Back to the 20th Century?

The President Barack Obama spoke at a recent meeting of the AFL-CIO and after prepared remarks, he responded to a question from AFL-CIO President Richard Trumka. The nub of the exchange was that the President would advise employees to join a union, just as President Franklin Roosevelt did back in the 1930s.

Is that what we need today? Let's examine President Obama's advice by comparing today's workplace with that of the past.

In 1935, the U.S. unemployment rate was more than double what it is now. There were no workplace protections or overtime requirements. The minimum wage law was still a few years away.

Workplace health and safety was something most workers only dreamed about. Discrimination on the basis of immutable characteristics was permitted. There were no legal consequences for workplace harassment.

Employees were not entitled to leave when a loved one was ill. There were no such things as reasonable accommodation or time off when someone was, for example, undergoing chemotherapy treatments.

Instead of thinking their "employees were their most important asset," employers thought workers were fungible. Only the most progressive organizations had employee handbooks, complaint resolution systems, and proactive training for supervisors.

In such an environment, workers turning to a union for representation made tremendous sense. Thus, by 1955, unions reached their high watermark, representing 35% of the American workforce.

Today's workplace is much different. It is highly regulated...some would say the rules are so complex they inhibit job creation. Employers have adopted sophisticated workplace policies and procedures that provide for respect, dignity, recognition, safety, non-discrimination and advancement.

Supervisors receive regular training on proper interviewing techniques and how to embrace diversity in the workplace. Many organizations have "zero" tolerance policies for workplace harassment. Indeed, some company boards require senior officials to resign when their conduct gives rise to serious question.

A variety of federal and state agencies protect employees, for free, as required posters on company bulletin boards advertise. Why pay a union for what is already an entitlement? This does not mean an employer is "anti-union"; it just means the union is irrelevant. Today, not surprisingly, the unionization rate of the private sector is 7.2%.

Indeed, modern workplace disputes between unions and their members may be as common as those between an employer and its employees. Take, for example, the upcoming union election at Kaiser Permanente in California involving 42,000 employees. The question being asked of these workers is whether they want to continue to be represented by the Service Employees International Union or a new union headed up by Sal Rosselli, a former SEIU leader who now heads a new breakaway union. One account says the SEIU may spend up to $40 million in trying to preserve its representation of these members. That's a lot of dues spent on inter-union squabbling!

Do some employers abuse their employees even today? Can a union sometimes constitute a value proposition? "Of course," is the obvious answer.

But that does not mean a union is the "best way" or a "preferred way," or even a "desirable way," of achieving workplace satisfaction. The only people who can answer that question are the employees themselves, preferably through a secret ballot election based on all relevant facts presented in a non-coercive spirit.

"Maybe the President thinks he needs a union," the American worker may say, "but that does not mean I do."

The Mid-Winter Meetings

The American Bar Association is meeting this week in Puerto Rico while the AFL-CIO holds its mid-winter meetings in Orlando.  EFCA and the state of union organizing have drawn the attention of both groups.

Fred Feinstein, former General Counsel of the National Labor Relations Board, spoke at the Bar Association meeting.  He thinks EFCA in a compromised form is still a possibility.  Card check is gone but mandatory arbitration and increased penalties might remain, along with expedited elections.

Mr. Feinstein attributed the delay for passage of EFCA to more pressing items, such as health care, having to take priority.  Since the health care legislation appears to be coming to a climax, it seems that the “health care” rationale for delaying an EFCA vote will no longer justify inaction. EFCA, at least in some form, will have to be brought up for a vote or buried.

The AFL-CIO leadership has been aggressive in their comments about the political environment.  Gerald McEntee, the chair of the Executive Council’s Political Education Committee, told reporters that it is “time to draw a line in the sand” regarding political candidates who generally do not support labor.

As Mr. McEntee said, “If you are not with us, then you are against us.”

The first candidate to feel Labor’s anger is Senator Blanche Lincoln of Arkansas.  She has been one of the Democratic Senators who has expressed concerns over EFCA.  She also joined the Republican filibuster against Craig Becker as a potential appointee to the National Labor Relations Board.

Another Democrat has emerged to challenge Senator Lincoln in an upcoming Arkansas primary, which is a prelude to the Senator’s reelection bid in November.  A variety of unions have already pledged $3 million to Senator Lincoln’s opponent.

The AFL-CIO is planning on surpassing the $53 million they spent in 2008 this coming November.  They are focusing on six states, California, New York, Illinois, Nevada, Ohio, and Pennsylvania, for major political activity, especially around Senate candidates like Harry Reid (D-Nev.) and Barbara Boxer (D-Calif.).

We cannot help but wonder where all of this money comes from.  Organized labor has lost another 840,000 members since last year.  Yet the money flows, somehow, from the pockets of union members to their union officials for candidates the AFL-CIO support.

Terry Madonna of Pennsylvania’s Franklin & Marshall College conducted a poll in January.  Mr. Madonna said, “We have seen a decline in support among union members for both Obama and the Democrats…part of it is that unemployment brings low job performance ratings, no matter what the party.  And less enthusiasm means that union members are less likely to vote.”

This has to be of considerable concern to politicians who count on labor not only for financial support but also for the active involvement of union members in their campaigns.  Perhaps this is why Vice President Joe Biden appeared earlier this week at the AFL-CIO meeting in Orlando.  He, too, kept EFCA in play, saying that the Administration was still committed to its passage, at least in some form.  Secretary Solis gave the audience reason to expect a recess appointment for Mr. Becker, perhaps as soon as the end of March.

But privately, labor officials have to question whether any legislative change to the National Labor Relations Act is still possible.  After all, if the Senate will not approve Craig Becker as a member of the National Labor Relations Board, the probability that EFCA proponents can muster sufficient support to amend the National Labor Relations Act must be considered remote.

Robert Haynes, the president of the Massachusetts AFL-CIO, said, “We are demoralized…we are not happy about anything.”

We admire Mr. Haynes for his candor.

Another reason for labor’s demoralized status should be that the public’s opinion of unions is declining.  The Pew Research Center for the People, in a poll released on February 23, said that only 41% of those responding had a favorable view of unions, down from 58% in 2007.  A 17% plummet in approval ratings over a two-year period should trouble any thoughtful individual.  

But the Administration presses on.  Last Friday, the New York Times reported that different departments within the Administration are preparing regulations for federal government contractors that could boost the fortunes of unions.  While the specifics have not been released, some reports suggest that high-paying contractors (such as those with union contracts) will be given an edge, while contractors with labor and environmental violations will be disfavored.  Unions have been urging the Administration to utilize its procurement power to enhance labor’s position.  We will monitor those developments carefully and be closely involved in efforts to check any unwarranted uses of government power in this regard.

And what is Andy Stern up to these days, you may ask?  The President has named him as a member of the Deficit Reduction Panel.  Representative Darrell Issa (R-Calif.) believes the appointment is “irresponsible.”  Representative Issa’s House and Oversight and Government Reform Committee has just issued an extensive report detailing the relationship between the SEIU and ACORN.  In what direction does Mr. Stern hope to take the Deficit Commission?  Perhaps he discussed this with Administration officials during one of his 28 visits to the White House since the current Administration took office.
 

The White House: Labor Leaders' "Home Away From Home"

 

Last week we told you that “Organized Labor certainly has the ‘ear’ of this Administration.”  We didn’t know how right we were.

On Friday, the Obama Administration published a partial list of visitors who have visited the White House.  Andy Stern, President of Service Employees International Union (SEIU), visited 22 times, more than any other single individual on the list.   Additionally, newly-elected President of the AFL-CIO, Richard Trumka, visited 7 times.

There is no doubt that Vice President Biden meant it when he said to a group of Labor leaders only 10 days after President Obama’s inauguration “Welcome back to the White House!”

 

 

 

Big Labor Gaining Ground with "Friends" in White House

 

Bloomberg.com reporter Holly Rosenkrantz believes things have been “looking up” for Organized Labor.  Rosenkrantz’s October 29 article cites several recent victories for Labor, including newly imposed federal tariffs on tires produced overseas for U.S. manufacturers, free trade agreements being put on hold and a potential rule change making it easier for airline workers to organize.  Despite the apparent differences among these victories, Rosenkrantz argues that there is a “common thread” linking them together — President Barack Obama. 

Rosenkrantz stated, “Organized labor is gaining momentum under the Democratic administration of President Barack Obama.”  University of California at Berkley Professor Harley Shaiken is quoted as supporting Rosenkrantz’s position, stating that “[a]fter eight years wandering in the wilderness, unions have unprecedented access to the White House.”  Further, AFL-CIO’s newly elected President, Richard Trumka, says he “meets monthly” with President Obama, and White House Spokesperson, Tommy Vietor, said Administration officials meet with labor leaders “frequently.” 

One thing is clear: after spending a record $450 million during the last election cycle, Organized Labor certainly has the “ear” of this Administration.

While she admits that Labor’s most important goals, EFCA and government-run health insurance, “remain[] in doubt,” Rosenkrantz observes that unions continue to “make[] other gains through executive orders, rule changes and appointments.”

One of this Blog’s authors, Michael J. Lotito, is quoted in the article, reminding us that despite the gains labor already has made, “[t]here is going to be a flurry of labor action down the pike.”

We welcome your thoughts.

Follow the Money

When Change to Win left the AFL-CIO in 2005, 35% of the labor federation’s revenue left with it. Despite this, Labor provided massive, unprecedented support for political purposes in the last two election cycles. The investments have resulted in a “worker friendly” Congress and White House.

But there are negative results for Labor as well. The Machinists union issued a report in June showing the AFL-CIO’s net assets have fallen to a negative $2.3 million in June 2008 from a positive $66 million in July 2000. Do not count on this uncomfortable fact being discussed openly in Pittsburgh.

In addition, Greg Junemann, President of the IFPTE, decided in July not to run for Secretary-Treasurer of the AFL-CIO, in the name of “unity.” After meeting with Richard Trumka, Mr. Junemann’s goal of returning the AFL-CIO to financial stability would now be achieved with a membership in the AFL-CIO finance committee.

So how will the AFL-CIO help itself financially? Like any other business, it must reduce costs, increase revenues, or both.

Which brings us back to EFCA. To increase revenues, unions must increase membership. To do that, they must find an easier and faster way to organize and get first contracts with mandatory union dues payments as a condition of employees maintaining their jobs.

Failing that, unions will not be able to support their favored politicians in 2010 and 2012. And this is why EFCA is not dead. It is just lurking in ambush. The financial interdependence of Labor and legislators creates a compelling environment for a deal.
 

The Kennedy Legacy

Caroline Kennedy spoke about her late uncle Ted to the AFL-CIO convention on September 14. Most appropriately, the late-Senator Edward M. Kennedy was recognized for his consistent support of Labor over his decades of service.

According to Senator Tom Harkin (D-IA), Labor narrowly missed getting its greatest prize – EFCA – as a result of Senator Kennedy’s battle with cancer. Senator Harkin claims that a “EFCA compromise” was reached in July and was ready for a vote, but Senator Kennedy was too ill to participate in person.

Where are we today with EFCA? The AFL-CIO’s John Sweeney told BNA, “we’ve been doing a lot of work behind the scenes…” with Senators to gain EFCA’s passage.

Bill Samuel, the AFL-CIO’s legislative director, has spoken of a “compromise” where fast elections and majority sign up recognition under certain circumstances would be appropriate.

Labor Secretary Hilda Solis spoke strongly in favor of EFCA during her AFL-CIO convention speech.

Senate Majority Leader Harry Reid (D-NV), who a few weeks ago, said EFCA would not come up this year, told the union convention by video feed that he wants to pass EFCA “swiftly”.

Richard Trumka, citing the need for more aggressive Labor leadership, including the passage of EFCA, has proclaimed that “we need to be a labor movement that stands by our friends, punishes its enemies, and challenges those who, well, can’t seem to decide which side they’re on….”

In addition, there are a handful of Democratic senators who are not sure “which side they’re on,” but covet Labor support, or at least its neutrality, as they stand for re-election.

Then there is the empty Senate seat – from Massachusetts. We don’t know whether an appointed or elected candidate will take Senator Kennedy’s seat. The outcome of that issue in Massachusetts has a direct impact on when EFCA will be considered. Even under the most favorable circumstances, without Senator Kennedy, it is difficult to see how Labor can get to 60 senate votes for EFCA, even in its “lite” variety, and no matter what the “compromise” contains. But whenever Massachusetts again has two senators, EFCA will be ripe for serious consideration…..provided, of course, Senator Robert Byrd (D-WV) is healthy enough to come to the Senate and vote for EFCA.

“Every vote counts” may never have been more true.
 

Specter Presents His Version of EFCA Bill at AFL-CIO Convention

This article received contributions from all of the EFCA & Labor Law Reform Blog authors.

U.S. Senator Arlen Specter (D-PA) pulled the curtains off of his revised version of the Employee Free Choice Act during the September 15 session of the AFL-CIO convention. He announced that his version, which he claims will “be totally satisfactory to labor,” will pass Congress this year.

Specter’s version of EFCA does not include the “card check” provision of the original EFCA bill. That provision would require the Labor Board to certify a union anytime it receives signed cards from a simple majority of eligible voters—thus, effectively eliminating the secret ballot election. Instead, Specter would provide for “quickie elections” where the time between the filing of a petition and the date an election is held is reduced significantly from the current period of about 42 days. Specter has not yet disclosed the exact length of time his bill would establish. Some have said it could be less than 15 days. Additionally, the Specter bill would give unions the right to access an employer’s facility if an employer holds mandatory meetings regarding the union election on company time. Specter’s EFCA also would increase employer liability for violations of the National Labor Relations Act to an amount triple that which the Act currently provides.

The mandatory interest arbitration also is revised. The Specter bill still calls for mandatory arbitration for first contracts, but frames the process as “baseball style” arbitration. Under this process, the arbitrator reviews the “last best offer” from the employer and the union and chooses one. Don’t let the term “baseball arbitration” conjure up positive images of America’s pastime. Baseball style arbitration is nothing more than a form of interest arbitration where terms and conditions of employment unacceptable to the owner of a business are imposed upon that employer by a government arbitrator.

Interestingly, during the convention, Senator Specter seemed to imply that incoming AFL-CIO president, Richard Trumka, signed off on his new EFCA bill. However, Trumka has vigorously denied this and insists that the full and original version of EFCA is still on the table and is the version of the bill that he demands be passed.

Let us know your thoughts.

 

AFL-CIO Convention in Progress

Today marks the first day of the AFL-CIO’s quadrennial convention in Pittsburgh. More than 1,000 delegates are expected to be in attendance. They will have their hands full with a packed agenda that includes electing new officers, setting priorities for the federation and debating health care reform, job safety, green jobs, immigration, and the economic crisis, among others. The convention also will be the stage for some top-shelf speakers, including President Barack Obama, Secretary of Labor Hilda Solis, Senator Arlen Specter (D-PA), Speaker of the House Nancy Pelosi (D-CA) and Senate Majority Leader Harry Reid (D-NV). Outgoing AFL-CIO President, John Sweeney spoke to the delegates on September 13. Each attendee will receive a copy of a report (pdf) discussing the state of the federation and some of the major events that have occurred during the last four years.

Candidates for the federation’s three top offices are running unopposed. It is widely expected that Richard Trumka, the federation’s Secretary-Treasurer, will be elected President. Elizabeth Shuler, executive assistant to the president of the IBEW, is running for Secretary-Treasurer, and Arlene Holt Baker, the federation’s Executive Vice President is running for re-election to the same post.

Each day of the week-long convention will have its own theme. Day One will focus on organizing and politics. It is expected that the federation’s top legislative priority, the passage of EFCA, will be discussed. 

The second day is devoted to debate surrounding health care reform and will include an address by President Obama. 

The third day’s theme is “the power of many” and will focus on diversity, civil and human rights. 

On the last day, the delegates will set the goals for the international union movement towards the G-20 summit coming to Pittsburgh later this month.

Two people are notably absent from the gathering. One is Andy Stern, who just last week saw the Carpenter’s Union withdraw from his Change to Win Coalition. It will be interesting to see how much time, if any, is spent by the AFL leadership on bringing the labor movement together and if they extend any olive branches to Mr. Stern. Similarly, it will be interesting to see if Mr. Stern goes out of his way to recognize Mr. Sweeney for his past leadership and to congratulate Mr. Trumka as he takes the reins of the AFL-CIO. 

The other absent party is Senator Tom Harkin (D-IA). Will the Convention go out of its way to congratulate and recognize Senator Harkin for his new position as chair of the Senate HELP committee and what will his reaction be to the EFCA discussions?

The key to the convention’s impact on EFCA will be how firmly the President supports some version of the bill. The same goes for Arlen Specter, who is such a crucial part of the labor reform debate. It will be interesting to see if any of the speakers discuss the composition of the current Labor Board and the Obama nominees.

As always, we will keep you posted … stay tuned.

Reflections about the new AFL-CIO President

A Washington Post article published on Labor Day casts some light onto the AFL-CIO’s next president Richard Trumka. Trumka comes from a long line of coal miners in Pennsylvania. After working in the mines himself, he attended college and then Villanova law school “in preparation for a career of union activism” where he was class mates with Michael J. Lotito one of this blog’s authors. Upon graduating, Trumka began his career in organized labor as an attorney with the United Mine Worker’s union and worked his way up to become its president. Years later, Trumka eventually took the number two position in the AFL-CIO.

The article refers to the 1989 Pittston Coal strike as Trumka’s “crowning achievement.” We are unclear how Trumka measures the success of a strike, but his crowning achievement resulted in a court ordered injunction being levied against his union, his union officials being held in contempt of court and his union being fined more than $30 million dollars for strike related activities. Moreover, some of his strikers engaged in truly abhorrent behavior during the strike which included multiple episodes of violence towards company personnel and their property, a shooting and even a bombing.

The article also talked about Trumka’s agenda and plans for the labor movement. Trumka reportedly met with President Obama and current AFL-CIO president John Sweeney on Labor Day to discuss that “after being elected in part because the AFL-CIO [sic] persuaded its more skeptical members to vote for him, Obama should not disappoint [AFL-CIO] by settling for half measures.” Indeed, the article refers to AFL-CIO’s disappointment with the current status of EFCA which was described as “bogged down amid a distinct lack of enthusiasm from Obama.”

The article notes that “Trumka’s ascent represents a true changing of the guard, ushering in a time of leadership that will be far more muscular than that of the avuncular Sweeney.” Referring to himself in the third-person, Trumka said “It’s true that he’s more aggressive than Sweeney was…but I think that there is a time when you have to be aggressive and only can take so much, when you’re getting it from people who are not looking for a way to resolve a problem but are looking for a way to kill the labor movement.”

Trumka sent a clear message to politicians who accepted organized labor’s support when he said “[m]ore than ever, we need to be a labor movement that stands by our friends, punishes its enemies and challenges those, who, well can't seem to decide which side they’re on…I’m talking about the politicians who always want us to turn out our members to vote for them, but who somehow always seem to forget workers after the votes are counted.”

Lest we forget, Trumka is the person who defined a corporate campaign, a “top down” pressure tactic used by unions to get companies to concede to union wishes, as a device that “swarm[s] the target employer from every angle, great and small, with an eye toward inflicting upon the employer the death of a thousand cuts rather than a single blow.” It is important for the public to know that the new aggressive head of the AFL-CIO whose crowning achievement was a violent and lawless strike , believes in punishing those he classifies as the labor movements enemies and advocates the slow torture of employers in the hopes of causing their economic death. It is tough for employers that are being subjected to a union imposed economic death to “create jobs” and hire more employees. So much for unions trying to help revive our economy and create new jobs.

What are your thoughts about Trumka and the potential impact he will have in shaping Labor Law reform?