On June 7 and 8 BMWE Grand Lodge Officers met
in Kansas City, Missouri, the home city of the International Brotherhood
of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers, to
consider the report of the BMWE Merger/Affiliation Committee appointed in
early 1999 by President Mac A. Fleming. The Merger/Affiliation Committee
recommended that the Grand Lodge Officers approve the merger with the IBB.
The Grand Lodge Officers passed a resolution on June 8 that they
"move forward with the Merger Committee’s recommendations and that
President Fleming appoint a committee consisting of at least two Canadian
Grand Lodge Officers and as many United States Grand Lodge Officers as he
deems appropriate to review the concerns made by the majority of the Grand
Lodge Officers. Upon finishing their review of the Grand Lodge Officers’
concerns and merger documents, the committee will report back to all Grand
Lodge Officers for a vote before submitting the merger proposal to the
membership for a ratification vote."
As this JOURNAL went to print the Grand Lodge Officers sub-committee
was scheduled to convene the entire week of June 18 in Kansas City to work
through the list of concerns identified by the Grand Lodge Officers.
Should the merger with IBB thereafter be approved by the Grand Lodge
Officers, BMWE would take such steps as determined necessary by the Grand
Lodge Officers to educate members as to the features and advantages of the
proposed merger. Such an educational process would likely utilize a
combination of regional meetings, the BMWE JOURNAL and other effective
means of communications. The issue of a merger with the IBB would then be
put before the membership for ratification through referendum ballot in
accordance with Article I, Section 1 of the BMWE Grand Lodge Constitution
and Bylaws.
"Should Rail Unions Merge?" was the title of the
award-winning editorial by President Fleming first published in the
September 1995 issue of the BMWE JOURNAL and again in the December 1996
issue. At the beginning of the article, President Fleming asked a number
of questions:
"Does the current craft structure — 11 unions in one industry,
some of which are struggling financially — continue to make sense, if it
ever did? Can an industry whose numbers have shrunk by more than 50% in
the past 15 years and which is currently in its own round of merger mania
continue to support 11 different union bureaucracies? Will a government
that is not particularly friendly to labor be willing to guarantee our
memberships the level of protection we need to survive when one or more
rail unions undercuts other rail unions in the mistaken belief that it can
obtain better results from the government for its members of other rail
unions? Similarly, can one union outperform another when all have
different bargaining strategies? Does any of this make sense?"
At the conclusion of the article, President Fleming said: "The
great rail labor leader Eugene Debs was right 100 years ago when he called
for one railroad union for all railroad workers. He is even more right in
1995. The winds of change are blowing throughout the labor movement.
Leadership is changing and unions are merging in order to strengthen their
bargaining and political strength. Let’s not bury our heads in the sand.
Yes, let’s move the merger process forward within rail labor."
Delegates to the 1998 Grand Lodge Convention soundly agreed as
evidenced by the unanimous adoption of Resolution 29, the final resolve of
which states:
"RESOLVED, that we, the delegates of the 43rd Grand
Lodge Convention, go on record to request that the Grand Lodge
President explore all avenues consistent with the Constitution and
Bylaws, the feasibility of affiliation, etc. with all other rail
and/or non-rail unions."
The delegates passed Resolution 29 in recognition of the BMWE’s
diminished collective bargaining and political power caused by declining
membership, industry downsizing, limited organizing opportunities, and the
financial realities of providing strong union representation in the face
of declining membership and increasing costs.
As a result of a motion adopted by the Grand Lodge Officers in February
1999 to move forward to implement Resolution 29, President Fleming
appointed a BMWE Merger/Affiliation Committee, comprised of six general
chairmen, one from each of the five U.S. regions and one from Canada. The
Committee was given the responsibility to review and explore the
feasibility and benefits of merger and/or affiliation with a number of
rail and non-rail unions, and to report their findings and recommendations
to the Grand Lodge Officers. President Fleming also appointed six advisors
to the Committee, including one general chairman/Grand Lodge executive
board member, two additional Grand Lodge officers (one U.S. and one
Canadian), and three Grand Lodge appointees.
Over the past two years, the BMWE Merger/Affiliation Committee, with
the approval of the Grand Lodge Officers, met with the Brotherhood of
Locomotive Engineers (BLE), Brotherhood of Railway Signalmen (BRS), International
Association of Machinists (IAM), International Brotherhood of Boilermakers
(IBB) and the Transport Workers Union of America (TWU).
BMWE’s goal in these merger/affiliation discussions was to identify
merger partners whose organizational and collective bargaining philosophy
was consistent with BMWE’s, where the potential merger partner’s
financial condition would enhance rather than burden the BMWE’s
financial condition and assets, and where the merger partner’s political
and legislative influence would enhance BMWE’s political, legislative,
and collective bargaining leverage.
The Committee met with all of the above-named unions at least once, and
in several cases multiple times, to identify which organizations expressed
a genuine interest and offered mutual benefits consistent with the stated goals of BMWE and
for the mutual benefit of each organization’s respective membership.
Some organizations made it clear to the BMWE Merger/Affiliation
Committee that, while they may be willing to consider a loose affiliation
with BMWE, they were not in a position, or did not possess the will, to
effectuate a merger with BMWE. After several Committee meetings with these
potential merger partners, the Committee determined that further
discussions with BLE/ATDD, BRS, IAM and TWU were unlikely to progress
beyond the initial exploratory stage. Based upon this determination,
further discussions with these organizations were respectfully
discontinued.
One organization that continued to express a genuine interest in
furthering merger discussions with BMWE was the IBB. The Committee
recognized IBB as a suitable merger prospect which offers mutual benefits
and possesses the desired attributes of a potential merger partner.
The BMWE Committee and the IBB Committee met on numerous occasions over
a period of approximately 22 months, in multi-day sessions, to discuss the
feasibility and desirability of effectuating a merger between BMWE and
IBB. Clarified at the first meeting was the mutual desire of both
organizations to approach the discussions from a perspective of a merger
of equals. It was from this perspective that both parties approached
discussions in all subsequent meetings.
IBB is a skilled craft union which represents members concentrated in
the following six industrial sectors: Manufacturing, Stove/Metal,
Shipbuilding/Repair, Railroad, Cement, and Construction. The current total
U.S. and Canadian membership of IBB is approximately 96,000. IBB is
headquartered in Kansas City, Kansas where they own an 80,000 square foot
office building and a substantial amount of property in the immediate
vicinity. In several other states and provinces the IBB owns or maintains
satellite offices.
IBB currently has 12 staff employees in Kansas City and 64 staff in the
field. They operate an organizing department consisting of 13 organizers
and maintain an education department which provides education and
trade-skills training to the membership. This includes IBB operation of an
apprenticeship and journeyman training facility in Kansas City. IBB also
maintains at their Kansas City headquarters a research and collective
bargaining services department and they also administer their own pension
and health and welfare benefits from their headquarters.
In addition, IBB maintains a substantial PAC fund and retains a fully
staffed and experienced legislative department in Washington, DC. Further,
IBB maintains a publications department for production of the IBB journal,
The Boilermaker Reporter, and an Internet web-site www.boilermakers.org.
IBB also maintains a legal defense fund for the payment of strike and
lock-out benefits and for the payment of legal fees and other legal
expenses incurred.
The BMWE Merger/Affiliation Committee, after careful review and
thorough investigation of the benefits to BMWE, and in equal consideration
of all potential merger/affiliation prospects, identifying no apparent
downside to a merger with the IBB, prepared a report and recommendations
in support of a merger with the IBB which they submitted to the Grand
Lodge Officers at the end of May for their review, input, evaluation, and
action.
The Committee noted that should the BMWE merge with IBB, the BMWE
Division would immediately become the largest division within the IBB
organization and, therefore, would have a substantial voice within the
merged organization, including two seats on the IBB Executive Council. The
Committee has determined IBB to be a financially sound and well
administered organization which shares with BMWE a common background and
trade union philosophy. The BMWE Division would preserve its own name and
identity within the merged organization. The merger agreement would also
preserve the structure, autonomy, and bylaws of the BMWE system divisions
and federations in the U.S. and Canada.
The Committee also noted that the combined membership of a BMWE/IBB
merger would be approximately 142,000 members strong, adding to the merged
organization's collective bargaining power and political clout for the
benefit of the membership. The combined BMWE and IBB membership would be
serviced by a merged organization with operational assets in excess of $90
million dollars. During periods of unemployment, BMWE members would become
eligible to work in the IBB’s Construction Division and for other IBB
employers where work opportunities exist.
The Committee anticipated that combining the talent, assets, and
strengths of the Brotherhood of Maintenance of Way Employes and the
International Brotherhood of Boilermakers would provide the tools
necessary to improve and enhance representation of the BMWE membership at
the highest level. |