NBC Nightly News, July 25, 2005, Monday

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NBC News Transcripts

SHOW: NBC Nightly News 6:30 AM EST NBC

July 25, 2005 Monday

HEADLINE: Two big unions leaving AFL-CIO

ANCHORS: BRIAN WILLIAMS

REPORTERS: ANNE THOMPSON

BODY:
BRIAN WILLIAMS, anchor:
There was a time when a union job was a fast track to the American dream, a good job at a good wage with decent benefits. The unions themselves got together under the massive AFL-CIO umbrella, and together they built much of America. But the news out of Chicago today is further proof that times have changed, and that this is not your father's labor movement. Two big unions are leaving the AFL-CIO after fighting over the future. Tonight the federation we used to call big labor might be a thing of the past. We begin here tonight with NBC News chief financial correspondent Anne Thompson with us from Chicago.
Anne, good evening.
ANNE THOMPSON reporting:
Good evening, Brian. At this convention, there is a battle over direction, whether to build political influence or membership as labor's numbers shrink. Fifty years ago, almost 1 in 3 workers belong to a union; now just 1 in 8 do.
In Chicago today, these were fighting words.
Unidentified Man: We say no. We say it's time for change.
THOMPSON: Two of the AFL-CIO's largest unions, the Teamsters and Service Employees left the federation, frustrated by the leadership's failure to change its emphasis from building political clout to building numbers.
Mr. ANDY STERN (Service Employees International Union): We have to resolve...
THOMPSON: Dissident leader Andy Stern says unions cannot stand still as the nation goes from what he calls a General Motors economy to a Wal-Mart economy.
Mr. STERN: The problem is that American workers in the 21st century are working more and making less. They have less health care and more debt. They have more hours worked and less security.
THOMPSON: Stern says the blueprint for the future can be seen in his Service Union's growth, adding 900,000 members in the last nine years. People like Kathy Osorto, a janitor and mom, who next week will get health insurance on top of an hourly wage that's almost doubled since she joined.
Ms. KATHY OSORTO: Now finally I've got $10.75, better than before, and I am so happy.
THOMPSON: AFL-CIO President John Sweeney wants to create a political operation that operates year round not just at election time to combat what he sees as a conservative anti-worker environment. Today he labeled the split a tragedy.
Mr. JOHN SWEENEY (AFL-CIO): A divided movement hurts the hopes of working families for a better life.
THOMPSON: Labor analyst Tim [should read Gene] Carroll called the secession a huge gamble. He says the further weakening of unions could affect the wages, health benefits and pensions of all employees.
Mr. TIM [should read GENE] CARROLL: Clearly, corporate America is watching this battle because I think they will be licking their chops if they see this disunity among labor continue.
THOMPSON: Today AFL-CIO President Sweeney said today the stakes have never been higher for working families, and tonight the same can be said for the labor movement. Brian:
WILLIAMS: Anne Thompson, with us from Chicago tonight, thanks.