Deals and People January 8, 2003

Scalia to Leave DoL Post

January 8, 2003 (PLANSPONSOR.com) - Eugene Scalia, acting solicitor of the US Department of Labor (DoL), will step down from his post, the DoL announced.

Reported by

Fred Schneyer

Scalia, whose initial nomination was fiercely opposed by labor unions, is scheduled to leave his job as the DoL’s top lawyer January 17. Deputy Solicitor Howard Radzely succeeds Scalia as acting solicitor, the DoL said.

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“I have concluded that now is an appropriate time for me to leave the department and take on other challenges,” Scalia said in a statement. Scalia is the son of Supreme Court Justice Antonin Scalia.

President Bush appointed Scalia to the position through a recess appointment in January 2002 (See Bush Bypasses Senate, Appoints Scalia to DoL) , and when his recess appointment expired in November of last year, he was designated acting solicitor by the President. Bush first tapped Scalia as labor solicitor in spring 2001, but Democrats who controlled the Senate blocked a vote on his nomination over union objections to his opposition of workplace safety regulations during the Clinton administration.

In a statement released after the announcement of Scalia’s departure, United Auto Workers President Ron Gettelfinger called on the White House to tap a new solicitor better qualified to help protect American workers.

“Eugene Scalia served a recess appointment because the U.S. Senate would not confirm him in the face of his demonstrated hostility to enforcing basic workplace safety standards in areas such as ergonomics,” Gettelfinger said in a statement.” We hope that this time, President Bush will send the Senate a candidate who is worthy of confirmation.”

Benefits January 7, 2003

GE Workers Threaten Strike over Health Care Costs

January 7, 2003 (PLANSPONSOR.com) - In response to rising health care costs, 14,000 members of General Electric's (GE) International Union of Electronic, Electrical, Salaried, Machine and Furniture Workers-Communications Workers of America (IUE-CWA) union will go on strike just after midnight on Tuesday, January 14, according to a press release.

Reported by

Eric Hazard

The strike, set to last until midnight January 15, is due to GE’s increase of health care co-pays for workers and pre-65 retirees in its managed care plan. Additionally, the union said the strike is intended to serve as a deterrent to GE’s stated plan to seek “substantial” increases when national union negotiations start in May 2003.

According to the release, from 2000 to 2001, GE’s costs in its managed care plan increased by 9.7%, while workers’ co-premium costs jumped 16.0%. In a single year, GE will have shifted $43 million to $57 million in costs onto workers and retirees. At the same time, GE’s total health care costs, as a percentage of profit, were lower in 2001 than in 1999. The union said this translated into nearly 145,000 families being hit with the cost hikes January 1.

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The strike will impact 48 locations in 23 states working in GE’s appliance, lighting, power systems, aircraft engine, consumer and industrial repair, industrial systems, plastics and transportation businesses.

“IUE-CWA is taking on the fight for affordable health care for all GE workers, including unrepresented workers,” said IUE-CWA President Edward Fire. “GE has provoked a strike through its greed. A company that sets record profits each year, $14.1 billion in 2001, can afford to maintain health benefits without forcing workers and retirees to pay more.”

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