THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, July 28, 1995 TAG: 9507280455
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY LON WAGNER AND SHIRLEY CARTER, STAFF WRITERS
LENGTH: Medium: 77 lines
Leaders of three of the largest industrial labor groups signed an agreement Thursday to merge, a move that would create the country's largest and potentially most powerful union.
The United Auto Workers, International Association of Machinists & Aerospace Workers and the United Steelworkers of America would be 2 million workers strong under the pact.
The merger likely would not be completed until 2000, the unions said. When concluded, the new union would dwarf what is now the country's largest labor union, the 1.2 million member Teamsters.
The three unions combined represent about 10,000 workers in Hampton Roads, including nearly 2,000 auto workers at Ford's Norfolk Assembly Plant and 7,500 steelworkers at Newport News Shipbuilding. The machinists union is part of the Metal Trades Council, which represents 4,400 people at Norfolk Naval Shipyard.
Local union leaders were unsure what effect the merger would have on them or their members. Judith Boyd, sub-district director for the Steelworkers, said it would take a while for the leadership of the three unions to cement the details of the merger.
But she said it was a good idea.
``That one union is going to be able to much more effectively deal with the economic injustices the working men and women of this country have faced for the past 15 years,'' Boyd said.
Simply put, Boyd said, ``There's power in numbers.''
Labor experts agreed.
``The real question is, how come it's only beginning to happen now? Why has it taken so long for this?'' said Ken Goldstein, an economist with The Conference Board, a business research group in New York.
A merger would eliminate the unions' duplicate organizing and lobbying efforts. But more is at stake than that.
``This is hardly about trying to address today's situation, but rather to try to position themselves to be an influence and be a force tomorrow,'' Goldstein said.
Jerri Dickseski, spokeswoman for Newport News Shipbuilding, said the company was not sure ``if the merger will have an impact'' on the union's relationship with the company.
Norfolk Assembly Plant Manager Bill Boggs said he didn't see the merger causing any problems between the union and the company.
``It'll probably be a good move for everyone really,'' Boggs said. ``I don't see any negative for the union or management.''
Labor's influence has declined since its 1954 peak, when unions represented 34.7 percent of all nonfarm workers. Today that number is just 15 percent.
Mergers are nothing new to labor organizations, but they generally involve a large union absorbing a smaller one. This merger involves three like-sized unions, each of which is a member of the 13.3 million strong AFL-CIO.
The Auto Workers has about 771,000 members, the Machinists 474,000 and the Steelworkers about 615,000, according to AFL-CIO records.
Leaders from the three unions said they had discussed merging for years. But the plan came together quickly after a dinner meeting July 19 between their three presidents.
``This is a most historic moment in the trade movement,'' said George Kourpias, president of IAM. ``It will bring together the most progressive, militant labor organizations on the North American continent.''
Though the three leaders - Kourpias, UAW President Stephen P. Yokich and Steelworkers President George Becker - said the merger has nothing to do with internal politics, they all support Service Employees International Union President John Sweeney in his bid for president of the AFL-CIO.
Sweeney is running against AFL-CIO Secretary-Treasurer Thomas R. Donahue. MEMO: The Associated Press contributed to this report.
ILLUSTRATION: Graphic
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by CNB