MERGER!
(NEWS UPDATE: The General Executive Council of the Sheet Metal Workers International Association on June 13 approved the merger of SMWIA with the United Transportation Union. Under the SMWIA constitution, SMWIA membership ratification was not required for this merger. Under the UTU constitution, UTU membership ratification is required, and UTU members will be informed shortly as to how and when the membership ratification process will commence.)

A merger endorsed by the AFL-CIO would bring together the United Transportation Union (UTU) and Sheet Metal Workers International Association (SMWIA) to form the 230,000-member International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART).

The UTU board of directors voted unanimously June 11 to put the merger before the UTU membership for ratification. If ratified, the merger would become effective Jan. 1, 2008. Details of the membership-ratification process have not been finalized, but it is contemplated that ballots will be sent to UTU members by the end of June.

In a joint statement following its vote, the UTU board said, "This is the right merger at the right time. We have examined the merger document carefully, questioned SMWIA officials extensively and discussed the merger and its implications at length. We are of the unanimous opinion that the SMWIA is a good fit for the UTU and we enthusiastically recommend a 'yes' vote by members."

Under the proposed merger agreement, no UTU general committee of adjustment or UTU local or UTU legislative board will be closed as a result of this merger, nor will any UTU general committee or UTU local lose its jurisdiction.

"The proposed SMART merger is a merger designed to boost UTU's strength at the bargaining table, to bolster UTU's strength in fighting off attempts by other organizations and carriers to take our jobs, and to assure the long term financial viability of the UTU and the United Transportation Union Insurance Association (UTUIA)," said International President Paul Thompson.

The UTUIA would remain autonomous within SMART; but, under the merger agreement, would have opened to it a vast new pool of potential policy holders, allowing the UTUIA to expand and remain financially secure.

The proposed merger would create, within SMART, a Transportation Division, whose senior officers would be those elected at the UTU quadrennial convention in August in Hollywood, Fla. The officers would have the same duties of international president, assistant president, general secretary and treasurer, national legislative director, and international vice president as they do under the UTU constitution.

The SMART Transportation Division would include the UTU's air, bus and rail members, and the rail non-op workers now represented by the SMWIA would negotiate in national rail negotiations with SMART's Transportation Division.

The UTU constitution will remain intact and become a part of the SMART constitution. It would take the approval of the SMWIA general president and UTU International president, plus a 75 percent vote of SMART to make subsequent changes to the merger agreement, "effectively giving UTU veto power," Thompson said.

"An immediate benefit of the SMART merger would be access to SMWIA's training facilities and union halls throughout the United States," said UTU Assistant President Rick Marceau. "The SMWIA's 186 training facilities could be used to train local officers without imposing hefty expenses on the locals. The SMWIA's almost 200 union halls, meanwhile, could be used for meetings of UTU locals and UTU for Life chapters."

UTU members also would benefit from the SMWIA's organizing expertise and strength. The SMWIA spends some 40 percent of its receipts on organizing, with 90 local and 30 staff organizers. This organizing structure would assist UTU in organizing shortline railroads, bus properties and airlines.

The combination of the UTU and SMWIA political action committees (PAC) would create the 21st largest (of 4,000) PACs in America and the 7th largest union PAC, increasing the effectiveness of congressional and state legislature lobbying.

Also, the SMWIA strike fund now exceeds $50 million, which SMWIA General President Mike Sullivan says could grow to $100 million. "Currently, the ability of rail employees to strike is limited," Sullivan said. "But politics can change that and we want to be in a position to act effectively against carriers."

"The AFL-CIO fully endorses your merger and wishes you every success in the pursuit of good jobs, retirement security, strong bargaining power, the rebuilding of America's infrastructure and a safe and well-financed transportation system," wrote AFL-CIO President John Sweeney in a letter to Thompson and SMWIA President Mike Sullivan.

"The UTU explored merger opportunities with a number of other unions," Thompson said, "including the International Association of Machinists and Aerospace Workers, the Communications Workers of America, and the Amalgamated Transit Union. Discussions with the SMWIA have been going on for more than a year. The creation of SMART provides the greatest benefit for UTU members, which should become clear from the reading of the merger agreement."

Before the merger takes effect Jan. 1, the top three UTU International officers will become eligible for retirement  -- International President Thompson, Assistant President Rick Marceau and General Secretary and Treasurer Dan Johnson. "There is no benefit from this merger that will accrue to the top three International officers," Thompson said. "Those who will benefit will be UTU members and those who lead the SMART Transportation Division in the future."

Other labor organizations have indicated an interest in joining SMART if the UTU-SMWIA merger creating SMART is ratified by the UTU membership. Those organizations have asked not to be identified at this time.

SMWIA President Mike Sullivan shares a special bond with the UTU, in that he is president of the Eugene V. Debs Foundation. Debs helped to organize one UTU predecessor union (the Brotherhood of Railroad Trainmen) and was an officer of another UTU predecessor (the Brotherhood of Locomotive Firemen and Enginemen).

Most noteworthy is that it was Debs who first advanced the theory of union solidarity, craft autonomy and job protection -- objectives that continue to be the UTU's guiding principles. Debs counseled that when labor embraces the power of solidarity, "it can demand and command."

The UTU was created on Jan. 1, 1969, through the merger of the Brotherhood of Railroad Trainmen, the Brotherhood of Locomotive Firemen and Enginemen, the Switchmen's Union of North America, and the Order of Railway Conductors and Brakemen. Subsequently, the Railroad Yardmasters of America affiliated with the UTU. UTU's bus members trace their history to the BRT. In recent years, commercial aviation employees have chosen to affiliate with the UTU.

The UTU currently has some 80,000 active members; the SMWIA some 150,000 active members. The combined active membership of SMART would restore the numbers the UTU enjoyed when it was created in 1969.

The SMWIA, representing members of the nation's building trades, production workers, and rail and shipyard employees, traces its roots to 1887, with rail shop workers having affiliated with the SMWIA early in the 20th century. SMWIA members proudly stood arm-in-arm with rail operating employees on picket lines during the Great Railroad Strike of 1922.

"The SMWIA is all about representing people and delivering better wages, benefits and working conditions," Sullivan said. "SMART will reflect the community of interest and philosophy that are shared by the UTU and the SMWIA," Sullivan said.

Thompson said, "It is time to put our foot to the gas pedal and move forward for the benefit of our members. This merger promises a better future for our members and their families. There is every reason it should be ratified."

To view a video of President Thompson and SMWIA General President Mike Sullivan speaking on the proposed merger, click here.



UTU International President Paul Thompson (center, right) shakes hands with Sheet Metal Workers International Association President Mike Sullivan following the unanimous vote of the UTU Board of Directors to put a merger, creating SMART, out for UTU membership ratification. Members of the UTU board, from left, are, Kim Thompson, Roy Arnold, Carl Vahldick, Assistant President Rick Marceau, National Legislative Director James Brunkenhoefer, SMWIA President Sullivan, Thompson, General Secretary and Treasurer Dan Johnson, Bruce Wigent, Canadian Legislative Director Tim Secord, and Mike Futhey. Missing from the photo is board member John Armstrong, who was unable to attend the board meeting. 

June 11, 2007

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