AFSCME Addresses WMI

2002 Annual Meeting Resolution

    The American Federation of State, County and Municipal Employees (AFSCME) union has a resolution before the Waste Management (WMI) shareholders. In addition they sent a letter to all WMI stockholders urging adoption of the resolution calling for a study. The proposed study would look into the profit potential of seeking large municipal waste collection contracts. AFSCME argues that 79 cities have living wage ordinances which require that a living wage be paid by contractors of cities. Such living wage ordinances require that a contractor pay much more than minimum wages. The usually require paying over $8.50 per hour.

    AFSCME, a 1.3 million-member labor union, holds in its pension trust 14.4 million shares of Waste Management stock. They point to greater resistance to privatization since Septemeber 11th. They also state that from 1982 to 1997 local government only increased from 22% to 24% contracting. In addition they report that over 90% of cities returned contracted services to government operated services. 

    All the above arguments suggest that WMI's thrust to try to win more waste collection contracts from cities may hurt profits. Of course, it must be realized that AFSCME holds union contracts with most big cities and would lose union members if WMI wins contracts!