamber of Commerce in lobbying against it.

Carol Ong, Council 11 Government Affairs Chair is working closely with Assembly member Gene Mullin, the author of the Resolution and has been actively lobbying for support of this resolution.  Carol is coordinating the grassroots activities calling on all California active and retired United employees to contact their State Assembly members.  We have also enlisted Congressman George Miller’s help in trying to contact some Democratic Assembly members who have expressed some concerns about the Resolution.  The Republican Assembly Caucus, chaired by Assembly member Kevin McCarthy, is opposed to this Resolution, in part because they believe that the Resolution was not heard by the proper committee; that procedural process was not adhered to; they do not wish to interfere with in private industry; and that the Chamber of Commerce opposes the Resolution.   

A similar Resolution sailed through the California State Senate in June and passed unanimously.     

Patrice Anderson, Council 9 Government Affairs Co-Chair introduced a Resolution at the Executive Board meeting of the Colorado State AFL-CIO.  The Resolution acknowledges the Colorado labor community’s support of legislation providing for a six-month moratorium on pension plan terminations and support for our efforts to protect our pensions. The resolution passed unanimously.

Similar resolutions have been introduced and passed by Democratic Clubs in South Florida and Orange County, CA.

Press Conference:

Congressman Joe Crowley (D-NY), sponsor of the Miller-Schakowsky-Crowley amendment prohibiting the PBGC from using appropriated funds to implement the settlement deal between the PBGC and United, held a press conference at LaGuardia Airport highlighting the loss of retirement benefits of United employees and the need for legislation to help airline workers.  Dianne Tamuk, Dick and Donna Hansen and I spoke on behalf of the Flight Attendants, Mark Seal, United Local ALPA Chair, represented the United pilots and Dino Atsalis, Delta ALPA MEC Government Affairs Chair, spoke about the Isakson/Price bill. 

Update:

Since my last update, July 25, there is little to report on our legislative efforts regarding our pensions.  While Congress is in recess no new cosponsors to HR 2327 or S. 1158 can be added.  We are trying to arrange a meeting with key Congressional staff about the possible introduction of new legislation but because many staff members are also on vacation our efforts to schedule this meeting are slow-moving. 

Local Council Government Affairs Committee members are also trying to schedule meetings with District offices during the recess. 

FOREIGN OWNERSHIP/DOT REGULATIONS

The Department of Transportation (DOT) is asking for public input to improve existing rules, to identify new rulemaking needs and to help the Department prioritize its regulatory activities.  The DOT held a public meting in April, as part of this initiative and industry groups were well represented.  United Airlines offered their views on foreign ownership and capacity and consolidation.

The following is a summary of the aviation issues discussed, provided by TTD:

Role of US Government Regulation:  The Air Transport Association (ATA) stressed that the dire economic condition of the US airline industry makes it all the more important to eliminate “unjustified regulatory burdens.” ATA urged DOT to not pursue any regulatory initiatives that are “an intrusion into the marketplace.” United Airlines stated that regulation “remains a heavy tax” on the industry and urged the DOT to work toward total deregulation.  ATA and United both stressed the need for a coordinated approach to regulation by all relevant federal agencies.

Role of Foreign Regulation:  The ATA expressed concern over the “growing assertiveness” of foreign regulatory bodies over US carriers, including in the areas of code share agreements, privacy and access to passenger name records, and liability.  United urged DOT to work with the European Union (EU) specifically to remove “redundant or conflicting” regulations.

Capacity and Consolidation: United offered the view that the biggest problem in the US industry is overcapacity, and urged DOT not to favor any carriers (new entrants or legacy carriers) but to leave that up to market forces.  In addition, United expressed frustration that the department of Justice “refuses” to allow consolidation (this was pre USAirways/AmericaWest merge), whereas the EU and China actively encourage consolidation. 

Foreign Ownership: United Airlines also urged DOT to “completely eliminate” restrictions on foreign ownership of US airlines.

As we know, Glenn Tilton has been lobbying to change foreign ownership rules, since the beginning of this year’s congressional session.  Current US law requires US airlines to be substantially owned and effectively controlled by citizens of the United States.  This means that US citizens must own and control 75% of the voting securities of a US airline and that two-thirds of the offices and directors of a US airline must be US citizens.  In general, AFA believes this standard should be retained.

Since the US and EU began talks last year to negotiate an aviation agreement to lift restrictions in the transatlantic aviation market, the Administration has been urging Congress to ease limits on foreign ownership. Last year, the Department of Transportation unsuccessfully sought approval to raise the limit on how much of a US airline’s voting stock can be held by foreign investments, from 25 percent to 49 percent.     

The United States and the European Union came close to an “open skies” agreement last year, but the talks broke down over the issue of cabotage, which would allow EU carriers to fly US domestic routes.  

Foreign ownership and cabotage are likely to surface again soon.  Elimination of restrictions on foreign ownership could result in the outsourcing of our jobs, if a foreign airline owner turns profitable international flying into a double-breasted operation.    

CAFTA

The Dominican Republic-Central American Free Trade Agreement (CAFTA) was signed into law after the US House narrowly approved it 217-215 in a cliffhanger vote, where Congressman Robin Hayes (R-NC) changed his nay to an aye, giving the Republican leadership a victory.  The vote came a month after the Senate approved the agreement 54-45. 

The agreement which is modeled after the North American Free Trade Agreement (NAFTA) does not contain adequate environmental protections or enforceable protections for such core workers’ rights as the freedom to choose a union. The absence of enforceable labor standards in this agreement is a missed opportunity to spread the benefits of development, like livable wages and basic worker protections, to the average working person in these countries.  The agreement offers strong backing and protections to corporations, while opponents believe that, like NAFTA, the bill will encourage American companies to shift more jobs to these countries. 

The vote on CAFTA is considered a “litmus test” for many labor leaders who have indicated they will not back frontline Democratic candidates who voted for CAFTA.  The CAFTA vote included 15 Democrats who voted for passage, and 29 Republicans who voted against the measure.  Before the vote the AFL-CIO adopted a resolution which commits the federation to “a non-partisan political and legislative strategy that bases labors’ support on union issues and worker issues, not political parties.”     

HEALTH CARE CRISIS

The Economic Policy Institute reports the economic well-being of middle-class families has declined between 2000 and 2003 because of the economy; President Bush’s tax policies; and the cost of health care.  Since 2000, according to the Kaiser Family Foundation’s authoritative survey, healthcare premiums for family coverage have increased by 59%, six times faster than inflation. 

Because of the growing numbers of Americans without health insurance, working families pay higher premiums to cover the uninsured. Rising health care costs are forcing more companies to pass more of their health care costs on to the employees.

The recently introduced Health Care Accountability Act would require states to publish the number of employees at large companies who receive taxpayer-subsidized health insurance instead of employer-based coverage. Wal-Mart the world’s largest corporation is also the largest employer of people on Medicaid.  Taxpayers end up paying for their Wal-Mart bargains with increased taxes to fund Medicaid.

The Administration’s response to America’s health care crisis has been to cut funding for coverage and offer privatization plans, such as Health Savings Accounts (HSAs).  HSAs are based on a belief that medical inflation can be contained if patients are forced to pay more for their own doctor and hospital bills rather than having their employers or insurers help with the costs.     

We cannot let our leaders in Congress ignore this problem any longer. Almost two-thirds (63 percent) of US adults cite lowering health care costs and health insurance as a top priority for the President and Congress. CWA is launching a healthcare reform campaign through a new web site designed t have our concerns heard in Washington and around the nation. 

HOMELAND SECURITY DEPARTMENT LOSES LABOR RULES FIGHT

In am major victory for 180,000 civilian employees at the Department of Homeland Security (DHS), a federal judge blocked the agency from implementing new rules that would significantly restrict collective bargaining rights.

The ruling is in response to a lawsuit filed by several unions representing these workers after the DHS issued sweeping changes to personnel rules governing how workers are paid, promoted and disciplined.  The new regulations gave DHS management the right to override any provision in a labor agreement by simply issuing a department-wide directive.  

The decision applies just to the Homeland Security Department.  But it has broader implications because the White House has described the rules there as a model for changes it would like to make at other federal agencies, including the Defense Department.  

SOCIAL SECURITY

August 14 marked the 70th anniversary of Social Security. Today, nine out of 10 Americans 65 years or older receive Social Security benefits and about two thirds of them get more than 50 percent of their income from the program.   

At the signing ceremony in 1935, while the US was in the depths of the great depression, President Franklin Roosevelt said “We can never insure 100 percent of the population against 100 percent of the hazards and vicissitudes of life, but we have tried to frame a law which will give some measure of protection to the average citizen and his family against the loss of a job and against a poverty-ridden old age.” 

Without Social Security almost half of Americans over the age of 65 would have incomes below the poverty-line. 

CEO PAYWATCH 

The ratio of CEO pay to average worker pay reached 301 to one in 2003.  The average worker takes home $517 a week, while the average CEO earns $155,796, according to Business Week.  In 1982, the ratio was 42 to one. 

FUNDRAISING EVENT

A small group of Jan Schakowsky’s supporters are working to organize a “Flight Attendant Fans of Jan” fundraising event in Chicago the evening of Monday August 29.  Because of Federal Election Commission (FEC) regulations this is being organized as a non-union related activity.  We can encourage Flight Attendants to attend this event but we must make it clear that this is a non-AFA sponsored activity.  

The event will take place in downtown Chicago, at a place still to be determined.  This will be a small dollar donor event and I hope that everyone attending the CWA Convention will have the opportunity to attend.   More information will follow.

As always, if you have any questions regarding this report or our legislative agenda, please feel free to contact me either by e-mail or phone.