JULY 2010 Scranton/Wilkes-Barre/Hazleton edition of The Union News

Robert Casey’s legislation would help keep workers’ pensions solvent

BY PAUL TUCKER
THEUNIONNEWSSWB@AOL.COM

REGION, June 17th- The Americans for Limited Government (ALG), a conservative political organization in Fairfax, Virginia, is critizing United States Senator Robert Casey’s (Democrat-Pennsylvania) Pension bailout legislation and is urging the Senate Health, Education, Labor and Pensions Committee to reject it.

The United States Congress is considering legislation that would help the multi-employer pension system remain solvent.

Mr. Casey’s bill titled, “Create Jobs and Save Benefits Act of 2010,” could result in taxpayer money being used to help workers pensions remain solvent.

Most of these pensions are held in what are known as multi-employer pension funds. Created in 1974 as part of the Employee Retirement Income Security Act, these funds are an agreement between a union and two or more employers to fund the pension of workers and retirees. It has been estimated the pension fund could be approximately $165 million in debt.

The rub is that many of the participating company’s have gone out of business but their employees remain in the system, and become the remaining company’s responsibility. As these multi-employer pension plans become more and more insolvent, the unions are faced with members pensions shortfalls.

The ALG, their media allies, and other conservative groups are suggesting the legislation is nothing but a bailout of union members pensions.

If the pension problem is not rectified the shortfall could result in cutting benefits, raising the retirement age, asking retired members to contribute to the fund or force unions to use dues money

JULY 2010 Scranton/Wilkes-Barre/Hazleton edition of The Union News

MSA unemployment rate remains the highest in Pennsylvania

BY PAUL LEESON
THEUNIONNEWSSWB@AOL.COM

REGION, June 30th- According to labor data provided by the Pennsylvania Department of Labor and Industry, the region’s seasonally adjusted unemployment rate is 10.3 percent, increasing by three-tenths of a percentage point from the previous report, which was released approximately four weeks before. The Scranton/Wilkes-Barre/Hazleton Metropolitan Statistical Area (MSA) includes Lackawanna, Luzerne and Wyoming Counties. Twelve months ago the unemployment rate for the region was 8.5 percent. The unemployment rate is the highest for the region since September 1992 when it reached 10.5 percent.

The unemployment rate in Pennsylvania is 9.1 percent, rising by one-tenth of a percentage point from the previous report. Pennsylvania has a seasonally adjusted civilian labor force of 6,463,000 with 591,000 not working and 5,872,000 with employment. The national unemployment rate is 9.7 percent.

There are 14,973,000 civilians in the nation reported to be unemployed.

That number does not include civilians that have exhausted their unemployment benefits and have stopped looking for work. There are at least 22,000,000 civilians in the nation without jobs. Approximately 200,000 civilians in the nation are exhausting their unemployment benefits every week and will not be counted in the national unemployment rate.

The Scranton/Wilkes-Barre/Hazleton MSA has the fourth largest labor force in Pennsylvania with 286,200 civilians. The Philadelphia MSA has the largest labor force at 2,995,300 with 279,900 not working; the Pittsburgh MSA has the second largest labor force at 1,229,800 with 105,700 without jobs; the Allentown/Bethlehem/Easton MSA has the third largest labor force at 425,400 with 41,900 not working; and the Harrisburg/Carlisle MSA has the fifth largest civilian labor force at 286,200 with 24,300 without employment.

Of the 14 MSA’s within Pennsylvania, the Scranton/Wilkes-Barre/Hazleton MSA is tied with the Johnstown MSA for the highest unemployment rate. The Erie MSA has the second highest unemployment rate in Pennsylvania at 10.0 percent, with the Allentown/Bethlhem/Easton MSA and the Reading MSA tied with the third highest at 9.9 percent.

There are 29,400 residents reported to be not working in the MSA, increasing by 800 from the previous report and rising by 5,100 from twelve months before. That number also does not include civilians who unemployment benefits have expired and stopped looking for work.

The State College MSA has the lowest unemployment rate in Pennsylvania at 6.7 percent. The Lebanon MSA has the second lowest unemployment rate in the state at 7.9 percent, the Altoona MSA and the Lancaster MSA are tied for the third lowest rate at 8.0.

Wyoming County has the lowest unemployment rate in the MSA at 9.5 percent, decreasing by two-tenths of a percentage point from the previous report and increasing by nine-tenths of a percentage points from one year ago. Wyoming County has a labor force of 14,500, decreasing by 300 civilians from the previous report and dropping by 100 from one year ago. There are 1,400 Wyoming County residents without jobs, unchanged from the previous report and increasing by 100 from twelve months ago.

Luzerne County has the highest unemployment rate in the MSA at 10.6 percent, increasing by two-tenths of a percentage point from the previous report and increasing by one and seven-tenths of a percentage point from twelve months ago. Luzerne County has a labor force of 162,900, decreasing by 200 from the previous report and increasing by 900 during the past twelve months. Of the labor force 17,300 do not have a job, increasing by 400 during the past four weeks and rising by 3,000 during the past twelve months.

Lackawanna County has a unemployment rate of 9.9 percent, increasing four-tenths of a percentage point from the previous report and jumping by one and nine-tenths of a percentage point from one year ago. Lackawanna County has a labor force of 108,900, unchanged from the previous report and rising by 700 during the past twelve months. There are 10,800 Lackawanna County residents without jobs, rising by 500 from the previous report and increasing by 2,100 during the past twelve months.

The Scranton/Wilkes-Barre MSA seasonally adjusted total nonfarm jobs increased 600 to 254,000 since the last report. Since May 2009 the area has lost 600 jobs.

JULY 2010 Scranton/Wilkes-Barre/Hazleton edition of The Union News

Labor complaints against Postal Service accumulating

BY PAUL TUCKER
THEUNIONNEWSSWB@AOL.COM

REGION, July 1st- The newspaper discovered labor complaints filed by labor organizations that represent workers employed by the United States Postal Service (USPS) are beginning to accumulate against the mail delivery service.

A review by the newspaper of Unfair Labor Practice (ULP) charges filed at the National Labor Relations Board (NLRB) Region Four office in Philadelphia shows multible complaints have been filed by several labor organizations from throughout Northeastern Pennsylvania alleging the USPS has violated the National Labor Relations Act (NLRAct).

The newspaper reported in the February edition the National Association of Letter Carriers (NALC) Branch 17 in Scranton, filed a complaint with the NLRB on February 3rd, 2010 alleging the USPS violated the NLRAct by delaying the bidding process which has resulted in a senior carrier floating. Branch 17 represents approximately 110 workers employed by the United States Postal Service at their facility in Stafford Avenue in Scranton. NALC represents workers that deliver mail to both residential and business customers. Branch 17 represents postal employees throughout the Scranton area.

The complaint was filed on behalf of the Union by Thomas Gavin, indentified on the complaint as President of Branch 17.

The American Postal Workers Union (APWU) Local 175, in Wilkes-Barre filed a complaint against the USPS in Wilkes-Barre alleging the employer violated the NLRAct.

The union filed the complaint against the USPS on May 24th, 2010 alleging the employer violated Section 8 (a), subsections (1)(3) and (5) of the NLRAct.

The ULP’s were discovered during the montly review by the newspaper of complaints and petitions filed at the NLRB office. The newspaper is the only member of the local media that reviews and publishes the information.

Local 175 alleges the USPS has renege on an agreement to extend the time limit for processing grievances.

“On or about February 12th, 2010, the above named Employer, unilaterally and without bargaining with the Union, restricted Local 175 President John Kishel from engaging in Union/Steward activities during work hours, and therefore began prohibiting John Kishel from engaging in the above activities during the work day at any time after 12:30 p.m.,” states the complaint.

Local 175 represents postal clerks and maintenance workers for the USPS at their Albrightsville, Andreas, Berwick, Bloomsburg, Canadensis, Conyingham, Dallas, Drums, Falls, Glen Lyon, Harveys Lake, Hazleton, Hunlock Creek, Hunting Mills, Jim Thorpe, Kingston, Lehighton, Nanticoke, Nescopeck, Plymouth, Shickshinny, Tresckow, Tuckhannock, and Wilkes-Barre facilities.

Mr. Kishel was active in 2009 is attempting to persuade the USPS not to close the mail processing center on South Main Street in Wilkes-Barre and move the work to Scranton and the Lehigh Valley. The USPS earlier this year did move most of the work and jobs to Scranton and to Bethlehem Township. The USPS stated the move was in response to the 30 percent decline in first class mail over the past decade. Mail volume has dropped to 1964 levels.

Approximately 50 percent of Local 175 members have been reassigned to Scranton and the Lehigh Valley and now must travel to those locations to continue working for the USPS.

JULY 2010 Scranton/Wilkes-Barre/Hazleton edition of The Union News

Cinram Manufacturing plans to layoff senior employees first

BY PAUL TUCKER
THEUNIONNEWSSWB@AOL.COM

REGION, June 28th- The newspaper has learned Cinram Manufacturing in Olyphant, formerly called Speciality Records, intends to layoff senior employees later this summer before cutting workers that were hire more recently.

Cinram Manufacturing recently announced and the mainstream media reported the company will layoff 155 employees but the report company officials filed with the Department of Labor indicates more than 600 will lose their jobs by the end of 2010.

Cinram Manufacturing is Lackawanna County’s largest manufacturer. In February it was announced the company lost the Warner Home Video manufacturing contract. Warner Home Video will terminate its production contract with Cinram on July 31st. The contract with Warner Home Video represented approximately 28 percent of Cinram’s revenue.

The company operates a 1 million square foot plant in the Mid-Valley Industrial Park, which once manufactured vinyl records and employing several thousand workers.

Cinram employees are not represented by a labor organization, therefore the employer will not need to negotiate what is called, “layoff effects bargaining” and can layoff the most senior workers first and save money by eliminating the employees with accrued vacation weeks.

The average wage of the employees to be laidoff is between $15.00 to $20.00 per hour.

The newspaper is aware of two organizing campaigns at the plant that was conducted by several unions during the past several decades.

According to information provided to the Department of Labor (DOL) by Cinram officials, and obtained by the newspaper, the company will layoff several times in 2010. The first layoff will occur on August 2nd and a second layoff will be held between December 7th and 21st.

The layoffs will effect packaging and assembly operators, offset print operators, and electro-mechanical technicians. The average longevity of the laidoff workers will be at least 18 years.

The company stated it planned to layoff around 600 of the 1,000 workers at the plant. No part-time workers will be effected by the layoff.

Cinram filed with the Department of Labor about the layoffs on April 23rd, and the mainstream media failed to report the actual number of employees to be terminated.

JULY 2010 Scranton/Wilkes-Barre/Hazleton edition of The Union News

Scranton Unions contract dispute heading to Supreme Court

BY PAUL TUCKER
THEUNIONNEWSSWB@AOL.COM

REGION, June 27th- The Pennsylvania Supreme Court has agreed to hear arguments regarding Scranton Mayor Chris Doherty’s implementation of the Pennsylvania Financially Distressed Act, (Act 47) on the public safety unions.

On June 1st, 2010, the Supreme Court of Pennsylvania issued the order that the petition for allowance of appeal is granted with respect to whether Section 252 of Act 47 applies to Act 111 interest arbitration awards.

According to David Schreiber, President of the International Association of Fire Fighters (IAFF) Union Local 60 in Scranton, which represents 137 members of the Scranton Fire Department, the high court will hear arguments about whether a recovery plan promulgated interest arbitration awards under Act 111, which governs fire and police collective bargaining rights, supercedes Act 47. Under Act 111, public safety unions are forbidden to strike during contract disputes, rather raises can be granted through arbitration.

Local 60 and the Fraternal Order of Police (FOP) Union Lodge #2, which represents the Scranton Police Department, have been unable to negotiate for new contracts since Mr. Doherty became the mayor in 2002. The previous contracts expired in December 2002.

Arbitration awards granted raises to the public safety unions members but the city won the right to vacate the awards arguing they violated Mr. Doherty’s recovery plan under Act 47. The unions appealed to the Pennsylvania Commonwealth Court in 2009 and the Court affirmed a modified version of the decision. The Supreme Court will determine if Commonwealth Court erred in determining that the City remains distressed under Act 47 and that the recovery plan remains in effect and whether the court erred in failing to remand the matter to the Act 111 board of arbitration instead of modifying the interest arbitration award itself.

Mr. Schreiber spoke to the newspaper exclusively because of his untrust of the Scranton Times-Tribune reporters and editorial writers regarding stories published in the daily newspaper in the past. “Frankly, they write what they want. What you say has nothing to do with what they print,” Mr. Schreiber stated.

There was 240 firefighters in the Scranton Fire Department 20 years ago and under the previous contract negotiated between former Scranton Mayor James Connors and the union there was 150. However, under Mr. Doherty’s recovery plan, there is no limit to how many firefighters will be employed by Scranton.

The current contract has no expiration date and is loaded with management rights clauses. Under Mr. Doherty’s recovery plan, most rights normal to union contracts are excluded. Under the contract the employer can change working conditions at will at any time.

Mr. Schreiber stated that the Doherty Administration has violated their own recovery plan by increasing spending. “While the fire department’s budget has decreased since he has been mayor, the city budget has increased. We now have fewer people in the fire department than ever, so the city budget problems should not be blamed on us, ” he added.

Mr. Schreiber told the newspaper both sides need to submit their written legal briefs on July 14th. He is hopeful the Pennsylvania Supreme Court will hear the case in late summer or early fall.

The union wanted to negotiate a contract agreement with the Doherty Administration however, the city would not consider any contract language that did not include removing most work protections and replaced them with management rights clauses.

JULY 2010 Scranton/Wilkes-Barre/Hazleton edition of The Union News

Nurses Union to hold labor rally in Wilkes-Barre

BY PAUL TUCKER
THEUNIONNEWSSWB@AOL.COM

REGION, June 28th- The Pennsylvania Association of Staff Nurses and Professionals (PASNAP) Union will hold a rally on July 17th to protest the lack of success in gaining a successor contract agreement with the operators of the Wilkes-Barre General Hospital on North River Street in Wilkes-Barre.

PASNAP, Conshohocken Pennsylvania, represents approximately 440 nurses employed at the medical center. The Union also represents nurses employed at the Community Medical Center (CMC) on Mulberry Street in Scranton.

PASNAP and Community Health Systems (CHS) Inc., which operates the medical center, and the union have been negotiating for more than thirteen months attempting to gain a successor contract agreement. The previous pact expired on August 30th, 2009. The two sides agreed to work under the terms and conditions of the previous contract while negotiations continue for a new pact.

The Tennessee based CHS Inc. is the largest owner of for-profit hospitals in the United States and also operates a facility in Pottsville.

The newspaper has learned the rally will begin at the Waterfront at 11am and the protesters will picket the hosptial between 12 and 1 pm. A solidarity picnic at the River Grill/Waterfront will be held following the picketing. Union members are requested to attend to show solidarity for the nurses.

In the previous edition of the newspaper it was reported PASNAP filed a second complaint with the National Labor Relations Board (NLRB) Region Four in Philadelphia alleging the operators of the medical center violated the National Labor Relations Act (NLRAct).

The union filed a Unfair Labor Practice (ULP) charge on March 11, 2010 alleging CHS Inc. is negotiating in bad faith and violated the NLRAct. On May 14th, the union filed another ULP charge alleging the Employer has withdrawn its agreement to specific bargaining proposals and has done so because of ULP’s filed by the Union.