An obvious question each and every member must naturally ask before casting their ballot is, "what’s in it for me?" This is a fair and logical question that must be answered in a fair and factual way. After all, this merger is about the membership. Members are the union and union officers work for the members.

Along with the other articles in this JOURNAL, this article is intended to provide you with some of the answers to the appropriate question, "What’s in it for the members?"

One of the most immediate and long-term effects of the proposed merger is the financial stability it will bring to BMWE. The Boilermakers Constitution has a dues formula that is less than the BMWE’s current formula, so BMWE Division dues within the merged organization will not increase as fast or as high as they otherwise would if we choose not to merge.

In addition, under the terms of the Merger Agreement, each system division and federation will receive back $1.00 per member per month in International dues (i.e., Grand Lodge dues) to support the systems’ representation of the membership. This will have the effect of stabilizing system division and federation dues and reducing pressure for future system dues increases.

The Merger Agreement also provides that BMWE Grand Lodge dues (per capita dues) will not be increased in 2001. Thereafter, per capita dues (Grand Lodge dues) will be limited to annual adjustments, if any, based upon Bureau of Labor Statistics data as provided under the Boilermakers Constitution, with 50% of any overall annual adjustment being remitted to BMWE system divisions and federations for their use at the system and/or local level. This flow of dues dollars back to the system level will further stabilize membership dues, reduce pressure for substantial future dues increases, and focus additional union resources for improved representation at the system and/or local level. The Boilermaker Constitution also provides an annual cap on the amount per capita dues can be increased in any given year.

If ratified, the membership of the merged organization will be approximately 150,000 strong. This provides a broader base of membership to share the overall cost of the operation and lessen the dues burden on each individual member. This equates to better membership services and representation at a lower per member cost.

The Boilermakers have, through sound investment strategies, also substantially improved the bottom line of their operational budget this year by approximately $3 million dollars, without the Boilermakers’ members having to reach into their pocket. In fact, to support the activities and objectives of the Boilermakers 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 of over $350 million dollars, and the Boilermakers National Pension Fund with assets of over $6 billion dollars. In addition, upon consummation of this merger, BMWE and Boilermaker members will be serviced by a merged organization with operational assets alone in excess of $90 million dollars. These financial assets and the Boilermakers’ continuing competency and fiscal responsibility in the management of same, will serve to benefit every BMWE member by providing both the necessary financial resources and dues stability that BMWE could not otherwise provide.

Another important benefit this merger brings to the membership that BMWE cannot provide is the possibility for negotiating the Boilermakers National Pension Trust for its members. The Boilermakers have already been successful in negotiating this pension benefit for their members on one commuter railroad and are currently in negotiations with several others. The Boilermakers have committed to make participation in their National Pension Trust, currently valued at over $6 billion dollars, available to the BMWE membership and have committed to make negotiation of this pension for the combined railroad membership a priority of the merged organization.

This would include up to 15 years past service credit (worth $112.50 per month) for BMWE members in accordance with terms of the Trust and the potential for BMWE members to accumulate up to two years of pension credit for each full year of active service, based upon the number of excess hours worked in a given year. This pension benefit, if successfully negotiated into the rail industry, would provide improvements and enhancements to BMWE members’ retirement package, and would be in addition to any benefits they are now, or in the future, entitled to under the Railroad Retirement System.

Thus, what BMWE was not able to secure for the membership in the fight for Railroad Retirement reform (i.e., early retirement at less than age 60), may be achievable through the merged organization’s enhanced collective bargaining position. While there are no iron-clad guarantees until this benefit is negotiated, and the pension would be part of an overall economic package, the Boilermaker merger provides more tools and resources, a pension plan, and the organizational structure necessary to negotiate this pension benefit for BMWE members. This enhanced collective bargaining position is another direct benefit that the proposed merger brings to the membership of BMWE.

Health and welfare is another important area of benefit derived from this merger that could not otherwise be provided to the BMWE membership. As most members are painfully aware, the recently ratified National Agreement contains potentially substantial cost sharing for health and welfare insurance. The Boilermakers currently have health and welfare benefit experts who will assist the BMWE in developing a plan comparable to GA-23000 but with reduced or even no cost sharing.

The Boilermakers have extensive experience in health and welfare plan design and administration and have committed their experience, resources, and expertise to the BMWE Division for the purpose of exploring alternative health and welfare coverage, at comparable levels and quality of benefits, for the merged organization’s membership employed in the railroad industry. This experience in health and welfare plan design and administration could provide significant reductions in the health care cost sharing component BMWE members currently confront under the recently ratified National Agreement.

The Boilermakers have agreed to make this health and welfare issue a priority of the merged organization. If the merged organization is successful in implementing a Boilermakers National Health and Welfare Plan for railroad members, cost sharing reductions would be passed on to the members and would increase the amount of money in their pocket under the recently ratified National Agreement. This too translates into direct and substantial benefits to BMWE members and their families.

The following is just one example of the kind of health and welfare expertise the Boilermakers bring to the table. Upon consummation of the merger, all Grand Lodge officers, staff and employees, as well as all system division and federation officers, staff and employees, will be eligible and authorized to immediately participate in the current Boilermakers Officers and Employees Health and Welfare Plan. This will result in immediate savings of approximately $600,000.00 per year in health and welfare premiums for insurance coverage for Grand Lodge officers, staff, employees and retirees, and will also result in an immediate reduction in health and welfare costs to the BMWE system divisions and federations in the amount of approximately 75%, when compared to the current cost of insurance paid by BMWE members’ dues dollars. These immediate and substantial savings are provided for in the Merger Agreement and will serve to reduce dues dollar per-member costs, further stabilize BMWE membership dues, and free up additional resources for improving union representation at every level of the BMWE.

The level and quality of the health care benefits of the Boilermakers Plan are equivalent to the level and quality of the health care benefits enjoyed by the Grand Lodge Officers and staff and the system officers and staff according to experts retained by BMWE, but at less than half the cost.

The proposed Merger Agreement also provides BMWE members in the United States with entitlement to both the BMWE Strike Benefit Fund and the Boilermakers Strike Fund. Thus, U.S. members engaged in an authorized strike will be eligible to draw both BMWE and Boilermaker strike benefits while on strike. The merger also provides the Canadian membership with eligibility for strike benefits for the first time, as provided under the Boilermakers Constitution.

An improved strike benefit, coupled with a virtual doubling of the merged organization’s full-time legislative presence in Washington, DC, a combined membership strength of approximately 150,000 members, greatly increased financial resources, BMWE access to the Boilermakers’ research, education, safety, legal, collective bargaining, organizing, and apprenticeship training services, and the BMWE Division’s guaranteed autonomy to conduct its own affairs, will serve to enchance collective bargaining and political strength and improve the merged organization’s ability to "deliver the bacon" for the membership.

Under the proposed Merger Agreement, the BMWE Division will have two International Vice Presidents. They will be seated on the Boilermakers Executive Council, the governing body of the Boilermakers International when not in convention session. BMWE will have twice as many Executive Council members of any other division or conference within the Boilermakers. This will give the BMWE Division a substantial voice within the governing body of the merged organization.

One of the two BMWE Division vice presidents shall be elected as International Executive Vice President of the Division and will have overall supervision of the Division. In every case, the two BMWE International Vice Presidents shall always come from, and be members of, a BMWE Local Lodge. The BMWE Division will also retain its current complement of regional Vice Presidents (to be renamed BMWE Regional Directors) and its Executive Board (to be renamed BMWE Executive Committee). BMWE Division Regional Directors and Executive Committee members will continue to be elected in the same manner as currently by BMWE delegates to the merged organization’s convention. All current BMWE staff will be retained as staff of the merged organization to service the BMWE Division.

An interim election for all officers of the BMWE Division, including the top two positions, will be held at a special BMWE conference/convention in July 2002. At that time, all BMWE Grand Lodge elected positions will be open for nomination and election in the same manner as currently provided for under the BMWE Constitution and Bylaws — elected by the BMWE delegates to that special interim conference/convention in July 2002.

Starting in 2006, the two Boilermaker vice presidents from the BMWE Division will be elected by all Boilermaker delegates at the IBB Convention. BMWE regional directors (former BMWE vice presidents) and BMWE Executive Committee Members (former Executive Board) will continue to be elected solely by BMWE Division delegates.

The proposed Merger Agreement provides for the retention of all Grand Lodge staff and employees and the retention of the Chicago arbitration office, the Washington, DC office, and the Canadian office in Ottawa, Canada. All BMWE system divisions and federations shall continue to be autonomous bodies of the merged organization and will continue to be governed by their system division and federation bylaws in the same manner as currently. BMWE local lodges will continue to be governed by the provisions of the current BMWE Constitution and Bylaws, Article XXIII, which has been incorporated by reference into the proposed Merger Agreement and the Boilermakers Constitution.

The proposed Merger Agreement also provides that, "notwithstanding the provisions of the International Brotherhood of Boilermakers Constitution pertaining to mergers and consolidations, as long as the System Divisions, Federations, and Local Lodges are able to provide the necessary services within their financial resources, there will be no involuntary mergers or consolidations of said System Divisions, Federations, or Local Lodges ..."

The Boilermakers Constitution also provides convention expenses and allowances for all Boilermaker Convention delegates, including BMWE Division delegates to the Boilermakers International Convention. Such convention delegate allowances are paid by the Boilermakers in accordance with the Boilermakers Constitution. One convention delegate from each BMWE Division local lodge in the U.S. and Canada, and one convention delegate from each BMWE system division and federation in the U.S. and Canada, will be reimbursed for round trip transportation and be provided a per diem allowance of $150.00 for each day the convention is in session and the two days prior to and the two days following convention. This means that every BMWE local lodge and system division and federation in the U.S. and Canada, regardless of size and financial condition, will have the financial resources to seat a convention delegate at every convention of the merged organization and represent BMWE local lodge members with both a voice and a vote at convention.

It is also worthy to note that the BMWE Division will have the largest block of votes, representing approximately one-third of the merged organization’s membership, and the largest number of local lodges of any division within the merged organization. This will assure that the voice of the BMWE membership will be very well represented within the merged organization and its internal governance. This is another substantial benefit for BMWE members.

The Boilermakers currently disburse $50,000.00 per year in higher education scholarships to the children of Boilermaker members in the United States and Canada. Upon consummation of the merger, the children of BMWE members will also become eligible for these scholarships. The Boilermakers also provide, subject to approval of the International President, reimbursement for the cost of higher education for division officers and staff. These additional scholarship benefits will benefit members who are working to provide educational opportunities for their families, and will also provide educational opportunities for union officers and staff to prepare them to address BMWE’s future challenges.

It is also important to note that as members of the merged organization, BMWE rail workers will become eligible to work in the merged organization’s Construction Division during periods of temporary railroad furlough, thus providing additional work opportunities for BMWE members that could not otherwise be provided.

This merger will also begin the long overdue process of consolidating Rail Labor’s collective bargaining and political clout and is structured in a way that improves the prospects of bringing other rail unions into the newly merged organization, improves the ability to organize new members, and enhances Rail Labor’s strength and collective voice for the benefit of all railroad workers and their families. This consolidation of Rail Labor’s strength, and the elimination of costly duplicate services, will translate into additional direct benefits (i.e., more collective bargaining strength and less cost) for BMWE members.

While all the benefits which will accrue to the membership cannot be articulated in this one article, the BMWE leadership have attempted to highlight some of the major benefits to members and their families. It will be the members who cast the deciding votes as to whether or not to consummate this merger with the Boilermakers. Leadership has done its part to prepare and present for the members consideration what they believe is the very best merger proposal available for the benefit of the BMWE membership.

"This vote is not about union officers, rather it is a vote about your union, your fellow members, and your future," said BMWE President Mac A. Fleming. "The Grand Lodge Officers and the BMWE Merger Committee, have every confidence that you will carefully read and analyze the proposed Merger Agreement and related documentation carefully and competently. Make up your own mind regarding your future, the future of our great union, and what this merger means for you and your family, both today and tomorrow.

"The simple question each member must ask themself is, ‘will my future be better as part of the merged organization, or am I better off now?’ This is a question that each member must decide on their own and every member is urged to participate in this important ratification process, regardless of whether you ultimately decide to vote for or against this merger proposal. Just as we were reminded during the recent U.S. presidential election, it is vitally important that each eligible voter cast his or her ballot and let your voice be heard. Don’t let others make this important decision for you. Separate fact from fiction and make up your own mind. EVERY VOTE COUNTS, as well it should, as we move united in strength and purpose to face the emerging challenges confronting Rail Labor in the 21^st Century."