Teamsters

Press Contact Galen Munroe [email protected] 202-624-6904

(WASHINGTON) – As Nuveen Investments seeks to refinance $1.1 billion in debt – just barely a year after the firm’s last billion dollar refinancing – the International Brotherhood of Teamsters is urging clients to carefully consider the firm’s suitability as an asset manager in light of its highly leveraged financial condition, as well as its oversight and control by private equity owners Madison Dearborn Partners. Some Teamster-affiliated funds have already moved investments away from Nuveen; others are reviewing their options.

“We are concerned that Nuveen is trapped in a debt service cycle that the company cannot escape,” said C. Thomas Keegel, General Secretary Treasurer of the Teamsters Union, whose affiliated pension and benefit funds have more than $100 billion in assets under management including some with Nuveen subsidiaries. “As part of the leveraged buyout led by Madison Dearborn Partners in 2007, Nuveen borrowed more than $3.1 billion at high interest rates. They have since refinanced that debt several times at even higher rates. We believe that kicking the can down the road will ultimately result in significantly higher fees for clients.”

Nuveen has reported losses nearly every quarter for the past three years. Their strategy of acquiring other asset management firms to restore revenues back to pre-melt down levels has yet to benefit Nuveen’s bottom line.

“We expect financial managers of our members’ retirement assets to be practical, responsible fiduciaries who use good judgment,” said Teamsters International Vice President Rome Aloise, Co-Chair of the Investment Committee for the Western Conference of Teamsters Pension Trust, which together with other union funds, has withdrawn hundreds of millions of dollars invested with Nuveen or Nuveen-owned companies. “How can a company that can’t manage its own finances be trusted to invest wisely for its clients?”

Nuveen’s financial circumstances are no secret. Both Standard & Poor’s and Moody’s Investment Service currently rate Nuveen Investments just one level above “junk” status on their respective ratings scales.

Nuveen’s subsidiaries include: Nuveen Asset Management; Nuveen Hyde Park; NWQ Investment Management; Santa Barbara Asset Management; Symphony Asset Management; Tradewinds Global Investors; Winslow Capital Management, FAF Advisors, and Gresham Investment Management, LLC.

Founded in 1903, the Teamsters Union represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit http://www.teamster.org/ for more information. Follow us on Twitter @TeamsterPower.

Airtran Teamster Mechanics Overwhelmingly Ratify Seniority Integration With SWA Press Contact Galen Munroe [email protected] 202-624-6904

(WASHINGTON) – In a vote tallied yesterday, Teamster Mechanics at AirTran voted 278 to 42 to accept the seniority integration proposal negotiated on their behalf by Teamsters Local 528 in Atlanta, Ga. and the Teamsters Airline Division. However, the Aircraft Mechanics Fraternal Association (AMFA), who would not release their vote count, reported that the mechanics they represent at Southwest Airlines voted down the proposal.

AMFA provided no explanation for failing to release their vote count.

“It is unfortunate that our members at AirTran will now have to wait a while longer in order to gain the benefits of a merged seniority list and an amalgamated collective bargaining agreement,” said Capt. David Bourne, Director of the Teamsters Airline Division.

Founded in 1903, the Teamsters Union represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter @TeamsterPower.

Cape Air Pilots Briefed on First Tentative Agreement

Members of the Cape Air ExCo and Negotiating Committee spent the week crisscrossing their system, meeting with membership to discuss their first Tentative Agreement. “With the structure of our airline, our crews are scattered quite a bit,” said ExCo Chairman Captain Marilyn Rhude. “Consequently, we want to get out in our system and give our pilots the opportunity to sit face to face and have their concerns addressed.”

Turnout has been good according to Rhude, although there were some misconceptions. One of the biggest was status quo. “While we wish it were the case, the “status quo” provisions of the RLA only apply to a group that already has a contract,” said Rhude. “In our case, while the company did not make take and arbitrary actions during our discussions, they did implement some long planned changes that gave the appearance of violating what was believed to be the status quo. While we did not fall under the provision, it nonetheless caused some confusion. We were fortunate enough to have solid support from the Airline Division while we were negotiating and were able to offset those changes,” she continued. “The good thing is that as our pilots begin to do the math, they see that over the life of the contract, they will be better off under the contract rates than under the previous program,” she concluded.

Meetings continue this week with stops in Baltimore and Albany, while part of the team heads out to brief pilots in their most distant base, Guam.

ExpressJet Negotiations Continue

Negotiations resumed on February 15th, with the Federal Mediator. A number of new proposals on four previously agreed to sections of the contract were made by management. The union made counter proposals on Health and Safety, with no agreement yet reached.

Commenting on the new proposals from management, Business Agent Bob Luciano said, “These sections have already been agreed. We will however, in good faith, review them and will respond appropriately.”

“We did make counter proposals on Health and Safety, however, nothing was finalized,” Luciano went on to say. “We are reluctant to say we reached tentative agreement, because the term does not seem meaningful to the company and we feel it’s important to note that the new proposals all involve eroding our current contract and at least one goes to the heart of how overtime is calculated. Nonetheless, our committee is committed to working to obtain the best agreement we can, for our members,” he concluded.

Negotiations resume on March 1st, in Baltimore, when the company will make an updated financial presentation.

Airline Industry News

Governmental and Regulatory

President Barack Obama signed a $63 billion bill into law that will fund the Federal Aviation Administration through 2015. Observers say the funding will speed up progress on a plan to replace the nation's outdated air traffic control system… Southwest can start using AirTran jets in its fleet once it receives federal approval, which is expected to be granted March 1…

Air Canada and its pilots union have agreed to an extended mediation period of six months, averting a strike by the pilots.

Airlines and Industry

The AMR Retirees Pension Protection Corp. has filed a motion for inclusion  on the committee of unsecured creditors for the AMR Corp. bankruptcy…Boeing said there will be room for "new competitors to be successful" in aircraft manufacturing over the next 20 years.

United Airlines and Continental Airlines are moving closer to officially becoming United as the merger of the carriers continues to proceed…A United Nations panel is calling for tougher inspections and detailed labeling of air shipments of lithium batteries following two incidents in which aircraft were destroyed when freight shipments burst into flames.

Durham School Services Drivers Vote to Join Teamsters in California Press Contact Kara Deniz [email protected] 202-624-8142

(WASHINGTON) – The Teamsters’ Drive Up Standards campaign to organize private school bus and transit workers nationwide has reached a major milestone, with 300 organizing wins for more than 32,500 workers since the campaign began in 2006.

“School bus workers nationwide have built a movement with the Teamsters to improve their working conditions, and they are achieving better workplaces with good wages, benefits, safety and respect,” said Jim Hoffa, Teamsters General President. “We look forward to representing these members as we continue to win more organizing victories and raise standards in this industry.”

The milestone was reached with a victory for school bus drivers at Durham School Services in Hayward and Livermore, Calif., who voted overwhelmingly to join Teamsters Local 853 in San Leandro, Calif. The 159 workers united for respect and a voice on the job.

“Every day these hardworking drivers transport our children to school, providing a vital service for our communities. They deserve to be treated with dignity and respect,” said Rome Aloise, President of Teamsters Joint Council 7 and International Vice President. “I welcome them to the Teamster family and look forward to helping them achieve the dignity and respect they deserve.”

“We’re doing this to be able to survive. The money we’re making isn’t paying the bills and we want to be treated like human beings,” said Linda Aguiar, a 25-year driver at Livermore. “I think we really worked hard and have come together. This journey has been a really good thing.”

During their organizing campaign, the workers held a “Speak Out,” a meeting where they brought their concerns about working conditions to the attention of the community. In front of political, religious and other community leaders, the drivers spoke about the struggles they faced and why they chose to form their union. 

“I love working with the kids. I just want to be able to do my job, to have respect and a voice. I’m very happy we’re Teamsters now so we can have those things,” said Maria Lopez, a driver at Hayward. 

Drive Up Standards is a national campaign to improve safety, service and work standards in the private school bus and transit industry. Since the campaign began in 2006, more than 32,500 drivers, monitors, aides, attendants and mechanics have become Teamsters. 

Durham is a subsidiary of National Express Group, a large multinational corporation based in the United Kingdom. Durham is the second largest provider of school bus transportation services in the United States, servicing 11 school districts in northern California. 

Founded in 1903, the Teamsters Union represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter @TeamsterPower.

Teamsters in New York joined forces this week with members of the Sheet Metal Workers and the Laborers unions to leaflet the offices of Parsons Brinckerhoff, a subsidiary of the British construction contractor Balfour Beatty. Balfour Beaty is the largest construction contractor in the UK and also has extensive operations in the U.S. Balfour Beatty was leading an effort in the United Kingdom to undermine the collective bargaining agreement for construction workers there.

The New York rally was held in conjunction with solidarity actions also taking place in the United Kingdom.  Today, February 17, 2012, the company backed down and is now in active negotiations with the unions.

Statement of Ken Wood In Response To Reports That Gov. Scott Will Continue To Pursue Privatization Press Contact Leslie Miller [email protected] 202-409-6647

(TAMPA) — The following is a statement from Ken Wood, Acting President of Teamster Local 2011, which represents 20,000 Florida Department of Corrections officers:

“The Senate reflected the will of the citizens of Florida when it voted to kill prison privatization. Floridians do not want the rules changed so private companies can get secret contracts with no cost-benefit analysis and no public review."