September 20, 2019
On behalf of more than 600,000active and retired members of the International Association of Machinists and Aerospace Workers (IAM), I respectfully ask you to cosponsor H.R. 1406, the Aluminum Pricing Examination Act (APEX ACT). This legislation led by Representative Al Lawson (D-FL) would help remedy serious pricing irregularities in the aluminum can sheet market which is used extensively in the beer and beverage production industry.
The beer and beverage industry depends on imported aluminum can sheet and scrap to make beverage cans. This aluminum can sheet is a vital input in our hardworking members’ production of many, high- quality US-produced beers and beverages. Unfortunately, the price of aluminum in the United States is heavily impacted by the Midwest Premium (MWP), a transportation and storage premium that is set by one, single entity. Over the past two years, the MWP has more than doubled in cost while other logistics costs associated with aluminum have either remained level or decreased. We believe the methods used to determine and set this commodity benchmark are seriously flawed, causing market distortions, artificially inflated prices to consumers, lack of confidence in aluminum pricing, and put the jobs of our members in this industry at risk.
The Aluminum Pricing Examination Act (APEX) would place oversight of the aluminum pricing market under the Commodities Futures Trading Commission (CFTC). Congressional action on APEX would grant CFTC the necessary authority to oversee a fair and transparent price discovery process between aluminum buyers and sellers. Additionally, this legislation would help maintain the job stability and job quality of our members working in the beer and beverage production industry.
On behalf of thousands of IAMAW members working in the brewing and beverage distribution industries, I urge you to support this important industry by co-sponsoring H.R. 1406, the Aluminum Pricing Examination Act.
For more information, please contact IAM Legislative Director Hasan Solomon at (301)967-4575 or email@example.com.
Robert Martinez, Jr.