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January 2010, Vol. 42 No. 1
News From the AFL-CIO, CtW, International & National Unions
Labor lobbied hard with congressional leaders to reconcile different versions of the House and Senate-passed health care bills. Unions made big legislative push as December ended following Senate passage of health care legislation on Christmas Eve. AFL-CIO reported that in the second week of December, union leaders and activists visited more than 100 members of Congress "to deliver thousands of letters from union members with a simple message: Pass real health care reform now-without a new tax on workers' benefits." Among the Senators they targeted was Ben Nelson, Democrat from Nebraska, who later voted to end filibuster helping to pave way for historic Senate vote. AFL-CIO Dec. 7 called on Congress to extend jobless benefits and health care assistance for unemployed workers. AFL-CIO Executive Vice President Arlene Holt-Baker cited a new report which predicted that one million workers will lose their benefits in January unless Congress acts quickly. Benefits for another 3.2 million will end in March, the report projected. The report was released at a news conference in Washington, D.C. where Holt Baker was joined by labor commissioners and officials from eight states, workers, union representatives and civil rights leaders. There are currently 26 million people who are either jobless or without full-time work. New study, "Keeping a First Line of Defense for the Jobless," was released by the National Employment Law Project (NELP), Center for American Progress Action Fund and The Half in Ten Campaign.
AFL-CIO President Richard Trumka, CtW Chair Anna Burger and other key international and national union leaders participated in White House Jobs Summit Dec. 3. AFL-CIO and affiliates such as Working America also sponsored series of roundtables around nation on the eve of the Jobs Summit to push for "immediate creation of good jobs." Federation released a five-point program for job creation while the CtW and other unions also submitted plans. The AFL-CIO plan includes: extending the lifeline for jobless workers; Rebuilding America's schools, roads, and energy systems; increasing aid to state and local governments to maintain vital services; funding jobs in our communities; and putting TARP funds to work for working families. "The job crisis is hitting all working Americans across the country," AFL-CIO President Richard Trumka said. "We need jobs-now."
CtW union leaders unveiled their plan for job growth at President Obama's Jobs Summit in December. "The only way out of this recession is to work our way out of it," said CtW Chair Anna Burger. According to a statement, CtW's proposals focused on investment in building and maintaining state and local infrastructure; stimulate investment in emerging industries; generate additional jobs through addressing the "growing hunger crisis" across America with broadened food stamp eligibility as well as continued unemployment and health care benefits; and direct job creation with investment in public service jobs. CtW also pushed for a new job-creating trade policy that would promote U.S. exports.
Labor pushed back in December against Senate's health care reform proposals that would tax health plans worth more than $8,500 per year for individuals and $23,000 per year for families. AFL-CIO launched new series of ads opposing what it called a "new tax on middle class families' benefits." New tax, said the AFL-CIO, would increase premiums, cut benefits and raise out-of-pocket expenses for working families. Because the tax is not indexed to inflation, one in five workers would be affected by 2016, AFL-CIO said. "This would amount to an enormous tax on workers' health care benefits, one that would grow rapidly, as insurers increase premiums by an equivalent amount. It would shift health care costs onto the backs of workers," federation predicted.
AFL-CIO Building and Construction Trades Dept. reported in December that the Commonwealth Court of Pennsylvania "flatly rejected" a motion to implement an injunction to prohibit a Project Labor Agreement (PLA) on a 4,100-bed, $400 million state prison project in Montgomery County, Pa. According to the BCTD, the case was brought by the anti-union Associated Building and Contractors Association (ABC). ABC asked the court to block the state's Department of General Services from entering into any Project Labor Agreements. "This is just one more in a long line of examples where courts at every level, in every region of the United States, have determined, through exhaustive reviews of all manner of individual PLAs, that such agreements, in certain circumstances and upon appropriate review by the government entity, are valid and beneficial to the government and therefore the taxpayer," the BCTD said.
Union nurses from around the nation gathered in Phoenix in December and launched the 150,000-member National Nurses United (NNU), what is now the largest professional union for registered nurses. New union combines the California Nurses Association/National Nurses Organizing Committee, which has 83,000 members in several states, the Massachusetts Nurses Union, with 23,000 members, and the 45,000 members from the United American Nurses, who work primarily in the Midwest. According to the merger agreement, the unions will continue to operate separately, but will be aligned under the larger umbrella of National Nurses United. The goals of the new organization will be to "assert a stronger voice on behalf of nurses in the health reform debate in Congress" and to organize nonunion nurses. "We're just thrilled we are finally all moving forward together, and we're expecting we will be able to play a much bigger role in the health care debate in the future," said Karen Higgins, a Massachusetts nurse who is one of three organizers elected president of National Nurses United.
Teamsters General President Jim Hoffa urged Obama Administration to "think America first" when it comes to trade policy. Hoffa's remarks were later cited by President Obama in his nationally televised address following the White House Jobs Summit. "We've had a bad trade policy going back to Clinton, going back to Bush. We made bad trade deals. If you're going to export, you need to open markets," Hoffa said during a panel discussion on expanding American jobs through exports. As an example, he pointed out that Korean companies sell cars here but we can't sell U.S.-made cars there. "We still can't get our beef in, we can't get our cars in," he said. The same is true of China and Japan, he said. "When you go to China, they think 'Buy Chinese'. You want to do business there, you build a plant there," he added.
International Labor News
Some 40 union members from the United States attended the United Nations climate change meetings in Copenhagen, Denmark, in December as part of a 400-member global union movement delegation led by the International Trade Union Confederation (ITUC). The labor delegation sought to shape a global climate change treaty which emerged from the historic meeting. More than 25,000 delegates and observers descended on Copenhagen for the conference which was held Dec. 3-18. "Our work here as members of the ITUC delegation reflects our own efforts to shape U.S. climate change legislation. Our goal as an international union movement is to ensure that social and economic concerns are included in what had been an environmental discussion," said Bob Baugh, executive director of the AFL-CIO Industrial Union Council and co-chair of the AFL-CIO Energy Task Force.
Unionization rates in Japan increased during 2009 for the first time since 1975, reported the government's recently released Basic Survey on Labor Unions conducted in June last year. Estimated 18.5 percent of all employees belonged to unions, up 0.4 points from the previous year. According to news reports, increased membership among non-permanent workers, on top of a shrinking labor population, is considered to have contributed to the rise in percentage. Government survey found the number of union members nationwide totaled 10.078 million. Among industries, accommodation and food services experienced the highest jump in union membership of 11.2, followed by a 6.9 percent increase for wholesale and retail industry and 4 percent for transport and postal services. Unionization in construction and public service went down by 3.1 percent.
National and Political Events
Wal-Mart Stores Inc. in December agreed to pay $40 million to 87,500 Massachusetts employees to resolve class action suit filed in 2001 which accused giant retailer of wage and hour violations. "It is the largest settlement of any wage and hour class action in the history of Massachusetts, and it dwarfs settlements of similar class actions against Wal-Mart across the country," said plaintiffs' attorney Philip Gordon. Workers had accused Wal-Mart of failing to provide proper rest and meal breaks, manipulating time cards and refusing to pay overtime. Payment comes less than three months after Wal-Mart agreed to a deal with state prosecutors to pay $3 million to settle charges that it denied its Massachusetts workers proper meal breaks. According to news reports, people who worked for Wal-Mart between August 1995 and this year will receive payments of between $400 and $2,500, depending upon their years of service.
Regional & Local Union News
Bakery, Confectionery, Tobacco and Grain Millers International Union (BCTGM) Local 57 Dec. 8 filed unfair labor charges with the National Labor Relations Board against Wendy's New Bakery Co. accusing company of illegally implementing terms of a proposed new contract at its bakery in Zanesville, Ohio, the union reported in a statement. According to BCTGM , some 150 union workers have been working under the terms of a collective bargaining agreement that expired in March 2009. Union refused the company's last offer which "eliminates the workers' pension, guts their health care coverage and takes away many of their rights." According to BCTGM International Representative John Price, an impasse has not been reached and the union wants to continue negotiations. Additional ULP charges have been filed by the union resulting from the plant manager's efforts to intimidate workers through surveillance of union activity and efforts by management to negotiate directly with employees.
Hundreds of hotel workers and supporters Dec. 5 participated in a demonstration along Hollywood's Sunset Strip organized by Unite Here Local 11. Protestors rallied against pay cuts, reduced benefits or other givebacks in contract talks with 21 union hotels in the Los Angeles area. Contracts covering some 4,300 hotel workers expired this year and the union reported that it is resisting management demands for givebacks and other concessions. According to news reports, the demonstration was peaceful and took place in front of the Andaz, formerly the West Hollywood Hyatt, which reopened in January after Hyatt refurbished the property. "The Hyatt and other hotels have the opportunity to take the high road, providing strong union contracts with livable wages and affordable health benefits," said Lorena Lopez, a Local 11 organizer and former hotel worker. The 21 hotels include major chains, including Hyatt, Marriott and Hilton.
Service Employees International Union 1199SEIU United Healthcare Workers East Dec. 11 negotiated first contract with four Massachusetts hospitals operated by Caritas Christi Health Care. Union and Caritas Christi jointly reported that the four-year agreement, covering nearly 4,000 workers, is the first master contract covering several hospitals in the state and first to partially index wage increases to hospital reimbursements. Workers voted for SEIU representation earlier this year in an election where the hospital agreed to "management neutrality." SEIU Executive Vice President Mike Fadel told news media two more Caritas Christi hospitals are expected to hold elections sometime next year. Among other key items, contract established a minimum "living wage" of $12.62 Jan. 1 while other employees received a three percent boost.
International Association of Machinists agreed Dec. 3 to seven-year collective bargaining agreement that will keep Harley-Davidson's two facilities in York, Pa. Company had threatened to move operations to Shelbyville, Ky., if workers failed to ratify pact. Union said agreement consolidates both facilities into one with employment reduced to about 1,000 workers by 2012 from its current level of 1,900. Layoffs will be based on seniority, IAM said. Union spokesman Frank Larkin told news media pact reclassifies current workers at the facilities into five categories with different wage scales, while new or rehired workers will be classified into two categories. Production workers will not receive wage increases in the second through fourth year of the contract and there will be no raises in the second through fifth year for maintenance workers. Larkin said workers were relieved the plant will remain in York but are "bitter" at the sacrifices they are required to make.
International Longshoremen's Association recently ratified two-year extension of a master contract covering between 13,000 and 17,000 East and Gulf Coast dockworkers. Contract extension covers workers who load and unload ships from Maine to Texas. Wage increases range from $1-$1.50 hourly, depending on classification, with an increase in starting base rate from $16 to $20 hourly. "This master contract extension passing by such a large margin represents a monumental achievement for the ILA rank-and-file members," said ILA President Richard P. Hughes. Contract also provides that the union will be "partners with management in the introduction of new technology," according to union spokesperson James McNamara. He explained that the parties will create a new joint committee on technology that will look at many issues.
American Federation of Musicians Local 99 and the Labor Education and Research Center recently launched the "Fair Trade Music" campaign to establish minimum pay guarantees for Portland musicians. Union leaders complain that too much money taken at the door in cover charges does not go to musicians who provide the entertainment. "…by the time the band members get their cut, the percentage is maybe 20 percent. You're splitting 30 bucks between four guys," said Fair Trade Music steering committee member Sean Hudson. "We don't even make close to minimum wage, when you factor in the hours preparing and actual performance." He said musician pay should be commensurate with club capacity and the type of liquor license it possesses. AFM Local 99 President Bruce Fife said the union's effort is the pilot project for a minimum pay push throughout the nation.
In the Public Sector
Federal union leaders embraced executive order signed by President Obama Dec. 9 to establish a new National Council on Federal Labor-Management Relations that will be responsible for creating "labor-management forums" across the government. President Obama's order said forums will allow federal agency managers and union representatives to discuss agency operations in a "nonadversarial" setting. "The executive order clearly demonstrates to the political and career managers in each agency that the president wants a real change away from the confrontational, anti-union labor relations approach that has been practiced by the managers and labor relations officials over the last nine years. It will be up to the White House to hold agencies accountable for making the 180 degree turn quickly," said American Federation of Government Employees President John Gage.
New report by the Economic Policy Institute (EPI) said joblessness will become worse unless state governments receive massive amounts of federal aid. According to EPI analyst Ethan Pollack, recession has led to much lower tax revenues for state and local governments which are forcing them to cut spending and raise taxes, actions that will lead to lower consumer demand and higher unemployment. Report, "Dire States: State and Local Budget Relief Needed to Prevent Job Losses and Ensure a Robust Recovery," was released at a forum in December in Washington, D.C. According to Pollack, states face a two-year $357 billion budget shortfall for fiscal years 2010 and 2011, while local governments face an additional $80 billion deficit. Without state and local budget relief, current and future shortfalls will cause millions of job losses and likely contribute to a drawn-out and painful recovery, Pollack said.
NLRB Rulings and Significant Legal Actions
National Labor Relations Board recently affirmed Administrative Law Judge's ruling that Starbucks violated labor rights of two workers in New York City by restricting activity on behalf of an Industrial Workers of the World union local and because of their support for the union. NLRB ordered Starbucks to reinstate with back pay two of the three fired employees, Joseph J. Agins Jr. and Daniel Gross, who the ALJ had determined were fired unlawfully, and to allow workers to wear pro-union pins to work. The company "interfered with, restrained, and coerced employees" at four stores in New York City by restricting their freedom to wear union buttons, the board said. IWW, which is attempting to organize Starbucks workers, issued a statement calling the NLRB decision "a huge victory" which gives "new momentum" to shop-floor organizing efforts.
By Roger Smith, President & CEO
American Income, National Income Life Insurance Company
This year, like last, I am choosing to stand with those in need, and there are plenty. I pride myself at being at the opposite end of the Chamber of Commerce, the moneyed on Wall Street, and the Fat Cat Bankers.
Which side are you on, is a question we need to ask, and re ask. Whether it is in the United States, Canada or New Zealand, we will ask the question. Elected officials, business associates, big banks and trade groups; all should be held accountable for the side they choose. Now is the time for accountability from those who; fight labor law reform, financial regulator reform, health care reform, or block change that brings shared prosperity to working families.
It is true that the greedy have chosen their side. The 6 largest banks in American handed out of $140 billion to their top tier. That is enough money to keep every home out of foreclosure for the next several years. The Chamber of Commerce spent over $100 million fighting EFCA, a public option for health care, and the creation of a consumer financial protection agency. Some elected officials chose to vote for special interests over the interests of the American public. It is time to ask the question, which side are you on?
In this New Year, I am most hopeful that there will continue to be organized outrage and action against those who are on the wrong side of working families. I am optimistic that we can create a foundation for a Fair Economy, one that puts people to work and works for people. I have seen the results of what can happen when we pull together for the cause of fairness and justice.
This last year, I was privileged to Chair the Business Leaders for a Fair Economy. This coalition of over 1000 business leaders, entrepreneurs and small business owners came together to counter the myth that the Employee Free Choice Act would hurt the business community.
I am proud to say that I, along with other outstanding business leaders Darren Horndasch, Damien Miller and Diana Ortiz, were presented the Eleanor Roosevelt Human Rights Award by American Rights at Work for our work on the coalition.…
As business leaders we know that shared prosperity starts with putting real change in workers pockets. It starts with putting people back to work and closing the ever growing wage disparity between the top 1/10 of one percent, and the millions of workers who have lost their job or suffered from flat or declining wages.
These issues are personal for me because the American Dream is very real to me. Everyone should have the same opportunity to achieve their dreams as I did.
I started my career in Los Angeles: I learned how to sell insurance in L.A. and actually in order to sell insurance you had to obtain a license. That license was called a producer license.
So I got my producer's license and then moved to Oklahoma and onto other states. Being young and single I didn't want to tell women I was just meeting that I was an insurance salesman, so I told them I was a producer from Hollywood.
As we look at American today, you would think after 35 years of hard work and reaching the pinnacle in the life insurance industry, I would be proud to tell people that I am a CEO.
In reality, sometimes I am embarrassed to use those initials CEO.
For far too many, the initials "CEO" have come to signify choosing the wrong side; greed, corruption and disdain for hard working men and women, especially those who choose to belong to a union.
Our economic system fails when CEO's can bankrupt the companies they've been appointed to oversee. For a CEO to steal the dreams of a secure retirement from the very workers who built the company is unconscionable.
CEO's who squander corporate profits to hire union hating organizations to violate labor law and fire and intimidate workers for exercising their right to for a union are no better than common criminals.
My saving grace is I am proud to be the CEO of a company that is different.
Last year, AIL/NILICO negotiated a new contract with our employees who are members of OPEIU Local 277. That contract puts more money, pensions, better health care and improved benefits into our employee's pockets.
Our commitment to shared prosperity has paid off at the bottom line. AIL and NILICO experienced over 20% growth in 2009, added 1500 new sales agents, expanded the number of public relations professionals, and all of them are dues paying union members.
To flourish in 2010, we must put more money into the pockets of the unemployed, underemployed and underpaid workers. We must create good jobs, allow for workers to choose to organize and protect consumers from predatory lenders. We must create and advance an economy built on fairness for all.
Lastly, we must demand accountability for the answer to the question, which side are you on?
AIL/NILICO President & CEO Roger Smith recently received the Eleanor Roosevelt Human Rights Award presented by American Rights at Work Education Fund.
Smith was honored for his service as chair of the Business Leaders for a Fair Economy, a business coalition which supports passage of the Employee Free Choice Act.
Others honored at the event held in Washington, D.C., included AFL-CIO President Emeritus John J. Sweeney, actors Richard Schiff and Bradley Witford and three business leaders who are members of the coalition.
Smith was called a "longtime ally for working families," by the American Rights at Work Education Fund. "Through their advocacy to elected officials and outspoken affirmation that the legislation is necessary for economic growth, this coalition helped counter the myth that the entire business community is opposed to the Employee Free Choicer Act," said the group in presenting the award.
"I am proud to be the Chair of such a remarkable committee of responsible Business Leaders committed to the principles of fairness and justice. I speak on their behalf when I say we believe that shared prosperity starts with putting real change into workers pockets," Smith said in his remarks after receiving the award.
He said Business Leaders for a Fair Economy was created "to be a voice of reason" offering concrete solutions for building sustainable communities. He said passage of the Employee Free Choice Act will level the playing field for workers.
"By honoring a workers right to organize, business leaders give workers a chance at real change. When a union member earns 20 percent higher wages that a non-union counterpart, it has significant economic impact on the communities where we all live. In our case, this creates an environment where our businesses can grow and thrive," Smith said.
The American Rights at Work Education Fund was founded five years ago to conduct research, execute public policy campaigns and build coalitions to promote the freedom of workers to organize unions and bargain collectively.
The Eleanor Roosevelt Human Rights Award is present annually to "those who have helped champion workers rights as human rights." It recognizes Eleanor Roosevelt's dedication to labor issues and her devotion to human rights.
This award is the second national recognition that Smith has received for his work on behalf of working families. In 2007, he was named a "Hero of Health Care" by the labor-supported health care coalition, "America's Agenda: Health Care for All."
American Income Life and National Income Life Insurance Companies announced Victor Kamber has been appointed Corporate Vice President and Executive Director of the AIL Labor Advisory Board.
Kamber replaces Jules Pagano who retired in December.
"Victor Kamber's breadth of experience in multiple facets of public affairs, politics and labor relations will be a tremendous asset to American Income Life and National Income Life," according to Roger Smith, CEO and President of AIL/NILICO.
Kamber has a long history of promoting organized labor by serving as assistant to the president of the Building and Construction Trades Department, AFL-CIO, and director of the AFL-CIO Task Force on Labor Law Reform. As President of the Kamber Group his firm has represented over 50 National and International Labor Unions in the United States and Canada. In addition, he has been a prominent political consultant, commentator, and a prodigious writer on contemporary American issues.
"Kamber is a master of assessing critical issues and providing thoughtful solutions on contemporary issues. He is the author of four books including "Poison Politics" and co-author of the best seller "Are You a Conservative or a Liberal." His frequent articles and opinion pieces on a variety of issues appear regularly in newspapers around the country," stated Smith.
Kamber is a respected and prominent political consultant and commentator. He is a frequent guest on national and local radio and television panel debate shows. He has appeared on virtually every cable and network news program of note.
Kamber brings thirty years of experience, from building one of the nations' largest independently owned communications consulting and public relations firms, to his most recent position as President of Coalition Services for Carmen Group. In addition to full time work at AIL, Kamber is an Adjunct Professor at American University in the School of Communication and Government. He is currently teaching an upper lever course on The American Presidency. In the spring he will be teaching Political Parties, Special Interests and Lobbying to graduate students.
"The addition of Victor Kamber to the DC office, will propel AIL/NILICO onto a broader stage for championing progressive politics and policies for working families," Smith concluded.
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