As reported in last month’s JOURNAL, the BMWE Merger/Affiliation Committee — appointed in early 1999 by President Mac A. Fleming in accordance with 1998 Grand Lodge Convention Resolutions 29 and 50 and a Grand Lodge Officers resolution passed in February 1999 — recommended in a report submitted to the Grand Lodge Officers on June 7 that the Officers approve a merger with the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers.

On June 25, following a week of meetings by an Officers sub-committee working through a list of concerns, the Grand Lodge Officers voted to submit a proposed merger with the Boilermakers to the BMWE membership for ratification. The IBB Executive Council unanimously decided to approve the proposed merger with the BMWE on June 23, 2001.

"We believe that combining the talents, assets and strengths of the BMWE and Boilermakers," said BMWE President Mac A. Fleming in a June 25 press release, "will allow us to grow our membership and will provide the tools, structure and resources necessary to improve and enhance representation of our membership at the highest level. We look forward to the ratification process and strongly believe that the membership of the BMWE will analyze the details of the proposed merger, see that it makes sense, and make the correct decision as we face, in unity, the challenges of the 21^st Century."

Boilermakers President Charles W. Jones said, "we believe this merger will ensure that the proud histories of our unions will continue and will aid in achieving the long desired consolidation of Rail Labor’s collective bargaining and political leverage. This merger makes absolute sense for both organizations ..."

The BMWE is at an historic crossroad. Each member in good standing will soon receive a ratification ballot for a vote to determine whether or not BMWE will merge with the Boilermakers. This vote will determine the future of the BMWE and will impact every member in the days and years ahead.

The duration and intensity of the negotiations for almost two years, as well as the extensive internal review and analysis of the Boilermakers and other potential merger partners, reflects that BMWE leadership has taken the issue of merger, and its potential to positively impact members, very seriously. The Merger Committee and the Grand Lodge Officers worked diligently to ensure that a complete and comprehensive proposal was developed for members’ consideration and ratification.

This edition of the JOURNAL is dedicated to providing members with the information they will need to make an intelligent and informed decision regarding the proposed BMWE/Boilermakers merger. The proposed merger agreement, the 22 side letters, and several attachments are being printed in full. In addition, while this article gives a brief overview, another article presents answers to the important questions that have been asked, the President’s Perspective and Secretary-Treasurer’s Overview discuss the "big picture," another article describes more in detail "what’s in it for members," and finally, another article briefly answers the question, "who are the Boilermakers?" Additional information about the Boilermakers and a more detailed history on how this merger proposal came about were also printed in the June/July 2001 issue of the JOURNAL.

If ratified, the merged organization would represent a combined skilled trades membership of almost 150,000 members in the United States and Canada, with the majority of its members’ work concentrated in the following six industrial sectors: Railroading, Construction, Manufacturing, Shipbuilding/Repair, Cement and Stove/Metal.

The BMWE Division of the Boilermakers would retain its own name, autonomy and structure within the merged organization and be headed by an International Executive Vice President. The name of the merged organization will be amended to include a specific reference to railroad workers in recognition of the large contingent of rail members. The BMWE Division, with the full support and resources of the merged organization, will continue collective bargaining, arbitration, legislative, safety, legal, organizing, research, strategic planning and other activities designed to promote and protect the interests of the BMWE Division membership.

The merger proposal provides BMWE with a genuine means to reduce the overall cost of operating the union, while simultaneously improving services to the dues paying membership. The financial assets and size of the merged organization will allow the elimination of wasteful duplication of services and reduce the pressure for large dues increases in the future. It also is structured to funnel more dues dollars back to the system divisions and federations for their use in servicing the membership at the system and local level. The merger will also provide increased strike benefit payments for BMWE members, including, for the first time, strike benefit eligibility for Canadian members.

Also of significance is that fact that the BMWE Division officers, employees, staff and retirees will be covered by the Boilermakers Health and Welfare Plan. This change in health and welfare plans will save approximately $600,000.00 per year in Grand Lodge health care costs alone. Additionally, BMWE system divisions and federations will also be covered by this plan, reducing health and welfare costs at the system level approximately 75% when compared to what is currently paid today. The health benefits received by those under the plan would be comparable to those enjoyed by them now according to experts retained by BMWE. Grand Lodge will further reduce annual overhead costs by approximately $300,000.00 by consolidating offices into the Boilermakers’ building in Kansas City.

These savings will equate to better services, stabilization of dues rates, and reduced cost for BMWE members.

As part of the merger agreement, the Boilermakers have committed to aggressively explore, as a priority of the merged organization, the potential for bringing the combined railroad membership under a Boilermakers’ Health and Welfare Plan. BMWE’s goal would be to reduce or even eliminate the cost sharing component of the recently ratified National Agreement, potentially putting more of the National Agreement’s wage increases back into members’ pockets while providing as good or better health care benefits.

Another substantial commitment made to BMWE by the Boilermakers relates to the Boilermakers National Pension Trust, a $6 billion dollar pension fund enjoyed by the vast majority of Boilermaker members, which includes up to 15 years past service credit (worth $112.50 per month) as set forth in the plan. The Boilermakers have committed to make negotiation of the National Pension Trust for the combined railroad membership a priority, inclusive of the 15 years past service credit. In fact, the Boilermakers have successfully negotiated the National Pension Trust for its railroad members employed on Metra Commuter Railroad and they are currently in negotiations with other railroads for the same purpose. The merged organization is committed to attempting to negotiate this pension with the railroads for BMWE members as part of the total economic package.

The merger provides the BMWE with increased tools, resources, structure, and collective bargaining clout to try to make these benefits a reality. This merger will therefore enhance the prospects of securing an additional membership pension to supplement Railroad Retirement, and the prospects for reducing or eliminating members’ health care cost sharing; obtaining either or both is less likely without the merger.

In addition, this financial strength means the newly merged organization will provide Grand Lodge Officers and staff with improved pension benefits in addition to railroad retirement and authorizes the system divisions and federations to provide pension benefits to their officers and staff while reducing the amount that dues would rise if the merger did not occur.

The merger will also immediately double the BMWE’s legislative presence in Washington, DC and increase the number of full-time trained organizers available to the BMWE from the current two to 15 full-time organizers within the merged organization.

In addition, the members of BMWE will be serviced by a merged organization with operational assets of over $90 million dollars. Also, in support of the activities and objectives of the merged organization and its divisions, the Boilermakers have substantial financial assets, including a National Annuity Trust with assets over $500 million dollars, ownership of the Brotherhood Bank and Trust with assets over $350 million dollars, and the Boilermakers National Pension Trust with assets of over $6 billion dollars. This type of financial clout, coupled with the enhanced collective bargaining and political clout that a 150,000 member union brings to the table, will position the BMWE well to make these possibilities a reality for BMWE members and their families.

"Is this a perfect merger? Of course not, but few things in this world are ever perfect, including mergers," said President Fleming. "However, this merger proposal does represent a true merger of equals which preserves our autonomy and provides mutual benefits for the membership of both organizations. Our unions share a common history, community of interest, and trade union philosophy, and we surely will be stronger united than divided. We believe that combining the talent, assets, and strengths of the BMWE and the International Brotherhood of Boilermakers will provide us with the tools necessary to improve and enhance representation of our membership at the highest level. We believe this merger will ensure the proud history of our unions will continue, will aid in the consolidation of Rail Labor’s collective bargaining and political leverage, and will enhance the merged organization’s ability to represent our respective rail membership in contract negotiations and other related areas. Thus, we have every reason to believe this merger will provide tangible benefits for our members and their families, both now and in the future."

BMWE leadership has done all that they could, with the proper checks and balances in place, to present to members what they believe is a merger proposal that will be good for all the members of the merged organization and good for Rail Labor as a whole. They ask that every member retain this edition of the JOURNAL for future reference as the merger agreement and related documents are printed herein in their entirety. Every member is being urged to read and review all the merger related materials in this JOURNAL and make up their own mind. A summary overview of the merger proposal is also being prepared and will be sent to every member in good standing along with his ballot in the very near future.

It is now up to the BMWE membership, to discuss, deliberate, and vote upon this issue of merger with the Boilermakers. Soon, in the last and most important step of BMWE’s democratic process, BMWE members will have the opportunity to exercise their freedom of choice as trade unionists by casting their ballots. Upon completion of this vital and final step, the wishes of the majority of voting members will decide whether or not this merger between BMWE and Boilermakers will occur.