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The AFL-CIO posted a net gain of more than 141,000 members in 2009. According to the labor federation’s membership report released early this month, new affiliations and growth of existing affiliates contributed nearly 402,000 new members in 2009, offsetting the loss of more than 260,800 members. The AFL-CIO bases its membership count on per capita taxes paid by affiliated unions. Below are highlights of the federation’s 2009 membership report:

• The AFL-CIO reported total membership of 8.5 million in 2009, compared to 8.4 million members in 2008 and 13 million in 1999.

• Two new affiliations in 2009 accounted for 272,350 new members. These include 213,000 at UNITE HERE as well as 59,350 members of the American Federation of Television and Radio Artists, which previously reported with another union.

• Twenty-two unions posted membership increases. The greatest growth in members (43,851) was reported by the American Federation of State, County and Municipal Employees. Recording the next largest membership gains were the American Federation of Teachers (29,286), American Federation of Government Employees (15,568), American Postal Workers Union (11,781) and International Association of Fire Fighters (7,250).

• Nineteen unions reported shrinking membership rolls, with the United Auto Workers posting the greatest loss – 84,656 members. The other biggest losers were the United Steelworkers (57,732), the International Association of Machinist (27,035) and the Communications Workers of America (21,333).

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A new three-year contract between Costco Wholesale Corp. and the International Brotherhood of Teamsters (IBT) providing biannual bonuses and pay increases of $1.50 over the contract term has been approved by a 65 percent margin. The contract covers 40 California locations represented by six IBT local unions. The 12,000-member bargaining unit includes clerks, meat cutters, warehouse staff, stock workers, and delivery drivers.

The pact increases pay by $1.50 per hour over the contract term, beginning with $0.50 per hour retroactive to February 1, 2010. Employees will receive additional $0.50 per hour increases effective February 1^st of the next two contract years. Twice yearly bonuses will range from $5,000 to $8,000, depending on years of service. The new contract also strengthened job security provisions.

In addition to the California pact, Costco and the IBT have reached a tentative contract covering 3,500 members in Maryland, New Jersey, New York and Virginia. The proposed contract terms were unknown at press time.

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The Long Island Railroad (LIRR) has reached an agreement with the New York Attorney General intended to curb alleged abuse in the railroad’s occupational disability pension system. Under the March 22^nd agreement with Attorney General Andrew Cuomo, LIRR will appoint an independent examiner to review the pension system and to design compliance rules and controls.

The agreement stems from an investigation of a scandal involving occupational disability benefits granted to LIRR retirees by the U.S. Railroad Retirement Board (RRB). The attorney general’s investigation found that more than 90 percent of LIRR retirees applied for and were awarded disability benefits to supplement their regular pensions. Although the RRB improved its oversight of the disability payments in 2008, Cuomo and the railroad decided to implement controls to assure that only occupationally disabled workers were granted disability benefits.

The agreement provides that the independent examiner will evaluate multiple aspects of LIRR’s operation and make recommendations for improvements. The review will include ethics instruction, the organization and training of the pension office and the compliance unit, and the railroad’s monitoring of job safety. The examiner will also study the employee application process and the procedures for staff review of disability pension benefits. Following the examiner’s assessment, he will recommend measures intended to ensure that disability benefits are granted only to legitimate applicants.

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A federal judge has ordered Illinois Central Railroad Co. to reinstate a conductor who spent 16 months in federal prison for embezzling union funds (United Transp. Union v. Illinois Central R.R. Co., N.D. Ill., No. 08 CV 4001, 3/16/10). Enforcing an earlier arbitration award under the Railway Labor Act, Judge Samuel Der-Yeghiayan’s ruling also determined that the company has no obligation to provide back pay for the period of William Miller’s imprisonment.

Miller began work as a machinist for Illinois Central and was represented by the International Association of Machinists (IAM) Local 498. During a two-year term as secretary-treasurer of the IAM local union, Miller embezzled $63,000 from treasury funds. In November 2005, he pled guilty to charges of embezzlement and obstruction of justice. Miller claimed that he notified his supervisor of his felony conviction, in accordance with company “Rule H.” The railroad asserted that it had received no notification and fired Miller for violating the company rule. He entered prison in July 2006.

By this time Miller was working as a conductor represented by the United Transportation Union (UTU). His claim for reinstatement with back pay went to arbitration before the Public Law Board (PLB). The PLB draft decision, dated July 18, 2007, ordered his reinstatement with back pay. Illinois Central sent a reinstatement letter in August 2007 ordering Miller to report to work within 15 days. However, since the conductor was not released from prison until early November 2007, he failed to meet the company’s deadline and was refused reinstatement. The UTU filed suit to enforce the arbitration award.

The effective date of the PLB award was central to the case. Although the draft decision was issued in July 2007, Judge Der-Yeghiayan found that the PLB award was not effective until it had been signed by two of the three board members. The award received the required two signatures on November 30, 2007 – a date when Miller was out of prison and available to work. Upholding the arbitration award, the judge ordered the conductor’s reinstatement with back pay for the period following his release from prison. Der-Yeghiayan rejected the UTU’s argument that the award intended Miller to receive back pay for the period of his incarceration when he was unavailable to work.

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The Communications Workers of America (CWA) have ratified a three-year agreement with AT&T Southeast Region after voting in January to reject the initial tentative agreement (Labor Relations Advisor, January 2010). The contract follows the general pattern set by other recent three-year pacts with the company (Labor Relations Advisor, August, September and December 2009). The pact covers a nine-state area and 35,000 employees, including core wireline workers and advertising, publishing, utilities, and billing employees. The parties agreed to eliminate the Health Reimbursement Account proposed in the first tentative agreement in exchange for a one-year transition to employee contributions for health insurance.

Following are summary highlights of the new contract:

• Wages. Pay rates will increase by 3 percent retroactive to August 2009, when the previous agreement expired. The contract provides future pay increases of 3 percent in the second year and 2.75 percent in the third contract year. New hires in customer service sales will work on a “60/40 leveraged plan” that provides 60 percent of pay through a fixed salary and 40 percent based on commissions. The commissions could rise to up to 120 percent or triple the current pay. Incumbent employees on the fixed pay plan may choose the leveraged plan on a 6-month trial basis.
• Benefits. The pact maintains the current level of medical, dental and vision insurance, but requires employee contributions for the first time. Unlike the rejected proposed agreement, the new pact provides that employee contributions will be phased in beginning January 2011, when employees will pay $15.00 for single coverage and $30.00 for family coverage. Effective January 2012, the employee contributions will rise to the full rates of $35.00 for single coverage and $75.00 for the family plan. Annual in-network deductibles will rise to $350 (single) and $700 (family), with coinsurance set at 10 percent in-network and 40 percent for out-of-network providers. The plan caps out-of-pocket maximum expenses at $1,000 for individuals and $3,000 for families.
• Other. New hires will be covered by a cash balance pension plan and a 401(k) savings plan instead of the defined benefit pension plan.

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