Copyright 2010 -Teamsters Local 17. All Rights Reserved.
A Changing Of Attitudes, Behavior And Strategy
A long time ago labor unions paid little attention to a company's bottom line unless it was so healthy that it would enter into contract negotiations. Today is different. During these economic times in order to protect union jobs, the IBT and Local 17 has had to make sure that those companies that provide your jobs are going to stay in business.
The IBT and Local 17 had to change course and take an affirmative role in securing your futures by helping to secure those companies' futures. This was especially true with the near collapse of YRCW, because of the economic down turn in the economy.
When YRC started having financial difficulties, the IBT and Local 17 got involved without an invitation from the company. It was decided that the Teamsters could not just sit back and not try and save 30,000 Teamster jobs. With YRC's ever mounting debt and suspect leadership, the IBT and Local 17 did not sit on the sidelines and watch the company fail.
The Teamsters National Master Freight Negotiating Committee (which I am a member of) met and we all knew that difficult decisions were going to have to be made that involved pension contributions and wage reductions. We also made it perfectly clear to YRCW management that before there was any assistance from the Teamsters that management must show that they were going to sacrifice as much or more than the Teamster members they employ. We made it very clear that our only goal was to protect Teamster member's jobs at YRCW.
After all this negotiating and doing everything in our power to secure your future at YRC over the past year, the last step was the bond holders cooperating with this Teamster-YRCW plan to save 30,000 Teamster Jobs. We didn't have to look far to see the Teamster's affect on our members future at YRC.
We found bondholders who were directly accountable in pushing for the collapse of YRC, as there was money to be made by a bankruptcy filing by YRC. "POOF". No more 30,000 Teamster jobs.
When General President James P. Hoffa found out about these actions by some bondholders he put pressure on them to accept the exchange that eliminated hundreds of millions in debt or be exposed to the American Public of, who they were and what they were doing.
In the weeks leading up to bond holder swap the Teamsters found out that credit default swaps would pay bond holders more if YRC went bankrupt. Good for Wall Street, bad for you.
The company had built up through a series of misguidedly overpriced takeovers in the years of the credit bubble, had hit a financial wall thanks to the fall off of business in the recession. Unless investors holding the company's bonds could be persuaded to swap their debt for equity, the company would go bankrupt and 30,000 Teamster members thrown out on the street.
The Teamsters got word that Goldman Sachs was behind several hedge funds that were dealing in credit default swaps that were expressly directed at taking down YRC. With direct pressure from Teamsters General President James P. Hoffa (who was prepared to name names) not only did Goldman Sachs fold on the hedge funds policy, but offered it's help to convince other bond holders to participate in the exchange that would save YRC at the end of 2009. The exchange was successful and now the Teamsters have seats on a new board at YRC that will direct its future.
We know that there is a lot of work still left to do at YRC and other Companies with member of the Teamsters Union. Local 17 will be there for all our members at YRCW, ABF, ACME, UPS (Package, Freight and CSI) and the 950 members working for the City and County of Denver, as we all recover from the worst recession since the Great Depression.
I am convinced that Local 17 has the greatest members. This is based on how we have received the support from you on which direction the Local is going. Now Local 17 is poised to be the leader in regaining all jobs when the economy starts its recovery.
In 2010 and beyond the IBT and Local 17 will fight for our member's jobs in different ways. We organize protests at investment firms that will take your job just for their good. We continue to be actively involved in the politics that are necessary in today's world in order to make sure the politicians know that they must take care of Labor.
As true Teamsters and proud members of Local 17, the full time agents and officers took a pay cut just like the members at YRC did. Solidarity is alive and well at Local 17.
When someone says to you "There is no need for Unions anymore" have them read this and be proud to be a Teamster.
Until next month,
Mike.
