San Antonio driver fired for union organizing; support demo planned for Oct 5

A delivery driver for a San Antonio dairy company told reporters at a press conference on Wednesday that he was fired for trying to organize a union and that the company used his firing to intimidate other workers who wanted to form a union. The union said that it would stand up for the driver and called for a support demonstration on October 5.

Alex Vasquez, a husband and father of two, who has worked as a delivery driver for Oak Farms Dairy Products for three years, identified himself as a union supporter in August shortly after the Bakery, Confectionary, Tobacco Workers, and Grain Millers International Union (BCTWGM) began an organizing drive at Oak Farms in San Antonio.

On August 31, Oak Farm fired Vasquez, and shortly after the firing, his picture appeared on a company bulletin board with a note saying that Vasquez’s dismissal was due to his “Union Activity.”

The company has said that Vasquez’s termination was for other reasons, but Vasquez told a reporter for a local Fox News television station that “It’s all because of the union, for organizing.”

Since his termination, Vasquez, the union, and union supporters have received help from State Representative Roberto Alonzo (D-Dallas), who wrote Oak Hills CEO Gregg Engels telling him that by firing Vasquez, Oak Farms “purposely violated workers’ organizing rights” guaranteed under the National Labor Relations Act and continued to do by posting Vasquez’s picture on a company bulletin board as a warning to other workers.

Alonzo also wrote that

Oak Farms’ actions cannot be excused as the accidental activity of an unknowing management. The parent company of Oak Farms knows full well what the law is and what a collective bargaining contract looks like since they bargain collectively with the BCTGM and other unions at other locations. Oak Farms Dairy Inc. needs to be reminded that Section 7 of the National Labor Relations Act (NLRA) guarantees that “Employees shall have the right to self-organize to form, join, or assist labor organizations, to bargain collectively…. And to engage in other concerted activities…” This federal Act which took effect over 7 decades ago (76 years, to be exact) is enforced by the National Labor Relations Board and applies to workers throughout the United States, including San Antonio.

The union plans to file a complaint with the National Labor Relations Board to get Vasquez back to work. “It would help for the government to investigate all these charges,” said Cesar Calderon, organizer for BCTWGM. “And once they find merit, ask the company to reinstate Mr. Vasquez.”

To support Vasquez and other union activists at Oak Farms, the union will be holding a rally and demonstration at the Oak Farms plant, 1314 Fredericksburg Road, on Wednesday, October 5 at 3:30.

San Antonio Teamster strike gets support from local labor council

The San Antonio Central Labor Council (CLC) on September 28 heard an update from Teamster Local 657 member Tony Diaz on the strike at the Pioneer Flour Mills and voted to send $200 to Local 657 to show its support for the five-month strike. CLC President Gloria Parra told Diaz that the council wanted to do more and encouraged Diaz to let the council know what else it could do.

“While $200 isn’t a lot, the door is open for more assistance,” said Pancho Valdez, a Laborers Local 1095 member, who invited Diaz to the meeting.

Local 657 has been on strike against the Pioneer Flour mill, owned by C.H. Guenther & Sons, since April. Guenther, an international food processing company, wants workers to accept cuts to their health care benefit and give up other union benefits such as seniority rights.

Health care benefits are important to Pioneer workers because their health and safety is often compromised by conditions at the mill. Johnny Davila, who has worked at Pioneer for 32 years, told the San Antonio College Ranger that he developed breathing problems from inhaling flour particles while packing tortillas.

The strikers continue to maintain their picket line at the historic mill on South Alamo Street. Across the street from the mill gates, strikers have set up a camp site where picketers can refresh themselves with drinks and food after walking in the daytime heat that continues to reach 100 degrees or more.

Strikers are also picketing Guenther House, a company-owned restaurant in downtown San Antonio near the River Walk, a popular tourist attraction.

C.H. Guenther & Sons is a food processing company with plants in Texas, Kansas, Tennessee, South Carolina, the United Kingdom, and Belgium. It makes flour for McDonald’s hamburger buns at some of its mills in the US and in Europe at its UK and Belgium mills.

It also sells food products under a variety of brands that are mostly used in baking, such as  Pioneer Flour, Pioneer Pancake Mix, Pioneer Chili Seasoning, Pioneer Taco Seasoning, Pioneer Cornbread Mix, Pioneer Gravy Mix, White Wing Flour, La Paloma Tortilla Mix, Peter Pan All Purpose Flour, and Texas Style Cornbread Mixes.

Feds and 11 states step up effort to curb wage theft

Earlier this month, the US Department of Labor, the Internal Revenue Service, and 11 states announced that they were taking an important step toward stemming the practice of misclassifying workers as independent contractors, which robs workers of pay and benefits and puts those who follow the rules at a competitive disadvantage.

According to a press release from the Department of Labor, the two federal agencies and the states signed memoranda of understanding to improve communication and coordination to “end the business practice of misclassifying  employees in order to avoid providing employment protections.”

Misclassifying workers as independent contractors, which some employers do to avoid minimum wage and overtime laws and paying for benefits such as Social Security, workers’ compensation, and unemployment insurance, is especially prevalent among home builders, hotels, restaurants, janitorial contractors, health care companies, and day care facilities.

Earlier this year, the Department of Labor (DOL) recovered more that $219,000 in back wages for 44 workers at two Boston-area restaurants that misclassified staff as independent contractors.

The National Employment Law Project (NELP), which for a long time, has advocated for more aggressive enforcement against misclassification violations, said that the problem is growing. In a 2010 letter to congressional leaders, NELP Executive Director Christine Owens wrote,

Genuine independent contractors constitute a small fraction of the American workforce—by definition, an “independent contractor” operates a business—but the number of workers misclassified as independent contractors is large and growing. According to the Government Accountability Office, 15 percent of employers misclassify their workers as independent contractors, denying worker protections and benefits to at least 3.5 million workers a year.

The memoranda of understanding will improve the flow of information between the two federal agencies and the states that signed a memorandum.

The memorandum between the Department of Labor and the IRS enables DOL to refer wage and hour investigation information to IRS, which can use the information to pursue tax fraud charges against offending companies. IRS will provide DOL with information that can be used as evidence when DOL pursues wage and hour and other labor law violations.

States that signed a memorandum of understanding also agreed to share and receive information with and from the federal agencies.  Minnesota is one of the states that agreed to the cooperation effort. Minnesota’s labor commissioner Ken Peterson told Twin Cities.com that the state has been trying for years to crack down on misclassifications because they hurt more people than those directly affected.

“Tens of millions of dollars are lost each year in workers’ compensation premiums alone that should help fund the workers’ comp program,” Peterson said. “Other employers end up picking up the tab for these guys.”

In addition to Minnesota, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Missouri, Montana, New York, Utah, and Washington signed a memorandum with the federal agencies.

Speaking at a ceremony announcing the agreements, DOL Secretary Hilda Solis told the audience, ”We’re  here today to sign a series of agreements that together send a coordinated  message: We’re standing united to end the practice of misclassifying  employees. We are taking important steps toward making  sure that the American dream is still available for all employees and  responsible employers alike.”

Manufactured crisis threatens mail delivery and worker benefits

Back in August, just a few days before contract negotiations between the US Postal Service (USPS) and two of its unions were to commence, USPS issued a statement saying that within a month, the postal service would be insolvent due to the decline in first-class mail deliveries. The statement urged Congress to give USPS the authority to reduce health care and pension benefits and reduce its workforce without bargaining with its unions.

Not long after USPS issued its dire warning, a US House subcommittee voted in favor of HR 2309 by Rep. Darrell Issa (R-CA) and Dennis Ross (R-FL), which would if enacted create a control board with authority to override postal service collective bargaining agreements and impose layoffs, benefit cuts, and changes to seniority rules.

Along with proposed cuts to worker benefits, other proposals are being made to sharply curtail delivery to individuals and businesses including closing 3,700 post offices, laying off 120,000 postal workers, closing 300 processing centers, and ending Saturday mail delivery

Supporters of HR 2309 and the proposals to cut delivery service say that these measures are needed to avert  USPS’s insolvency crisis, which otherwise will require a taxpayer bailout. But postal worker unions say that the insolvency crisis is a manufactured crisis whose purpose is to provide political cover for cutting services and voiding collective bargaining provisions that protect benefits and jobs.

“These new legislative proposals constitute a transparent attempt to gut our benefits and reduce our bargaining rights without negotiations,” said President Fredric Rolando, president of the National Association of Letter Carriers. Rolando urged USPS to engage in constructive collective bargaining “that helps the USPS better serve the American people and the $1.2 trillion industry it supports.”

Postal workers unions on September 27 held a Day of Action to urge members of Congress to support proposed legislation that will save America’s postal service without the radical cuts proposed in HR 2309 and by USPS management.

The manufactured insolvency crisis is the result of the Postal Accountability Enhancement Act (PAEA) passed in 2006, which requires that USPS pre-fund 75 years of retiree health benefits within a ten-year period beginning in 2007. PAEA’s mandate makes USPS unique. No other business or government pre-funds retiree health care over this length of time. In fact, most businesses and governments fund this benefit on a pay-as-you-go basis.

As a result of the pre-funding mandate, USPS lost $20 billion between 2007 and 2010. Before the mandate, USPS was debt free; now it is $13 billion in debt all of which was taken on to meet the pre-funding mandate. Without the pre-funding payments, USPS operations would have made profits of nearly $700 million over the last four years.

USPS said that it wasn’t going to be able to make the next pre-funding payment because it has nearly maxed out its $15 billion debt ceiling and won’t be able to borrow any more money, which according to Postmaster General Patrick Donahoe, Congressman Issa, and Congressman Ross makes USPS insolvent and necessitates cuts to service and worker benefits.

During its Day of Action members of postal workers unions, including NALC, American Postal Workers Union, National Postal Handlers Union, National Rural Letter Carriers Association, and National Association of Postal Supervisors, rallied and visited local congressional offices throughout the US urging representatives to co-sponsor HR 1351 by Rep. Stephen Lynch (D-MA).

HR 1351 is a short-term solution to the manufactured crisis. It would require the US Office of Personnel Management to refund $6 billion in over payments that USPS has made to the Federal Employee Retirement System, an overpayment that all interested parties agree was made. That would be enough money for USPS to make this year’s pre-funding payment.

But to maintain a quality postal delivery system, unions say that PAEA needs to be repealed and Congress needs to take further action to free up USPS earned revenues that are sitting in surplus funds, actions that would cost taxpayers nothing.

Unions are also battling myths that make the decline of postal delivery seem inevitable–for example, one such myth holds that the internet renders the postal service obsolete. The internet, according to the unions, has changed mail delivery but not supplanted it. For example, while more people are paying  bills online, more are also relying on USPS to deliver goods purchased over the internet.

“In a time of rapid societal and technological change, we need to strengthen our universal communications and delivery network, not weaken it,” read a statement released by postal worker unions.  ”It would be a national travesty to begin to dismantle this unique network, jettison its numerous capabilities and jeopardize all its contributions, when the financial challenges—properly understood—can be addressed in ways that are more effective and cause no damage.”

Act of intimidation turns deadly at California hospital

A dangerous attempt at intimidation turned deadly on Saturday when a patient under the care of a temporary replacement nurse died at Alta Bates Sutter Medical Center in Oakland, California. The Registered Nurses, who should have been taking care of the patient, were not on the job because on Friday they were locked out by the hospital chain, trying to gain an advantage in contract negotiations in which the company is demanding 200 concessions from its unionized nurses.

The locked out nurses are members of the California Nurses Association/National Nurses United, who on Thursday conducted a one-day strike to protest the hospital chain’s demand for concessions, some of which will endanger patient safety by curtailing nurses’ ability to advocate for patient care.

After their one-day strike ended, the union nurses reported for work on Friday morning but were met by armed security guards and hospital administrators, who told them that they could not return to work for five days.

After nurses were barred from working, the union warned that the replacement nurses lacked the competency to provide safe patient care. On Saturday night, the warning came true when a Sutter cancer patient, according to the San Francisco Chronicle, died after a replacement nurse administered “a fatal dose of medication.”

“An incident like this is chilling and strikes right to our nurses concern about their ability to advocate for their patients,” said RoseAnn DeMoro, executive director of National Nurses United, to the San Francisco Chronicle. “It was irresponsible to lock out the nurses.”

Nurses who were locked out called the lock out an act of intimidation aimed at punishing nurses who want to protect their patients’ safety. The hospital contends that it had no choice but to lock out the union nurses because the temp agency demanded that Sutter sign a five-day contract for the replacement nurses.

But Martha Kuhl, a Sutter nurse, said that Kaiser-Permanente, whose workers walked out last week over an unfair labor practice charge, allowed its nurses and other health care workers to return to work after their job action ended. This is “compelling evidence” that the lockout is punitive and unwarranted, Kuhl said.

On Sunday night, union nurses and supporters held a candlelight vigil to honor the patient who died and to urge Sutter to stop its scare tactics and let union nurses return to work.

“When I heard of the tragic incident, I was shocked,” said a tearful nurse at the vigil. “At first I didn’t believe that this could happen to one of our patients and that Sutter would consistently refuse to bring us back to work; that Sutter would jeopardize our patients, our families, our community behind their greed and their punitive and retaliatory actions.”

Despite the tragic death, Sutter continues to lock out its union nurses. CNA is urging supporters to send a letter to Sutter CEO Pat Fry demanding that she end the unsafe lock out and return to the bargaining table to discuss the issue of patient safety, the nurses’ most important bargaining concern.

RNs strike for better patient care

“Patients before profits,” reads one of the signs on the picket line of registered nurses who belong to the National Union of Healthcare Workers (NUHW).  RNs who belong to NUHW began a three-day strike on September 20 to protest unfair labor practices that threaten patient care at Kaiser-Permanente, California’s largest health care provider.

“It’s upsetting to us to see patient’s suffering because we don’t have staff we need to provide services patients need and deserve,” said Jim Clifford, a mental health therapist at Kaiser-Permanente in San Diego and a NUHW member.

NUHW, which represents registered nurses and other health care workers at Kaiser-Permanente, and the company have been negotiating a new contract since May 2010. NUHW members want Kaiser to hire more staff. Kaiser wants to maintain current staffing levels and cut health care and pension benefits.

On Thursday in a show of solidarity, NUHW was joined by the National Nurses Union, the union for stationary engineers, and Northern California NUHW in a one-day sympathy strike.

National Nurses Union has been waging a similar fight for improved patient care at Sutter Health hospitals in Northern and Central California. On Thursday, 23,000 registered nurses who belong to NNU walked off the job to support Kaiser workers and to press Sutter Health to sign a fair contract.

Sutter is seeking a long list of contract concessions  that would restrict the ability of nurses to advocate for patient care. At a rally at Sutter’s Alta Bates campus in Berkeley, DeAnn McEwen, co-president of the California Nurses Association told the crowd, “When nurses are on the outside, there’s something wrong on the inside. She called Sutter’s concession demands,  “Drastic, unwarranted, and unconscionable. They’re harming patients and we’re standing in the gap.”

Among other things, Sutter is demanding that charge nurses be subject to dismissal when they advocate for patient care and that bedside nurses be barred from helping to determine staffing needs based on individual patient illness and need. Sutter also wants to eliminate sick pay for RNs, reduce their pension and health care benefits and cut pay for newly hired RNs by as much as $20 an hour.

Kaiser and Sutter are demanding concessions despite the fact that both are extremely profitable operations. Sutter profits since 2005 are nearly $4 billion. It’s 20 top executives have annual salaries of between $3 million and $1 million a year.

Kaiser, which is supposed to be a non-profit hospital, has recorded profits of $5.7 billion since 2009.

Both NUHW and NNU say that these two health care corporations have made their profits by cutting jobs and services. “In order for Kaiser to make money, they’re under-staffing services,” said Emily Ryan, a psychiatric social worker a Kaiser Sacramento and a NUHW members. “And they are providing substandard care to protect the bottom line.”

NNU says that in recent years Sutter has cut many patient services including, ending breast exams for women with disabilities, cutting psychiatric services, closing pediatric care units, and eliminating acute rehabilitation, dialysis, and skilled nursing services at some of its hospitals. It also cut services by two-thirds at its Mission District hospital in San Francisco.

Workers who joined the solidarity strike in Northern California returned to work on Friday. In Southern California, strikers will return on Saturday. But that’s not the end of the struggle for better patient care. On September 21 and 22,  1,300 social workers, therapists, health educators, dietitians, speech pathologists and audiologists, who belong to NUHW will engage in a two-day strike.

“Our primary goal is to facilitate change that makes patient care better,” Ryan said.

Tyson Foods agrees to pay $32 million to settle Fair Labor Standards suit

Tyson Food earlier this week agreed to settle a Fair Labor Standards lawsuit initiated by the United Food and Commercial Workers over Tyson’s practice of not paying workers for the time they spend at work putting on and taking off protective gear they wear to keep the food they process safe and for their own protection.

“Every American deserves to get paid for the work they do,” said Joe Hansen, UFCW International President. “We’re changing the way meatpackers do business and making them pay thousands of workers correctly.” And in fact, the current industry-wide standard now is to pay workers for this activity, but not 12 years ago when the union brought suit against the company.

Tyson agreed to pay $32 million to settle the suit that will affect 17,000 Tyson workers and former workers in 41 plants and 12 states mainly in the South. Each worker will receive about $1,000 as a result of the settlement. Many if not most Tyson workers are immigrants from Latin America.

The suit charged that Tyson did not pay its workers for the time it took them to put on and take off their protective gear that included such items as special shirts and pants, safety jump suits, safety boots, hair nets, face nets, hard hats, aprons, belts with holsters and knives, and hand and arm protection and for not paying workers for walking to their work stations after donning the gear and walking from their work stations to take off their gear.

Back in 2002, a few years after the suit was filed, Perdue Foods, one of Tyson’s competitors, decided that it would pay workers for donning and doffing safety equipment and for walking to and from their work area. Other companies followed suit, but Tyson gambled that a court would uphold its practice.

But in 2005, Tyson’s position became shaky after the US Supreme Court ruled that employers can’t deny workers pay by making them work off the clock. But it took another six years for Tyson to finally come to terms with the fact that its position was indefensible.

“We’ve already made a change in the way meatpackers pay their workers,” said Hansen. “While this settlement is long overdue, our efforts have ensured that thousands of workers have been paid correctly for years now.”

Workers and former workers at Tyson plants in Alabama, Arkansas, Georgia, Indiana, Kentucky, Maryland, Mississippi, Missouri,
North Carolina, Oklahoma, Tennessee and Texas receive compensation for the work that they were denied pay.

In a statement released after the settlement, UFCW said that “This lawsuit and the new pay practices in the meatpacking
industry are just one way union workers raise standards for every worker in their industry, regardless of their union status.”

You might need a union if. . .

Back in 2000 when Amazon.com customer representatives in Seattle were trying to form a union, the company conducted what the New York Times described as an aggressive anti-union campaign.

A recent investigative report by the Morning Call, the daily newspaper in Allentown, Pennsylvania, may explain why Amazon was so fearful of its workers organizing. According to the Morning Call, which interviewed 20 former and current workers at the Amazon warehouse located in the Lehigh Valley in eastern Pennsylvania, the workers “offered a behind-the-scenes glimpse of what it’s like to work in the Amazon warehouse, where temperatures soar on hot summer days, production rates are  difficult to achieve, and the permanent jobs sought by many temporary workers  hired by an outside agency are tough to get.”

The Call reported that in mid-June an emergency room doctor contacted the US Occupational Safety and Health Administration to report an “unsafe environment” after treating several Amazon workers at the Pennsylvania warehouse for heat related conditions.

After inspecting the warehouse, where temperatures and the heat index soared well over 100 degrees during the summer heat wave, OSHA recommended that Amazon lower the warehouse temperature and humidity and provide hourly breaks. Amazon installed some fans, passed out cooling bandanas, stuck to its two 15 minute-a-day break schedule, and stationed ambulances in the parking lot to treat workers felled by the heat.

Amazon could have made conditions more bearable by opening loading dock doors to let fresh air circulate, a common practice at most warehouses, but citing theft prevention, chose not to do so.

It also could have reduced the unreasonably high productivity rates, difficult to achieve in the best of circumstance. One worker said that before the summer started, his productivity rate was doubled overnight from 250 units per hour to 500 units per hour. Another worker told the Call that she was written up for being “unproductive during several minutes of her shift.” She was fired several days after she fell ill and was taken by wheelchair to an air-conditioned office to cool off.

Workers also told the Call that Amazon relies heavily on temporary workers, supplied by Integrity Staffing Solutions. The temps are led to believe that if they work hard, there is a good chance that they could be hired as permanent workers, but according to the Call, very few temps ever become full-time workers.

One former temporary warehouse employee said he worked seven months before he was terminated for not working fast enough. In his 50s, he worked 10 hours a day, four days a week as a picker, plucking items from bins and delivering them to packers who put them in boxes for shipment. He would walk 13 to 15 miles daily, he estimated, and was among the oldest pickers.

As it turns out, Amazon’s warehouse in Pennsylvania isn’t the only place where Amazon workers face challenging conditions. In 2008, the Sunday Times in the United Kingdom reported that at Amazon’s Bedfordshire warehouse, workers were refused sick leave during the Christmas rush, forced to work overtime, assigned productivity quotas that even a manager described as “ridiculous,” and “set against each other with a bonus scheme that penalizes staff if any member of a group fails to hit a quota.”

When Amazon’s customer service workers tried to organize a union back in 2000, CEO Jeff Bezos told them that they didn’t need a union because “everyone in the company is an owner.” Apparently some of the owners have a little more authority than others.

Unions announce new contracts

Three unions recently announced settlements of major contracts. One has national, another regional, and the third local significance. One was settled after workers voted to authorize a strike, another after a two-week strike, and the third after the union agreed not to strike.

The United Food and Commercial Workers (UFCW) on September 19 announced that it had reached a tentative agreement with three grocery chains in Southern California that employe 62,000 union members. UFCW and Vons, owned by Safeway, Ralphs, owned by Kroger, and Albertsons, owned by Supervalu, reached an agreement after eight months of fruitless negotiations.

Progress toward a settlement began over the weekend after union members voted to authorize a strike, and the union announced that it was canceling the current contract and would strike after 72 hours. A strike in 2003 cost the grocery chains $2 billion.

Most of the workers at these stores are part-timers, but unlike most part-timers, they have an affordable, comprehensive health care plan. The stores’ corporate owners wanted to reduce this benefit, but the union said that the new contract protects it. “We have attained our most important goal, which was continuing to provide comprehensive health care to the members and their families,” said union negotiators in a statement.

The agreement, which still needs member ratification, will serve as a pattern for other retail grocery contracts that cover 28,000 workers in Southern California.

The United Autoworkers on September 16 announced that it reached a tentative agreement with GM. The union did not release details of the four-year pact that still needs member ratification, but did say that the deal protects health care and pension benefits that GM sought to reduce and that as a result of the agreement, the company will bring back some work it shipped abroad and reopen an assembly plant in Spring Hill, Tennessee.

The union, which agreed not to strike so that GM could receive federal assistance in 2009, sought to reclaim some of the concessions that it agreed to in 2005 and again in 2009 when GM was facing bankruptcy. Joe Ashton, vice-president for UAW’s GM department, said that the concessions, which cost each worker between $7,000 and $30,000, helped GM survive the bankruptcy and that GM’s workers played a key role in the company’s return to profitability and should be rewarded for that effort.

The contract makes some progress toward that goal. Workers will receive a $5,000 signing bonus and a better, more transparent profit-sharing bonus.

The union, however, fell short on one goal, which was to make substantial progress toward getting new-hire wages closer to the middle-class wages enjoyed by veteran workers. Currently, new hires make $14 an hour and max out at 16. Bloomberg.com reports that over the next four years, new hire wages will increase to $16 an hour and max out at $19.

Bob King, UAW president said that as long as so many autoworkers remain un-unionized, it will exert downward pressure on all wage settlements. ”The pathway to rebuilding America’s middle class and creating long-term job security for all American autoworkers must include organizing workers at the foreign-owned automakers operating without unions in the United States,” King said  “We stand recommitted to that goal today.”

The new pact will serve as a pattern for new contracts being negotiated with Ford and Chrysler.

Meanwhile, American Federation of Teachers Local 1776  announced that 711 teachers who work at 17 Catholic  Philadelphia-area high schools on September 19 voted for a new contract that ends a two-week strike. Job security was a main concern that caused the strike. The new agreement allows school administrators to hire part-time teachers but not for the purpose of replacing full-time teachers.

Catholic Archdiocese also wanted to discipline teachers based on anonymous complaints and make teachers pay more for their health care benefit. The new contract protects teachers from disciplinary actions based anonymous complaints and freezes teacher health care contributions for the first year of the three-year contract. Contributions will increase in the second year, but the contribution is capped at 11.9 percent. No cap is in place for the third year of the contract, and if premiums rise above 10 percent, changes to the plan could result.

“Our teachers stood strong and solid on the picket lines to defend their jobs, and we are so grateful,” said Rita Schwartz, president of Local 1776. “The negotiation team could not have gotten this agreement if it were not for the commitment and support of our teachers.”

Longshore workers, canal pilots forge international alliance

Earlier this month, members of the Panama Canal Pilots Union voted to affiliate with the International Longshore and Warehouse Union  in the US. “This is an historic agreement that unites workers in different countries with a critical link in the global supply chain,” said ILWU International  President Bob McEllrath. “We want to welcome these union brothers to the ILWU family and look forward to helping each other.”

“We are very proud to become part of the ILWU family,” said Captain Londor Rankin, Secretary General of the Pilots Union which has 250 members. Rankin said the pilots voted overwhelmingly to affiliate with the ILWU. He and other members of the union attended the ILWU’s International Executive Board meeting last week.

Rankin and McEllrath said that the global supply chain is evolving rapidly and that if supply chain workers like the pilots and longshoremen want to maintain and improve their standard of living, they need to form international alliances like the one between these two unions.

“We will learn from the dock workers and they will learn from us, and we will mutually support each other,” Rankin told the Los Angeles Times. “The companies that move cargo are global. We must have the same kinds of alliances and connections.”

“Our affiliation with the Panama Canal Pilots Union will provide a new level of strength and unity for workers in both organizations,” McEllrath said. “Our goal is to hold global companies more accountable to workers and their communities. With so many employers now going global, it’s critical for workers around the globe to join forces and work together.”

The alliances between the two unions comes about three years before the expansion of the Panama Canal is complete. The expansion will enable post-Panamax cargo ships, the world’s largest super cargo ships, to pass through the canal, opening it up as a route option for these ships departing from Asia with goods bound for the eastern half of the US.

Currently, post-Panamax ships from Asia unload at ports in Long Beach, California, Oakland, or Seattle and their goods are transferred to rail or track carriers for the eastward journey.

But transportation companies and the retailers they serve have complained that there are too many bottlenecks along this route. The US Department of Agriculture in a report on the impact that the Panama Canal expansion would have on the supply chain identified one of these bottlenecks as “labor problems.”

One of the labor problems that the USDA likely had in mind was the 2002 lockout of ILWU dock workers by the Pacific Maritime Association, which negotiates labor contracts with the ILWU for port authorities on the West Coast.

PMA in 2002 demanded concessions that would undermine safety and eliminate jobs. When the ILWU balked, PMA locked out the workers. The lockout lasted only ten days before then-President Bush invoked the Taft-Hartley law to end it because retailers like Walmart were complaining that the work stoppage was preventing imported goods from reaching their stores in time for the Christmas shopping season.

After the lockout failed to weaken the workers’ unity and was no longer a viable option for PMA, the two sides agreed to a contract that avoided most of the concessions that PMA demanded.

The expansion of the Panama Canal would provide an alternative route for goods in the event of another work stoppage. But having an ally working on the canal will give the ILWU some bargaining leverage that it might otherwise would have lost.

As for the pilots union, it has its own history of problems dealing with its management, the Panama Canal Administration. It took mediation to resolve a contract impasse in 2004 that lasted for years. Support from one of the US’s most powerful unions will increase its leverage as well.

ILWU has also been seeking alliances with other unions in Latin America. In a message to ILWU members in the September issue of the Dispatcher, the union’s newspaper, McEllrath said, “I want to salute the work being done by our longshore team to help the port workers in Costa Rica and Peru. . . . With so many of our employers going global and attacking dock workers in foreign ports, we can’t afford to sit back while companies try to crush other dock worker unions.”

San Antonio Teamsters fight for health care and respect

Members of Teamster Local 657 in San Antonio have been out on strike since April at the historic Pioneer flour mill. They walked out when health care concessions were demanded by the mill’s owner CH Guenther & Sons, an international privately owned company that operates food processing plants in the US, the United Kingdom, and Belgium.

Workers at the San Antonio mill located at South Alamo and Probandt took the company’s demand for health care concessions as slap in the face that showed how little respect the company has for the dangerous work they do to create value for the company.

“We’re out here to better our lives and our families,” said Tony Diaz, who has worked 25 years at Pioneer. “I feel like the company has cheated us for years. We’re just trying to make it better.”

The Teamsters also want the company to start contributing to the union’s defined benefit pension plan, which helps provide a secure retirement for workers like those at Pioneer, and they want the company to be conscientious in addressing safety hazards at the mill where workers have been seriously hurt and even killed.

When the workers began negotiating a wage increase for the second year of their contract, the company demanded higher worker contributions to their health insurance plan. Workers who have individual coverage not individual and dependent coverage would see health care premiums rise by 20 percent. Everyone would have taken home smaller paychecks.

Most of the workers at Pioneer have only individual coverage, Local 657 business agent Paul Cruz told MySanAntonio.com. “It would impact (these workers) significantly, to the point where they could afford the  premium but not afford the deductibles or co-pays,” Cruz said.

The workers also want the company to help them achieve a secure retirement. Currently, the company matches employee contributions to their 401(k) savings account up to a maximum of $925 a year. Most workers, who make about $14 an hour, can’t afford to contribute $925 a year into their 401(k) plan, so they want the company to contribute the difference between $925 and the amount that the company contributes to their 401(k)s to the Teamster’s defined benefit pension plan.

The strikers have doggedly manned the picket lines through the hottest summer in the history of Texas. They’ve received some support from other unions but would like more.

Members of the sheet metal workers joined the picket line. Staff from the National Nurses United who were on their way to McAllen, Texas to begin contract negotiations and had a four-hour layover at the San Antonio airport rented a van at the airport and joined the strikers on the picket line.

Rank-and-file members of UPS and Union Pacific have refused to cross the picket line, but management personnel from the two companies have been making the deliveries to the plant.

Teamsters have leafletted local grocery stores, food distribution companies, and restaurants to explain the issues in the strike.

Guenther tries to portray itself as a small mom and pop operation just getting by. But it told workers before the strike that it was flourishing despite the slow down in the economy. In addition to the Pioneer brand, which includes flour, pancake, and other flour products, Guenther owns the White Wing and Morrison baking ingredients brands and Peter Pan All Purpose Flour. It also supplies flour to McDonald’s in the US and Europe.

In 2005, it partnered with another food processing company to buy the Golden West Foods in the United Kingdom and now owns mills in the UK and Belgium. In 2008, it acquired Williams Foods, a company that makes dry spices.

It operates food processing plants in Denton and Duncanville, Texas, Knoxville, Tennessee, Prosperity, South Carolina, and Lenexa, Kansas.

The Teamsters have filed unfair labor practices against the company. One involved a supervisor who accidentally shot himself in the leg with a firearm while sitting in his truck near the picket line. Workers said that the supervisor had a history of making racist jokes about shooting Mexicans, which caused the workers, most of whom are Mexican-Americans, to feel threatened by the incident. The National Labor Relations Board did not agree.

Despite this and other acts of intimidation like video taping workers on the picket line, workers expressed determination to win this fight. “We really need to go back to work,” said Loretta Ramirez, who has worked at the mill for 18 years. “But we’re not going back in there until they treat us like human beings, not slaves.”

Egyptian textile workers win pay increases

Workers at a state-owned textile plant in Mahalla, Egypt called off a strike planned for September 10 after representatives of the government met with a delegation of workers from the plant and agreed to increase pay. Workers also wanted the government to commit to increasing investment in the plant to make production more efficient but received no guarantees. Workers are worried that without sufficient investment in plant operations, the factory will continue to lose money, which will make it ripe for privatization.

On September 2, the Egyptian Independent Trade Union Federation, the Center for Trade Union and Worker Services, the local union of workers at the Misr Spinning and Weaving plant, a government-owned business, issued a  list of demands including higher incentive pay, higher meal allowances, increased profit-sharing, and more investment to upgrade plant operations. Workers also wanted a higher minimum wage tied to inflation and the release of pay checks owed to some workers.

The workers issued a public statement along with their demands saying that their goal wasn’t just to improve conditions of the Misr workers; instead, they were fighting to raise the living standards of all Egyptian workers.

The government, which has banned strikes but has been faced with a growing wave of strikes in the public and private sectors, asked to meet with representatives of the workers in Mahalla in hopes of averting a strike. The two sides met on September 8 and after five hours of negotiations reached an agreement that called for a 100 percent increase in the meal allowance, a 200 percent increase in incentive pay for workers, and smaller incentive increases for supervisors and managers.

The Center for Trade Union and Worker Services reports that these increases apply to all spinning and weaving operations and cotton gins and presses throughout Egypt. The higher pay is to go into effect on October 1.

Labor leaders were pleased with the results of their action and its wider implications. “The victory of the workers at the Misr Spinning and Weaving plant will send a message to all waged workers that the weapon of the strike is the only way to win their rights,” said Mustafa Abdul-Aziz, a member of the workers’ negotiating committee.

But there is still some concern among trade unionists and rank-and-file workers that all the problems have not been resolved, foremost being the threat of privatization.

The Mahalla Misr plant is Egypt’s largest textile operation, employing 22,000 workers. It has a production capacity of 5.1 million ready-made swaths of cloth per year, but the plant has been losing money–on purpose say union activists, who think that the plant CEO hopes that the losses will eventually force the government to privatize it.

“Last year our company’s losses reached LE (Egyptian pounds) 144,000 million and this year’s loss has reached LE135,000 million,” said worker activist Kamal el-Fayoumi to Al-Masry Al-Youm, Egypt’s leading independent daily. ”The year before (the CEO) arrived in 2007, we made LE105,000 million, so the loss isn’t our fault. We’re protecting the company.”

Mahalla textile workers have been fighting to improve living standards and protect rights for all workers for a while now. Strikes by Mahalla textile workers in 2006 and 2008 resulted in some improvements and set the stage for the revolution that overthrew Hosni Mubarak. They also played an important role in initiating the general strike that finally toppled the Mubarak regime. All of which might explain why the military government was willing to negotiate rather than ignore their demands.

Hyatt workers strike for safe, decent jobs

Hyatt workers at six hotels in four US cities are nearing the end of an unprecedented, week-long nationally coordinated strike against the giant hospitality chain. The striking workers, who belong to UNITE HERE, want new contracts that give them more protection against unsafe working conditions, better job security, and more respect from their employer.

“I’m on strike because I don’t want anyone to become crippled from this work,” said Angela Martinez, a housekeeper at the Hyatt Regency Chicago, where she has worked for 23 years. “I ask everyone to please respect our boycott. We are hard-working women, not machines.”

At the Hyatt where Martinez works, the company two years ago renovated and upgraded the hotel and its furnishing. Among other things, the company installed larger, heavier matresses, which housekeepers must lift when changing bed linen. Some of these matresses can weigh as much as 100 pounds.  The heavier ”beds make my job much more difficult. I can’t lift the mattress because my left arm feels like it’s coming out of the socket. It feels like it is separating,” Martinez said.

Martinez’s experience is shared by other housekeepers who work for Hyatt. A peer-review study published in the American Journal of Industrial Medicine found that Hyatt housekeepers had the highest injury rate among those who worked in the 50 properties owned by five hotel chains reviewed by the study.

The study also found that the injury rate for hotel workers in general is 25 percent higher than injury rates for other service sector workers.

The lack of job safety isn’t the only concern that sparked the strike. Hyatt has been laying off long-time housekeepers and replacing them with temporary, minimum-wage workers. At three of its non-union hotels in Boston, Hyatt fired about 100 housekeepers, many of whom had worked 20 or more years for the company, and replaced them with workers from a temporary staffing agency. To add insult to injury, Hyatt made the fired workers train their replacements.

“The story of the “Hyatt 100” represents just one example of how Hyatt’s aggressive use of subcontractors is destroying
good jobs,” reads a statement at the UNITE HERE website.  “Using subcontractors allows Hyatt to pay housekeepers poverty wages while evading legal liability for unsafe working conditions or hiring undocumented workers. In Indianapolis, San Antonio and many other cities, Hyatt has continued to expand the use of subcontractors.”

The weeklong strike in Chicago, Honolulu, Los Angeles, and San Francisco is an escalation of the tactics that UNITE HERE has used to break a negotiations stalemate between the union and company over new contracts. The old contracts covering workers workers in Chicago, Los Angeles, and San Francisco expired in 2009; the one covering workers in Honolulu expired in 2010 .

In the past, Hyatt workers have staged one-day strikes. They have also lauched a boycott of 17 Hyatt properties and have led public demonstrations all across North America. Already, Hyatt has lost over $20 million in hotel business as a result of the boycott.

In San Francisco, BeyondChron.org reports that UNITE HERE Local 2, which represents workers at the Hyatt Regency Embarcadaro Center and the Grand Hyatt, is fighting to include language in the new contract that would allow workers to organize and join in solidarity actions, including strikes, when Hyatt management imposes egregiously unsafe working conditions.

Local 2 won similar language in a contract with one of San Francisco’s most prestigious hotels, The Fairmont, and with restuarants at the San Francisco International Airport.

“Hyatt workers are waging a crucial struggle,” says John Wilhelm, the President of UNITE HERE–a union representing 250,000 hotel and other hospitality workers throughout North America. “In the face of widening income inequality and the systematic eradication of the American middle class, Hyatt workers are bravely fighting for the ability to stand up for one another in
contending with a global giant like Hyatt.”

Compromise reached on FAA reauthorization bill

US House and Senate leaders over the weekend agreed to extend temporary funding for the Federal Aviation Administration. The agreement funds the FAA through January 31, 2012 and omits language from an earlier version that would have made it more difficult for unions to organize airline workers.

The agreement in the form of a bill was passed by the House on September 13 and now moves to the Senate.  If an agreement had not been reached, the FAA, which oversees air safety and airport operations, faced another shut down after September 16.

Last spring, Delta Air Lines, the only US airline that is largely un-unionized, lobbied House Republicans to insert a clause unrelated to FAA’s funding in the agency’s reauthorization bill. The language would have changed the standard for deciding whether a union wins a representation election in the airline industry. The current standard requires unions to win a majority of the votes cast, just like all other elections in the US.

Delta and the Republicans wanted to require unions to win a majority of all affected workers, which would mean that a person who did not vote would be counted as a “No” vote.

Republican insistence on this anti-union language caused the bill to fail, shutting down the FAA for two weeks and resulting in the furlough of 4,000 agency workers and 70,000 airport construction workers. It also cost the government $400 million in revenue from airline tickets.

Lawmakers reached the new reauthorization agreement less than a week before the temporary agreement that re-opened the agency in August was about to expire. Republicans agreed to omit the irrelevant, anti-union language because Republican leaders were skittish about taking the blame for another government shut down controversy and because the Communication Workers of America and other unions mounted an effective campaign to win public support for the passage of a “clean” FAA reauthorization bill that omitted the anti-union language of the earlier proposal.

CWA, whose members include flight attendants who belong to the Association of Flight Attendants-CWA, launched its campaign for a clean FAA reauthorization bill in August.

The campaign included rallies, picketing, leafletting at airports, an electronic petition drive aimed at Delta, and a series of actions taken against Rep. John Mica, Chair of the House Transportation Committee, who led the effort to include the anti-union language in the bill.

Last August, CWA held a number of demonstrations in Florida aimed at exposing the role that Rep. Mica and Delta Airlines played in shutting down the FAA. At one of the demonstrations, CWA members while they were walking a picket line at one of Rep. Mica’s Florida’s offices, called the representative by phone and delivered the main message of the campaign: “We want a clean FAA reauthorization bill.”

When Rep. Mica flew into to Houston to raise cash from transportation lobbyists, about 50 CWA members picketed the meeting, chanting, “What’s disgusting? Union busting.”

CWA also established a website containing an electronic petition to Delta’s corporate executives denouncing their anti-union activities and initiated a direct mail and robo call campaign aimed at Rep. Mica’s constituents and the constituents of about two dozen other Republicans whose intransigence caused the FAA shut down.

On the Wednesday before the funding extension agreement was announced, the Association of Flight Attendants, the pilots union, the air traffic controllers union, and the Association of Professional Flight Attendants (APFA) held a media conference at Washington DC’s National Airport.

At the event, AFA President Veda Shook said, “Congress could jeopardize the safety of the U.S. air transportation system and
will risk thousands of airline employees’ jobs by failing to pass a long-term reauthorization bill that focuses on the FAA’s core mission of providing the safest, most efficient aviation system in the world. We cannot allow political brinkmanship to again trump the safety of the flying public or the jobs of hard-working Americans.”

After hearing that an agreement had been reached, Candice Johnson, CWA communications director said, “The clean nature of this extension is a welcome development in that it will prevent another FAA shutdown and will not place people’s lives and jobs beneath John Mica’s and Delta Air Lines’ ideological, union-busting agendas.”

FAA funding reauthorization will come up again in about four and one-half months when this temporary funding extension expires.

Longshore workers’ right-to-work battle intensifies

Hundreds of longshoremen in the Pacific Northwest temporarily stopped a train headed for the EGT grain terminal at the Port of Longview, Washington as the workers battled for their right to work at the terminal.

Police in riot gear charged the demonstrators, and temporarily detained Bob McEllrath, president of the International Longshore and Warehouse Union. The action took place on Wednesday, August 7 and was the first time since workers blocked another train headed for the terminal in July that an attempt was made to deliver grain to the new terminal.

“EGT’s attempts to undermine the entire grain industry inspired everyone to give up our wages today to support the Longview workers,” Brad Clark, president of ILWU Local 4 which represents longshoremen in nearby Vancouver. “We are sending a message to EGT’s foreign owners that they need to stop their attack on the American grain industry and respect the standards everyone else follows to protect worker safety and working conditions.”

EGT, a multinational company jointly owned by companies in South Korea, Japan, and the US, and ILWU Local 21, which represents Longview longshore workers, are locked in a dispute over the company’s refusal to abide by its contractual obligation to staff its new state-of-the-art grain terminal at the Port of Longview with Local 21 members.

Additionally, ILWU is concerned about the lack of safeguards at the highly automated terminal that put worker safety at risk. Grain terminals are very dangerous places to work, and if the safety concerns are not addressed, the union fears that the unsafe conditions at the EGT terminal will become the industry-wide standard as new grain terminals are built.

The blocking of the 107-car, mile-long train began in the morning when longshoremen from up and down the Pacific Coast gathered on the rail tracks after receiving word that a Burlington Northern Santa Fe train containing a grain shipment would arrive at the EGT terminal.

The union had stopped a similar shipment in July, and no other grain deliveries have been attempted since. Local 21 has been picketing the terminal.

The train arrived early in the morning and stopped when it saw the longshoremen and supporters on the track. Police in riot gear rushed to the scene to disperse the workers, who stood their ground. A brief scuffled between police and union members broke out when the police tried to arrest McEllrath.

Police temporarily detained McEllrath, but released him when workers protested, and the situation grew tense between the two sides.

The workers’ blockade shut down all train traffic to the Port of Longview and other ports in the Pacific Northwest, but by noon, the workers agreed to allow other trains to proceed if the grain car was parked on a side rail and did not attempt to make a delivery.

The standoff lasted until about 7:15 p.m. when a labor blog called  The Strand  reports that McEllrath told members, “You can get maced and tear-gassed and clubbed (today) or wait for longshore support from all over the West Coast when the next train tries to enter the EGT terminal. If we leave here, it doesn’t mean that we gave up and quit. It means we’re coming back.” Police arrested 16 workers who refused to leave the tracks and three earlier in the day charging them all with trespassing.

The Yakima Herald reports that on the next day, “hundreds of Longshore workers stormed the (terminal), overwhelmed guards and dumped grain.” Leal Sundet, Coast committeeman for the ILWU Coast Longshore Division, however, said that “EGT has employed a professional strike breaker and a labor provocateur to manufacture trouble during peaceful protest, but they can’t change the fact that longshore workers are simply wanting to go to work and do their jobs.”

Over the weekend, ILWU workers received statements of support from the International Longshoremen’s Association, which represents longshore workers on the East Coast, and the International Transportation Federation, a worldwide confederation of transport unions.

“The ILA condemns this aggression against union workers seeking to protect the work that they have performed for over 80 years in the Port of Longview,” said ILA President Harold J. Daggett. “They were peacefully protesting the failure by big grain companies to honor ILWU agreements. I stand with ILWU President (McEllrath) in proclaiming: ‘It shouldn’t be a crime to fight for good jobs in America’.” Daggett said that the ILA would offer any help it could “to make certain ILWU members rights and jobs are protected.”

Meanwhile, the National Labor Relations Board sought an injunction that would halt picketing at the terminal. On Thursday, the judge ruled that picketing could continue with limited numbers. ILWU called the ruling a victory for free speech.

“Union members are pleased with the outcome (of the court hearing) even though they are smarting from false allegations of hostage-taking that were spread in the media throughout the day, an outright lie intended to discredit the union and its
struggle for good jobs for the community,” Sundet said.

Paper company files for bankruptcy; corporate greed plays a role

Residents of working-class communities in six states reacted nervously to news that NewPage, the nation’s largest coated-paper manufacturer, on September 7 filed for Chapter 11 bankruptcy. The United Steelworkers, which represents NewPage’s unionized workers, said that it would seek a seat on the Creditor’s Committee to protect workers’ interest during the bankruptcy proceedings. NewPage, which employs about 6,000 people in the US, is owned by Cerberus, a private equity company that owned Chrysler when it declared bankruptcy in 2009.

The bankruptcy judge allowed NewPage to borrow $600 million from JP Morgan Chase so that it could  continue operating its eight paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, and Wisconsin while the company seeks to restructure its $2.6 billion bond debt, most of which was incurred as a result of Cerberus’s 2005 leveraged buyout of the company. The company plans to sell another mill it owns in Nova Scotia.

United Steelworkers International Vice-President Jon Geenen said that “USW is not surprised by the announcement as the union has been closely monitoring performance of the company the past year.”

The company blamed its bankruptcy on foreign competition and declining demand for its product, but corporate greed and mismanagement seem to be even bigger culprits. In order to meet its heavy debt obligation and generate unrealistic profits that Cerberus promised investors, NewPage management committed serious blunders.

Yves Smith writing in Naked Capitalism said that ”Cerberus set (NewPage’s) return on  invested capital targets that were, to put it politely, audacious (and according to Smith, unlikely to be attained) for the paper industry,” and to meet these targets, NewPage scrimped on maintenance and repair of its machines, which resulted in a decline in the quality of its product, the shiny paper that appears in magazines and advertising flyers.

At the same time it was neglecting the mills that it already owned, Cerberus bought and shut down six other US paper mills owned by a Finnish company to dampen supply and drive up the price of its paper. Gregg O’Brien reports in Cape Cod Today that at least two of the shut mills in Wisconsin, one in Niagara and the other in Kimberly, had two interested buyers, but Cerberus refused to sell them. The shut downs cost Niagara, a town of 1,800, 319 jobs and Kimberly 600.

But the company’s strategy to drive up prices didn’t work. For the last five years, NewPage has failed to return a profit. In the first quarter of 2010, it lost $175 million. It did a little better in the first quarter of 2011 but still lost $88 million. Then in the second quarter it lost $132 million.

The company’s dismal track effort, however, didn’t preclude it from richly rewarding top executives who left the company. Thomas Curley, who served a scant four months as CEO before resigning to spend more time with his family, received $1.1 million in severance pay and a $165,000 performance bonus. Board chair Mark Suwyn received a $2 million golden parachute, and senior vice-president for marketing, strategy, and general management Mike Marziale received $650,000 in severance pay and a performance bonus of $243,000.

Meanwhile, NewPage workers and the communities where they live are nervous but hopeful that their jobs will still be there after the bankruptcy dust settles. One thing that gives them hope is that the demand for the coated paper that they produce has rebounded a bit after slumping.

“The economy was not good in 2009 and we easily matched our customers’ demands, which required us to stop production for short periods of time,” said Janet Hall, human resources director at NewPage’s plant in Rumford, Maine, to the Auburn/Lewiston Sun Journal. ”That isn’t the case now and we are even bringing in new hourly employees this week.”

While NewPage workers keep their fingers crossed about their jobs, the bankruptcy filing doesn’t seem to have harmed Cerberus much; in fact, it seems to be doing quite well. Peter Lattman reports in the New York Times Deal Book that “after being battered during the financial crisis, and suffering sizable redemptions in its hedge funds, Cerberus has had vast improvements. Among successful investments, the firm has made a killing buying distressed mortgages at the market bottom.”

UTU members ratify rail pact that other unions oppose

The United Transportation Union announced yesterday that its members had ratified a national rail contract by a vote of 60 percent to 40 percent. The new agreement calls for a wage increase retroactive to January 2010 but requires UTU members to pay more for health care.

“The 17 percent wage increase over the life of the agreement is significantly higher than the rate of inflation,” said Mike Futhey, UTU president. Futhey also said that the health care provisions of the contract cap worker contributions to the health care premium at $200 a month until July 2016. “With health care costs continuing to rise, this cap will be even more extraordinary in each successive year of this contract,” Futhey said.

The National Carriers’ Conference Committee (NCCC), which represents the nation’s largest rail carriers in negotiations with UTU and other rail unions, was also pleased with the contract and announced shortly after the tentative agreement was reached in June that the pact was a contract pattern for other union negotiations.

But 11 unions representing other rail workers rejected NCCC’s assertion because the wage increase was inadequate given the railroads’ profitability record and because the health care concessions negotiated by UTU significantly increase health care costs for workers.

“What has unified nearly all of rail labor is the (NCCC’s) assertion that the . . . tentative agreement with the United Transportation Union (UTU) sets the pattern for an industry-wide agreement,” reads a statement by the International Brotherhood of Boilermakers on its website.

According to the Boilermakers, the wage increase negotiated by UTU is only 14 percent during the five-year term of the contract because the other 3 percent becomes effective only in the year after the contract expires, and the increase, which amounts to a little more than 2 percent a year, is short of the increase unions won in the last five-year contract.

The smaller wage increase comes at time when rail profits have grown substantially from $15.9 billion in constant 2009 dollars during the five-year cycle before the previous contract was negotiated to $32.7 billion during the five-year cycle before this contract was negotiated.

But even more objectionable are the health care concessions. According to the Brotherhood of Maintenance of Way Employees Division of the Teamsters (BMWED), UTU’s health care concessions shift more than $250 million in health care costs from “wealthy railroads to the backs of middle-class workers.”

Under the old contract, workers paid no deductibles for health care services. The UTU contract, on the other hand, requires workers to pay a deductible and a 5 percent co-insurance fee for health care expenses above the deductible up to $1,000 a year for individuals and $2,000 a year for families.

BMWED estimates that the new deductible and changes to the plan that limit workers’ medical options will cost “each employee $77.77 per month on average;” furthermore, according to BMWED, agreeing to contract language that shifts more than a quarter of billion dollars in health care costs is ”a slippery slope. Once the railroads get new categories of deductibles, they will push relentlessly to increase them in each subsequent round of bargaining.”

BMWED and the Boilermakers are part of a six union bargaining coalition called the Rail Labor Bargaining Coalition (RLBC) that also includes the Brotherhood of Locomotive Engineers and Trainmen (Teamsters), Brotherhood of Railroad Signalmen, National Conference of Firemen and Oilers (SEIU) and Sheet Metal Workers International Association.

The RLBC had been in negotiations with NCCC since 2010. When the negotiations stalled, the RLBC and NCCC talks moved into a mediation phase as required by the Railway Labor Act. But when UTU and NCCC reached their tentative agreement, RLBC decided to withdraw from mediation and sent a letter to the National Mediation Board, which was overseeing the process, asking the board to release it from mediation, so that the dispute could enter the final dispute-resolution process under the Railway Labor Act.

Five other unions, the Transport Workers Union, IAM, Transport Communications Workers, American Train Dispatchers, and  IBEW, are part of an informal bargaining coalition that also requested an end to mediation.

On the same day that UTU announced that its members had ratified the new agreement, the National Mediation Board announced that it was releasing the unions from mediation.

The unions also rejected the board’s offer of binding arbitration, which means that a Presidential Emergency Board could be appointed to recommend a solution to the impasse, which would settle the dispute if both sides agree. Congress could also intervene, and, if it can come to an agreement, impose a settlement. In the event that neither remedy settles the dispute, a national railway strike is possible.

New documentary describes abuse in LA carwash industry

A newly released mini-documentary, The New American Sweatshop, shows what it’s like to work in a Los Angeles carwash, and the picture it paints is grim. “For too long Los Angeles carwash owners have been allowed to operate in the shadows, abusing and exploiting their workers with little fear of repercussions,” said Chloe Osmer, acting director of the Community-Labor Environmental Action Network (CLEAN). “We are honored to have worked with Robert Greenwald and his team at Brave New Foundation to help bring these abuses to light.”

The documentary gives carwash workers in Los Angeles the opportunity to describe what it’s like to work in a carwash. They tell of a work environment that is dangerous and unhealthy, where workers suffer countless abuses both large and small, and where wage theft is rampant.

Los Angeles has about 500 carwashes that employ 10,000 workers, most of who are immigrants from Latin America. The abuses suffered by these workers caused some to seek help, and as a result, the CLEAN Carwash Campaign was born. The campaign helps carwash workers recover stolen wages and fight other indignities on the job. Its long-term goal is to build a union of carwash workers that bargains collectively over wages and working conditions. The campaign is a joint project of CLEAN and the Carwash Workers Organizing Committee of the United Steelworkers.

One of the main problems that led to the CLEAN Carwash Campaign was the many instances of wage theft in the carwash industry. About five years ago, Los Angeles community groups began receiving numerous wage theft complaints from carwash workers. The community groups sought help from local unions, and the campaign was born.

The campaign helped initiate legal actions against employers like Handy J Carwash. In June, a court ruled against Handy J in a suit brought against the company by a former employee named Tomas Rodriquez, who had worked for Handy J for 16 years. “The court ruled on the unjust and illegal acts that are so common in this industry,” said Matthew Sirolly, Rodriguez’s attorney.

The judge found that the company forced employees to report to work before they could clock in and work after they clocked out and that the company often did not pay time and one-half for overtime work. The court awarded Rodriguez more than $80,000 in lost wages and damages.

In addition to falling victim to wage theft, carwash workers also are forced to work with dangerous chemicals. One worker said in the documentary that sulfuric acid is often used to wash the rims of tires, but workers are given no protective gear to shield them from the corrosive effects of the acid.

Female workers are sometimes the victims of sexual abuse. One of the workers interviewed in the documentary described an incident in which she was groped and fondled by a supervisor, who she thought intended to rape her. She was able to avoid rape by fighting back against her attacker.

The workers who told their stories in the documentary hope that the video will shed light on the problems they face every day at work, and they want other carwash workers to know that they don’t have to tolerate abuses at work anymore.

“I want to send a message to all the workers in the carwash industry,” said a carwash worker activist in the documentary. “Do not be afraid of your boss even if he threatens you with deportation, it doesn’t matter. We are human beings and have the right to raise our voices.”

Labor Day 2011; State of Today’s Unions

The following was submitted by Pancho Valdez, member of Laborers Local 1095. Valdez has been active in the movement for justice since 1965. He can be reached at: 210-882-2230 or mestizowarrior210@yahoo.com

Labor Day 2011: State of Today’s Unions

“All that serves labor serves the nation. All that harms labor is treason. If a man tells you he trusts America, yet fears labor, he is a fool. There is no America without labor and to fleece the one is to rob the other.”- Abraham Lincoln

 This past spring the nation witnessed an attack on organized labor unlike any other in the past 30 years. Public workers in Wisconsin, Illinois, Ohio, New Jersey, Missouri, Michigan and Minnesota have been made the scapegoat of their state’s economic crisis which is as phony as a three dollar bill given the fact that the crisis was not only caused by Wall Street, but also profited Wall Street as well. Another major factor to our nation’s economic woes that seldom is mentioned is the huge war budget wasted on the unjustified wars in Afghanistan, Iraq and now Libya.

Workers belonging to such unions as the American Federation of State, County & Municipal Employees, the American Federation of Teachers, the National Education Association and the public sector division of the Communications Workers were the target of a well planned, vicious assault by the Tea Party and other Republican extremists using the falsehood of “balancing the state budgets”. As was shown in Wisconsin and elsewhere the real reason for the anti-union attacks was to weaken and/or destroy public worker unions and their right to collective bargaining. The state budget of these states not unlike the state budget of Texas could have been balanced by means of taxing the profits of large corporations and the incomes of the wealthy. Of course such a move requires that state legislators to have courage and the wisdom to do so. As has been shown, most elected officials lack these essential qualities!

In light of a concerted attempt to weaken or destroy public sector unions we must take into account the percentage of organized workers in the private sector, which is now around a dismal 7%! With such a low number of organized workers it is very clear that the working class of the U.S. is in for more hard times. When one sees the small percentage of private sector workers that are organized, one must ask; Why? There are several pertinent factors for this. 1) Many (if not most) jobs in the basic industries such as auto, steel, electrical appliances, garment, shoe and rubber have been off shored to such places as S. Korea, China, India, Pakistan, Mexico, Costa Rica, Haiti, Honduras and other Third World countries. The number one factor for this is cheap labor, weak or controlled unions even weaker than the U.S. trade unions or labor laws that are seldom enforced by right-wing governments friendly to the U.S. and the corporations. 2) Another factor that comes to play a vital role in keeping the U.S. labor force non-union is the fact that under current labor laws, employers have had a free reign to harass, intimidate and fire workers who expressed interest in organizing. Along with weak enforcement of vital labor laws, other laws passed in the late 1940’s and early 1950’s forbid unions from engaging in such militant acts as sit-down strikes, secondary boycotts and other effective tactics utilized by the CIO during the 1930’s when the American labor movement had it’s greatest growth. It could be said with accuracy that U.S. labor unions grew at a faster rate when we had no federal laws to “protect” us as compared to today with laws in place!

One other major factor is the fact that today’s labor unions appear reluctant to use strikes as a means of offensive strategy. In the past decade labor strikes have averaged only 20 per year as compared to 350 per year in the 1950’s. While I have yet to see or hear any official reason from labor leaders for this decline in strikes, my guess is that the use of strikes has been put on hold due to weak enforcement of labor laws which basically give employers an open door to replace strikers with scabs ( common word describing strike breakers). One factor that should be discussed is the mindset of “cooperation” that was prevalent in the middle 1970’s and early 1980’s. This way of thinking promoted “labor peace and harmony” as a means of settling contractual disputes. I can remember several unions that were big on this idea that included the United Steelworkers, the United Autoworkers and the Transport Workers Union, a public transit and airline industry union. This absurd policy resulted in weaker contractual gains, demoralized memberships and did not prevent employers such as Ford, GM, United Steel, Bethlehem Steel from shutting down mills and factories in the U.S. and moving operations to the aforementioned Third World countries. At the time of this revolutionary concept labor leaders were counting on bosses not to de-certify unions, or shut down operations. It doesn’t take a PhD. in Industrial Relations to see that such a lame idea puts workers at a distinct disadvantage and gives employers the signal that it’s ok to do whatever it takes to cut down labor costs! Anytime a labor organization goes into negotiations from a point of weakness, quite naturally the employer will go on the offensive and attack without mercy! In an attempt to impress upon the employers, the news media and the government that labor believed in the concept of “what’s good for GM is good for America” it weakened itself into the present day situation.

One is probably asking; why would any competent labor leader ever agree to such nonsense? The reason is quite simple. When worker’ organizations fail to see or comprehend the difference between the interests of capital and the interests of labor there will be serious errors made and grave consequences to face. This failure on the part of organized labor’s true role is the direct result of the shameful purge of communists and socialists from labor’s ranks during the McCarthy era. Without the presence of strong working class ideology organized labor opened itself up to be used and abused by the ruling class. It also gave a free ticket to social democrats to assume “leadership roles” and reward themselves to lucrative salaries for themselves, their friends and relatives. Such corruption along with mob control of many local unions of the Teamsters, International Longshoremen’s Association, some local unions of the Hotel & Restaurant Employees, the Laborers International Union and others resulted in sweetheart deals and reduced the organizations to being merely “paper tigers!” While employers prefer NO union at all, they will settle for one that is mob controlled as the workers have no democracy in these organizations. Sweetheart agreements are about as good as it’s going to get and even in local unions not corrupted by the mob, workers ownership of their unions was taken away as union leadership chose a top down approach in running their organizations. When workers have little if any control over their unions, participation is very shallow and in the event of an employer turning on its workers, the members are ill prepared for an effective and successful defense.

Today’s labor organizations have become far too dependent on utilizing attorneys, mediators, arbitrators and administrative hearing to resolve disputes. Gone are the times when a group of workers would engage in old-fashioned “get in your face” tactics. While labor and governmental bureaucrats along with attorneys are all in favor of this change of strategies, it does nothing to build a strong and militant labor movement in the U.S. Many younger workers today are reluctant to join a union  not willing to fight for it’s members.

While organized labor in the U.S. has its flaws, it would be unfair to describe only those without mentioning its strengths. Within the past 30 years the AFL-CIO has begun supporting the call for progressive immigration reform. The labor federation has learned that many of the immigrants from Mexico and other Latin American nations have extensive labor and political experiences that make them good union activists here in the US, undocumented factory, building service, meat processing and hospitality industry workers have all stepped  up and joined organizing campaigns with some degree of success. Other areas where organized labor has shown willingness to open up and become more progressive are in the areas of women trade unionists, African-American, Asian American and Latino trade unionists as well as an organization for gay and lesbian trade unionists.

Before viable solutions to this present day situation are discussed, it is important to know that not all labor organizations fall into the above mentioned categories. In San Antonio and across the nation UNITE HERE is organizing hospitality workers and has no problem using mass picketing as well as civil disobedience to protest unsafe and unfair working conditions. Unions like the independent United Electrical Workers and the west coast International Longshore & Warehouse Union  (ILWU) are examples of two left led labor organizations that also use much more militant and confrontational tactics with a great deal of success. Recently the ILWU locals  in Oakland and San Francisco refused to unload cargo that was from Israel in a show of solidarity with the struggle of the Palestinians in Gaza! This is reminiscent of their refusal to unload or load ships either from or headed to S. Africa during the struggle against apartheid. The UE is the union that got national attention when it took over a small factory in Chicago when workers were laid off without proper notice and denied their pay. At that time even the president expressed support for these workers who through their action received the unpaid checks and the factory was reopened with a new owner making a different product.

A more recent and surprising development is the AFL-CIO participating and helping to organize May Day events across the nation. May Day was abandoned as the official Labor Day in the height of the McCarthy era to appease right-wing politicians who were hell bent in destroying anyone with Left wing tendencies.

While all is not where it could or should be within the American labor movement, it has progressed since the days of George Meany who bragged that he never walked a picket line! Meany was also against racial equality and a big proponent of the Vietnam war.

There are solutions to help improve the situation within the labor movement which would include assuring that all affiliated local unions are democratic whereby workers have the right to approve or disapprove contractual agreements. Workers should also have the right to run reform candidates without fear of beatings, killings, expulsion from their union and retaliation from their employers.

Another major reform idea would be for the labor movement to seriously begin working on organizing and building a worker based political party as a viable alternative to the Democratic or Republican parties. This party would include civil rights, civil liberty, environmental, gay and lesbian, peace activists and others who feel disenfranchised from the electoral system as both major parties are controlled by corporate bribes disguised as “campaign donations.” An important factor of this new party would be full support and adherence to our nation’s Constitution.

Another change would be for organized labor to depend less on federal agencies, attorneys, arbitrators and mediators to resolve disputes. Adoption of the proven and far more militant tactics of the CIO are in definite order. Laws and regulations designed solely to protect the interests of the bosses should be ignored and broken whenever possible. A union that is afraid to fight is a union that does not deserve to collect dues from its members!

A step in this direction will help make the U.S. trade union movement a force to be reckoned with by elected officials and employers alike. It may sound like wishful thinking, but it can be done. Doing it depends on our willingness to make it happen!

-Pancho Valdez

Nurses tell Congress, make Wall Street pay

About 10,000 nurses and community supporters took part in actions in 21 states urging members of Congress to help heal America by taxing Wall Street. The actions were organized by National Nurses United, which represents 170,000 nurses. Nurses asked Senators and Representatives to support a tax on speculative financial transactions like the ones that in 2008 nearly ruined the economy, leaving millions of American workers without jobs, health care, and hope for the future.

“It’s time for Wall Street financiers, who created this crisis and continue to hold much of the nation’s wealth, to start contributing to rebuilding this country, and for the American people to reclaim our future,” said RoseAnn DeMoro, NNU executive director.

The nurses told the 61 members of Congress who they visited that a small tax on trades of stocks and bonds, credit default swaps, derivatives, future options, and other exotic and risky speculative activity could generate billions of dollars in revenue that could be used to invest in America and put people back to work.

In addition nurses helped out at soup kitchens to feed the hungry and homeless and held community speakouts that allowed people to tell their stories about how the financial crisis of 2008 and subsequent recession has affected them.

During their office visits and street actions, the nurses said that after Wall Street caused the crash in 2008 it was rewarded with bailouts totalling $2.4 trillion. If that money had been spent on public investments like repairing the nation’s infrastructure, building new schools, and thousands of other public projects that enhance people’s quality of life, it would have funded 63 million jobs at the national median income level of $39,000 a year.

“Instead we have over 25 million people who are unemployed or underemployed, and in the past decade U.S. based corporations added 2.4 million jobs in foreign countries while divesting in America, cutting 2.9 million jobs in the US,” DeMoro said.”

Congress’ generosity toward Wall Street can be partly explained by Wall Street’s generosity toward Congress. One of the representatives visited by the nurses was Rep. Paul Ryan of Wisconsin, the Republican’s point man on the budget. Ryan, according to the nurses has been a champion of Wall Street over the years and during the last 12 years, he received $2.4 million in campaign contributions from Wall Street banks.

Unfortunately, Ryan’s constituents have not benefitted much from his staunch support for Wall Street. In the district that he represents, 69,241 people do not have health insurance, 22,884 are dependent on food stamps, and 20,394 children and 7,939 seniors live in poverty.

In Colorado, the nurses visited Sen. Michael Bennett, a Democrat who collected $2.4 million from Wall Street, and like Rep. Ryan many of Sen. Bennett’s constituents continue to bear the brunt of the fallout from Wall Street’s speculation fueled nosedive. Colorado is among the top ten states in the number of foreclosures, 184,689 of its children live in poverty, 116,941 people are dependent on food stamps, and 13,390 are homeless.

Outside of Rep. Eric Cantor’s office in Virginia, where nurses were met by a squadron of police blocking entrance to his office, NNU co-president Karen Higgins said that the actions today were part of the nurses’ ongoing campaign to heal America by taxing Wall Street. ”America’s nurses every day see broad declines in health and living standards that are a direct result of patients and families struggling with lack of jobs, un-payable medical bills, hunger and homelessness,” Higgins said. ”We know where to find the resources to bring them hope and real solutions.”