Hot News For November 2009

AFL-CIO Fast Facts on Health Reform Legislation

HR 3962, “The Affordable Health Care for America Act”
Real Solutions to Real Problems

The national debate over health care reform is being driven by two huge problems: 1) the unsustainably high costs of health care and 2) the rising number of those without insurance (already 47 million people) and those who have insurance that is too expensive to use (another 25 million).

Unless comprehensive reform is enacted now, employer-sponsored insurance will soon be unaffordable to almost all employers, Medicare will cost so much that Congress will have to make huge benefit cuts to keep the program solvent, and state and federal costs for Medicaid will rise to prohibitive levels.

On November 8, 2009, the House of Representatives completed seven months of intense work on health reform legislation and passed HR 3962, “The Affordable Health Care for America Act”.

• HR 3962 stops the scourge of medical bankruptcy with two powerful steps: a ban on yearly and lifetime coverage limits, and a cap on out-of-pocket spending.  Today there are 4000 medical bankruptcies a day, and 78% of those claimants had insurance.  Their insurance ran out before their bills did.  This travesty will end with HR 3962.  It’s reform that works for working families.

• HR 3962 eases the burden on union plans that cover early retirees.  It creates a new federally funded insurance program that picks up 85% of the “high cost cases” – defined as cases costing between $15,000 and $90,000.  Today unions face a tough choice: if you cover early retirees, then your costs go through the roof.  If you don’t, the retirees are hit with the bill.  That ends with HR 3962.  It’s reform that works for unions and early retirees.

• HR 3962 saves seniors money and strengthens Medicare.  After all the insurance company-fueled talk radio scares about how seniors will be hurt by reform, the truth is that seniors come out ahead in HR 3962:
1. Seniors get an immediate $500 increase in their drug allowance
2. The “donut hole” – where Medicare benefits cease between $2830 in total expenditures (2010 figures) and don’t resume until $4550 is spent – is completely closed over time
3. 50% cost cut for brand name drugs in the “donut hole” until it is closed
4. Medicare can finally negotiate better drug prices with the lifting of the Bush-imposed ban on negotiating with drug manufacturers
5. Lowers cost of X-rays, CAT scans, and other imaging services in Medicare.  Lower costs for Medicare will in turn, lead the way for lower imaging services costs for people with employer/union-sponsored insurance
6. No more co-pays and deductibles for routine checkups, screenings and preventive services such as cancer screening, immunizations, and cholesterol screening.  This starts now, and covers a major out-of-pocket cost for Medicare recipients

• HR 3962 stops insurers from denying coverage or charging more for pre-existing conditions.  It also disallows rescinding coverage when a claim is filed and the insurer “discovers” an earlier problem.  This outlaws insurance abuses that have left people high and dry when they can least afford it

• HR 3962 starts solving problems immediately, with strong consumer protections for those with private insurance:
  1. Sets a 15% cap on insurance company administration and profits, with refunds if they use more of our premiums than that
  2. Children up to age 27 must be covered on the family plan, if the parents so choose
  3. Watchdog function starts January 1, 2010 to protect against insurers jacking up premiums before HR 3962’s cost containment measures kick in.  The insurers must submit enough hard evidence to the state insurance commissioner after 1/1/10, in order to justify all premium increases
  4. Ends anti-trust law exemption that allows health insurers to monopolize markets

• HR 3962 means more prevention and early detection. There will be no co-pays and deductibles for routine checkups, screenings and preventive services such as cancer screening, immunizations, and cholesterol for any private insurance plan in the new insurance exchange

• HR 3962 means more family doctors.  It invests in training programs for primary care doctors, and then increases the fee schedule for primary care to help keep them.  More primary care means lower health care costs

• Small employers with low-wage workers – including union employers -- get tax credits that pay for half the cost of health insurance for two years

• Cost containing changes in care delivery – reduces unnecessary re-hospitalizations and expensive hospital acquired infections; paying hospitals and doctors based on the quality of care instead of the quantity. Also, new models of care such as doctors and hospitals working together and accepting one annual fee to treat entire episodes of expensive chronic disease, like diabetes, heart attacks, and cancer will lower costs substantially, over time

• HR 3962 provides coverage for over 30,000,000 of our friends and neighbors.   Coverage matters because: 1) people without it get sick more often, stay sick longer and die too young; an inexcusable reality in America today and 2) every family with insurance now pays $1000 each year to cover care for the uninsured

Health Care Reform Texas impact district bt district,
click on each district to see the impact...

• Louie Gohmert (TX-1)
• Ted Poe (TX-2)
• Sam Johnson (TX-3)
• Ralph M. Hall (TX-4)
• Jeb Hensarling (TX-5)
• Joe Barton (TX-6)
• John Abney Culberson (TX-7)
• Kevin Brady (TX-8)
• Al Green (TX-9)
• Michael T. McCaul (TX-10)
• K. Michael Conaway (TX-11)
• Kay Granger (TX-12)
• Mac Thornberry (TX-13)
• Ron Paul (TX-14)
• Ruben Hinojosa (TX-15)
• Silvestre Reyes (TX-16)
• Chet Edwards (TX-17)
• Sheila Jackson Lee (TX-18)
• Randy Neugebauer (TX-19)
• Charles A. Gonzalez (TX-20)
• Lamar Smith (TX-21)
• Pete Olson (TX-22)
• Ciro D. Rodriguez (TX-23)
• Kenny Marchant (TX-24)
• Lloyd Doggett (TX-25)
• Michael C. Burgess (TX-26)
• Solomon P. Ortiz (TX-27)
• Henry Cuellar (TX-28)
• Gene Green (TX-29)
• Eddie Bernice Johnson (TX-30)
• John R. Carter (TX-31)
• Pete Sessions (TX-32)

Letter from Jim Little on Health Care

Brothers and Sisters,

History is being made. For forty years, the American Labor Movement has been losing the battle for meaningful and comprehensive healthcare reform. But, today we are on the cusp of achieving our goal. Within days, the House of Representatives will vote on The Affordable Health Care for America Act H.R. 3962, which merges and improves the three previous bills passed by the House Education & Labor, Energy & Commerce, and Ways & Means Committees. H.R. 3962 meets President Obama's criteria of expanding access to coverage, providing competition in the market, reigning in skyrocketing costs, and demanding accountability from the insurance industry. The unveiling of a bill that includes a national public plan option, an employer mandate to either "pay or play", without placing a burden to carry the cost of comprehensive healthcare reform on middle class Americans is progressive and true reform.

Specifically, the inclusion of a Public Plan Option is a key facet of the bill. And, the Public Plan Option component will finally introduce real competition into the insurance market. Such competition will reign in skyrocketing costs, increase choice, steer quality improvements, and keep insurance companies honest. The employer responsibility provision serves to strengthen the new market dynamic by requiring employers to pay their fair share, or pay a penalty for their irresponsible behavior. These two key provisions, when enacted in conjunction with other market and delivery reforms, will strengthen our country even further by reducing the federal deficit by $30 billion over the next 10 years.

Additionally, HR 3962's progressive financing of healthcare reform is both sensible and responsible because only the wealthiest Americans are taxed, instead of financing reform of the backs of the middle class.

TWU applauds Speaker Pelosi for releasing a healthcare reform bill that provides real relief for working families and builds a solid foundation for the future. As the Senate and the House work towards moving the bills to a vote, we will continue to work with Members of Congress to retain the critical provisions included in "The Affordable Health Care for America Act" (H.R. 3962) and to bring long-overdue reform to our nation's healthcare system.

MEDIA ADVISORY

For further information contact:
For immediate release October 28, 2009 Beth Daly 301/943-4002 (cell) or
Jamie Horwitz 202/549-4921
Beth.daly1@gmail.com or
jhdcpr@starpower.net

Attention aviation, business and labor reporters and editors

Statement by
John M. Conley
Director of the TWU Air Transport Division
on
Today’s Announcement of the MCI (Kansas City) Maintenance Base Closing and Cuts in Other Cities Served by American Airlines

Announcements of base closings and job losses are always difficult to accept, these deep cuts are especially painful. AMR’s maintenance operations in Kansas City, Detroit, the Twin Cities and San Jose will be completely discontinued.

We know that this decision is completely unrelated to the quality, skill, work ethic and professional behavior exhibited by those affected – performance is not the question.

The factors leading to these cutbacks are not state secrets. The ongoing and unrelenting pressure created by economic uncertainty, instability, unpredictable revenue streams and overcapacity have contributed to an overall industry contraction. Add this to the lingering effect of frequent mismanagement and a deregulated environment combined with cutthroat domestic and international competition and you have turmoil.

TWU and AMR have worked closely in recent years to keep maintenance in-house, to market our facilities to other airlines and to find new ways to boost productivity. However, our efforts to save jobs, at MCI in particular, which started before the recent recession, have been hindered by the decline in travel over the past year. We’re still hopeful that before the Kansas City facility closes late next year that industry conditions will improve and allow many of our members to find work elsewhere in the company.

Transport Workers Union of America (TWU) represents 200,000 workers and retirees, primarily in commercial aviation, public transportation and passenger railroads, including 26,000 workers at AMR. The union is an affiliate of the AFL-CIO. For more information visit www.twu.org

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October 29, 2009

Robert F. Gless
Assistant ATD Director
AA System Coordinator
Transport Workers Union of America
1791 Hurstview Drive
Hurst. TX 76054

DFW Hangar 5 (DWH)

Dear Robert,
This is to confirm our understanding regarding DFW Hangar 5 (DWH).

The TWU agrees that through the present round of collective bargaining, DWH will be considered a “Maintenance Base” no differently than TULE, AFW and MCIE.

The AA and TWU negotiating committees will continue to negotiate an agreement on all outstanding Articles which will be subject to membership ratification. Work rules specific to “Maintenance Base" locations will become effective at DWH upon ratification of a successor agreement produced in the current amendment round. In the interim, DWH will operate under existing work rules, unless the parties agree to amend otherwise.

Based on this Letter of Agreement, the Company win exercise a one-year lease extension for DWH and will notify DFW Airport of that decision by October 31, 2009. Extension of the hanger lease beyond 12/31/2010 is subject to the successful negotiation and ratification of an agreement during the current amendment round.

If the above accurately reflects your understanding, please signify by signing below.

If you have any questions, please contact me at 817·967·1447.

Sincerely
James B. Weel
Director
Employee Relations

Agreed to:
Robert F. Gless
Assistant ATD Director
American Airlines System Coordinator
Transport Workers Union, AFL-CIO

co: B. Reding   D. Herring
C. Romano M. Burdette
J. Brundage  J. Conley
K. Durst D. Videtich
F. Cleveland M. Tinsman

DWH Questions

In summary, what does the recent letter between the TWU and AA regarding DWH provide?
The lease for DWH was to expire at the end of the year. In order to renew the lease, the Company’s interest was to reach an understanding with the TWU that during this round of bargaining, DWH would be considered a maintenance base. The company did not want to extend the lease if it were to remain Line Maintenance in the long term.

Is DWH considered a “Maintenance Base” from this point forward and can the Company begin using it as such?
The letter between the TWU and the Company states that the work rules that will govern DWH as a maintenance base are still subject to collective bargaining during this round of negotiations. Which means, DWH cannot begin to utilize work rules, (i.e. 1/7th rule) or classifications, (such as OSMs), until it is agreed to during negotiations and subsequently ratified by the membership.

Why did the Company only extend the lease for one (1) year?
Since the Company and the TWU are still in negotiations and uncertain when that will come to its conclusion, it was best to exercise the term to extend for one (1) year and leave the option open to extend beyond that for next year, when we should have a ratified successor agreement with the TWU.

In the letter it states “DWH will operate under existing work rules, unless the parties agree to otherwise”. Does this mean they can be changed and if so, who can change them?
The existing work rules governing DWH are locally developed between DFW management and TWU Local 565. In addition, since DWH is identified as a hanger, no differently then the other hangers at DFW, then it will be governed under those rules unless the local and operating management decide to change them and they do not conflict with the current AA/TWU M&R agreement. As an example, DFW management and Local 565 can agree to local rules/guidelines that would make DWH a separate work unit for overtime and bidding purposes. Conversely, Local 565 and local management cannot agree to adopt base work rules or add OSMs to the hanger.

How does this impact Title II employees at DFW/DWH?
The existing local work rules governing DWH and DFW for Title II employees are locally developed between DFW management and TWU Local 513. In addition, since DWH is identified as a hanger, no differently then the other hangers at DFW, then it will be governed under those rules unless the local and operating management decide to change them and they do not conflict with the current AA/TWU M&R agreement. As an example, DFW management and Local 513 can agree to local rules/guidelines that would make DWH a separate work unit for overtime and bidding purposes.

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