For Immediate Release
Thursday, April 03, 2003
AFSCME Issues Resolution on ULLICO
Executive Board Urges Directors To Return Profits
WASHINGTON —The International Executive Board of the American Federation of State, County and Municipal Employees, (AFSCME), AFL-CIO, issued a resolution calling for new leadership at ULLICO and urged the ULLICO board of directors to immediately return profits made from trading ULLICO stock.
The resolution condemns business practices by any corporation that undermines the security of America's workers and urges the ULLICO board of directors to return the profits they earned from the buying and selling of stock to the ULLICO treasury.
"As a labor union we fight day in and day out for the rights of our members," said AFSCME President Gerald W. McEntee. "We cannot stand by and allow their futures to be jeopardized."
AFSCME's executive board also called upon the ULLICO board to immediately release the Thompson Report to shareholders and appoint a new President and management team charged with returning the company to the purposes for which it was founded.
RESOLUTION
WHEREAS, the AFSCME International Executive Board is aware of the ongoing controversy concerning the operation and management of ULLICO, including the controversy over whether members of the ULLICO's Board of Directors should retain profits they made from trading in ULLICO stock and the controversy over whether the report on this matter prepared by former Governor Thompson ("Thompson Report") should be released to ULLICO's shareholders;
WHEREAS, ULLICO is an insurance company that was founded by labor unions for the purpose of providing life, health and other insurance programs to unions and union members at reasonable cost;
WHEREAS, ULLICO's majority shareholders are unions and their health and welfare and pension funds;
WHEREAS, the majority of the members of ULLICO's Board of Directors also serve as officials of the unions and benefit funds that are majority shareholders of ULLICO;
WHEREAS, AFSCME International Executive Board condemns unscrupulous business practices by any corporation that undermine the security of America's workers;
THEREFORE, BE IT RESOLVED:
That the AFSCME International Executive Board urges the members of ULLICO's Board of Directors to immediately return any and all profits they may have made from the buying and selling of ULLICO stock to the ULLICO treasury so that such profits can be used for the purposes for which the company was established; and
AND BE IT FURTHER RESOLVED:
That the AFSCME International Executive Board urges ULLICO's Board of Directors to immediately release the Thompson Report to ULLICO's shareholders;
AND BE IT FURTHER RESOLVED:
That the AFSCME International Executive Board urges Robert Georgine to immediately resign as President and Chief Executive Officer of ULLICO;
AND BE IT FURTHER RESOLVED:
That the AFSCME International Executive Board urges that a new President and management team be appointed at ULLICO and given the mission of returning the company to the purposes for which it was founded -- making insurance programs available to labor unions and union members at reasonable cost.
