Working In These Times

Wednesday, May 23, 2012 • 1:08 pm

Railroad Workers Convene to Shake Up Unions

By Mike Elk

CHICAGO, ILLINOIS- Last year, over 92,000 railroad workers represented by 11 different unions agreed to a series of concessionary contracts, while the four largest railroad companies collected $8.5 billion in profits.

The problem: Railroad unions are typically forced into concessions because the federal government holds the power to step in and stop railway strikes. Therefore, individual unions often race to make their own deals, hoping that settling quickly will allow their union to negotiate a slightly better deal with the railroads.

It’s a disheartening situation for union members, which is why, in 2008, several railroad unionists joined to form Railroad Workers United (RWU), a cross-craft association of workers from over 17 different unions. Together, RWU members planned to challenge the often top-down structure of railroad unions, which they felt hindered their ability to fight against rail companies. RWU is a small, volunteer-run organization with a budget of only a few thousand dollars and about 200 members who pay just $50 in annual dues. But despite limited means, RWU members hope that by serving as the voices of dissent in their unions, they can bring about positive changes that will ultimately lead to improved working conditions.

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Tuesday, May 22, 2012 • 2:32 pm

At Paris Hospital, Workers Skeptical of New Socialist President

By Mike Elk

A vandalized poster showing French Socialist presidential election victor Francois Hollande. (Photo by Sean Gallup/Getty Images)  

PARIS, FRANCE—Many French trade unionists rejoiced over the defeat of the former conservative President Nicolas Sarkozy by Socialist candidate Francois Hollande earlier this month. Under Sarkozy, public sectors unions were hit with increased privatization of public services and the denial of a cost-of-living adjustment. Sarkozy also vilified labor unions, blaming them for many of the country’s economic woes and the decline of France’s education system.

"In electing Hollande yesterday, the electors chose a presidential candidate who during the campaign had a strong discourse on the necessity of bringing together all French people, whatever their cultural or social origins,” read a statement released shortly after the election by the French Democratic Confederation of Labour (CFDT), France’s largest trade union federation. “He's also the candidate who clearly announced his desire to create a dialogue with social partners, notably organized labor... . The CFDT hopes to take part in this approach.”

French trade unionists now find themselves in a position similar to that of American trade unionists when Obama was elected four years ago—hopeful for change, but skeptical at the same time. In the midst of economic recession, French trade unionists are excited about Hollande’s pledge to lower the retirement age back to 60, tax the rich, and put penalties on profitable companies that lay off workers. Hollande also vowed to renegotiate austerity pledges made by France under Sarkozy.  

Some public sector workers in France are worried, though, that Hollande will come after them in an attempt to reduce deficits. Last week, Hollande met with German Chancellor Angela Merkel, who is pushing austerity in Europe, and agreed to find a common approach to control debt and encourage growth—a move some interpreted as a sign that Hollande would be embracing the "austerity lite" program that countries across Europe have adopted in response to the debt crisis.  

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Tuesday, May 22, 2012 • 10:17 am

Will More Austerity Work for Ireland?

By Kari Lydersen

In wind-swept rocky coastal farming villages on Ireland's west coast, signs urge a "no" vote in the upcoming referendum on whether to accept European Union austerity measures.   (Photo by Kari Lydersen)

ALLIHIES, IRELAND—Life appears peaceful and idyllic on the famous green hills above white-capped seas and plunging cliffs on Ireland’s west coast. Woolly sheep graze on impossibly steep slopes; people chat inside prim pubs, walk dogs along ancient stone walls or tend immaculate gardens outside cute cottages. Aside from a scattering of vacant newish McMansion-style homes, there are no obvious signs of the economic distress that has clutched the country since the "Celtic Tiger" economic boom crashed and burned several years ago.

But Ireland is indeed hurting economically, and the country is now center stage in the bitter controversy over how to ease Europe’s economic woes and decide the economic future of the European Union. On May 31, citizens will vote on whether to accept the European Union austerity treaty that played a significant role in recent political upheavals in France and Greece. Proponents say the treaty is essential to Ireland’s economic future, including its ability to get international loans and bailouts and attract private investment.

Opponents, including the Sinn Fein party, say the treaty would curb the country’s chances for economic growth and job creation, and sacrifice Ireland’s independence. "Austerity Isn’t Working – Stand Up for Ireland," read the "Vote No" banners along narrow country roads in coastal villages between the River Shannon and the Berea peninsula. In larger towns and cities in the region like Tralee and Ennis, "Yes" banners saying "Integrity, Stability, Recovery" and "Working for Ireland" far outnumber "No" banners.

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Monday, May 21, 2012 • 4:00 pm

Day-Care and Home-Care Workers Get Ready to Enjoy New Rights in Conn.

By Melinda Tuhus
NEW HAVEN, CONN.—More than 11,000 state-funded day care and home-care workers in Connecticut are now eligible to negotiate for labor contracts now that Democratic Gov. Dannel Malloy has signed a controversial bill.
 
The home-care workers are paid through Medicaid, while the home child-care workers are paid through the state’s Care for Kids program, which provides payments for day care to low-income parents so they can work. Both groups have been trying to win union recognition for years. Their efforts were rewarded when Gov. Malloy issued an executive order last September allowing them to unionize. Home-care workers voted in March  by a margin of four to one to join SEIU's New England Health Care Employees Union, District 1199. Day care workers voted 1603 to 88 last December in favor of joining Connecticut State Employees Association/SEIU Local 2001.
 
The controversy erupted both over Malloy’s executive order, which legislative and business critics charged was an overreach of his authority and which resulted in three lawsuits to try to stop the process, and over the home-care provider piece of the new legislation signed into law May 14, which some charged would be detrimental to the elderly and disabled who need home-care services by interfering in the close relationship providers have with their consumer-employers. Those opposed included individuals on both sides of that relationship, as well as Republican state Sen. Joe Markley, who led the fight against the bill, which the state legislature passed on May 3.
 
But Deborah Chernoff, communications director with SEIU District 1199, says that because of the intimate nature of the relationship, protections for those receiving services have been built into the legislation. “The consumer has the right to select the person, hire them, train them in the kind of services they want and the way they want those services delivered, and if it doesn’t work out, to fire that person. Unlike a sort of traditional collective bargaining agreement, there will be no grievance procedure between the consumer and the home care worker.“
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Monday, May 21, 2012 • 11:21 am

When People Become ‘Labor Costs’: Fortune Celebrates Honeywell CEO, Ignores Unionbusting

By Mike Elk

Honeywell CEO David Cote. (Photo courtesy of Policy Network via Flickr)  

“Dave Cote is feeling the beat. He takes a sip of Mountain Dew and bobs his head in time to the throbbing bass of Jay-Z's "Hard Knock Life.” So begins Fortune magazine profile titled "How Dave Cote Got Honeywell's Groove Back."

As someone who has covered Honeywell's unionbusting—especially at an Illinois uranium processing plant—for the last two years, I found the long profile by Fortune Senior Editor-at-Large Shawn Tully fascinating. Tully was granted the type of access to Honeywell CEO David Cote and his closest friends and business advisors that reporters like myself, who focus not on profits but on how businesses treat workers, would love to have.   

Tully’s profile is filled with entertaining stories about Cote. It talks about how he grew up the son of a mechanic and played the accordion as a child. It chronicles how, as a low-level GE auditor, Cote was found and mentored by CEO Jack Welch, who was impressed by Cote because of his “refusal to bad-mouth his superiors" and later recommended him to head Honeywell about 10 years ago. Now, Tully writes:

Honeywell (HON) ranks as a top performer among the diversified industrials, starting with how it has rewarded shareholders. Since the start of 2003, Honeywell's stock has surged from $24 to $60. Investors have reaped a total return, including dividends, of 215%. That puts Honeywell in second place among industrial conglomerates...

And why exactly have Honeywell investors done so well? In large part because Cote has sytematically reduced the company's "labor costs," i.e, how much it pays workers. Tully writes:

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Monday, May 21, 2012 • 9:58 am

New Chicago Air Cargo Center: More Chinese Imports, and More Jobs?

By Kari Lydersen

Chicago is often billed as the nation’s top destination and departure point for Chinese imports and exports. The city’s capacity for trade with China is supposed to get a big boost in the coming years because of a planned new $200 million cargo handling center at Chicago O’Hare International Airport, which was announced by Mayor Rahm Emanuel last week.

The center drew praise from both labor and business leaders, as it is projected to create “more than 11,000” jobs—actually 1,200 temporary construction jobs and 1,200 permanent jobs, while indirectly sparking the creation of 10,000 jobs regionally. While the jobs are sorely needed and the Chicago Federation of Labor endorsed the plan in a joint statement with the Chicagoland Chamber of Commerce, skeptics question how great the jobs will actually be and, in principle, whether facilitating more imports of Chinese goods is a positive thing for local U.S. workers.

The plan involves $62 million of city airport funds and a $130 million investment by the private firm Aeroterm LLC. The construction jobs will likely be filled by union members, but it is unclear from media coverage and the mayor’s announcement whether the permanent jobs at the center will be union or exactly what types of jobs are expected to be created indirectly.

According to Crain’s Chicago Business, Aeroterm will act as the property manager and lease the cargo-handling facility out to customers. The story says there are no certain clients identified yet, but Aeroterm feels confident enough about prospects to put its money on the line. To anyone familiar with the logistics industry (essentially another form of cargo handling) often explored on this blog, the arrangement should raise some concerns.

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Saturday, May 19, 2012 • 4:38 pm

Nurses Lead NATO Protest for ‘Robin Hood Tax’

By David Moberg

CHICAGO—In the labor movement's main contribution to protests at NATO's meeting in Chicago this weekend, a thousand members of the National Nurses Union—joined by several thousand supporters—rallied Friday on behalf of their campaign to "heal America." They urged governments around the world to tax financial sector speculation, which caused the ongoing crisis, and use the proceeds to preserve and expand government's role in reducing inequality, providing for health and other public needs, and creating a healthy economy with full employment.

Overcoming efforts by Mayor Rahm Emanuel to prohibit their demonstration in the central Daley Plaza, the NNU called for implementation of a tiny tax on financial transactions, like stock and derivative sales, that would yield many billions of dollars to reverse the austerity budgets imposed at all levels of government and to increase spending on health care, education, infrastructure and vital public services and investments.

NNU originally planned its actions to target both the G-8 and NATO leaders, drawing attention to the financial transaction tax (FTT)--what NNU calls a "Robin Hood tax"--as an international issue. "We wanted to let the world leaders know that this is one of the policies that could put the world economy back on its feet," said Karen Higgins, co-president of NNU. "Everyone else pays a sales tax, and these high-end financiers should have a tax on their sales."

As the one sector of the labor force that has grown even during the recession, healthcare workers, like nurses, may seem improbable militants in the fight for jobs. "But we don't stop at the door of where we're employed," Higgens said. "It doesn't matter if I have a job, I see people who come in very sick and are not taking their medicine because they can't afford it."

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Friday, May 18, 2012 • 10:47 am

Facing Common Struggles, Domestic Workers Mobilize Across Borders

By Michelle Chen

The United States isn't unique when it comes to political and social crises related to immigration. Migrants in other parts of the world face similar, sometimes much harsher struggles. Even those who are "legal" are often extremely vulnerable to economic exploitation, racial discrimination, and physical and sexual abuse. Abuse and enslavement of migrant and domestic workers from Asia and Africa has become epidemic in the Middle East.  In the wake of the suicide of an abused Ethiopian worker, Alem Dechasa-Desisa, whose story helped galvanize migrant rights campaigns, the issue has moved into the media spotlight lately:

Stories of migrants dying on the job or taking their own lives are not uncommon, underscoring how their lives can be undervalued once they're swept into a "disposable" household workforce. Migrant women in particular struggle often with abusive employers and sexual harassment.

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Thursday, May 17, 2012 • 5:17 pm

In Contract Vote, American Airlines Workers Split Over Bankruptcy Concessions

By Josh Eidelson

Unions push merger with US Airways

In a split decision on the lesser of perceived evils, five bargaining units of American Airlines’ largest union voted to accept management’s final offer on concessions, while two voted to reject it. Members of the Transport Workers Union (TWU) voted via phone and Internet beginning last week, and the results were announced on Tuesday. The vote took place against the backdrop of a bankruptcy union leaders opposed, a legal process they distrust and a potential merger they’ve endorsed.

"We're at the mercy of the court," Tulsa machinist Joe McGill, whose unit voted against the deal, told the Associated Press Tuesday. "I hope we can survive this, keep the maintenance base open and functioning, and maybe start to rebuild."

As I’ve previously reported, AMR—the parent company of American Airlines and its sibling American Eagle—filed for bankruptcy in November. AMR’s unions questioned the bankruptcy’s motivation, and its then-CEO’s resignation was announced the same day as the filing. Following two months of negotiations with its unions over proposed concessions, AMR filed with a bankruptcy judge to override its current union contracts. If approved, the motion would allow the company to impose greater concessions than those in its current offer.

With majorities ranging from 59 to 96 percent, American’s offer was approved by bargaining units consisting of fleet service clerks, dispatchers, ground school instructors, maintenance control technicians, and simulator technicians. While most bargaining units voted to ratify, TWU”s largest bargaining unit, which includes aircraft maintenance workers, voted 56-44 percent against it, as did store clerks (51-49 percent).  In total, 51 percent of 17,521 voting members voted to approve the terms.

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Thursday, May 17, 2012 • 12:38 pm

Amid ‘Sabotage’ Investigation, Honeywell Lays Off Plant’s Entire Union Workforce

By Mike Elk

Last Thursday, May 10, at around 2 p.m., managers walked into Honeywell's uranium conversion plant in Metropolis, Ill., and told workers—both union and nonunion—they had to leave the plant immediately. Multiple workers present say a manager explained the sudden dismissal by noting that the company had to investigate "sabotage" of plant equipment.

Since May 10, Honeywell has allowed 100 of 170 nonunion salaried workers to return to work, and has allowed 90 of its 100 nonunion contactors to continue working in the plant. But none of the plant's 168 hourly union employees have been allowed to return to work—the company has informed them that they've been laid-off indefinitely. All laid-off union workers were immediately left without pay and health insurance. In contrast, when Honeywell locked out USW union workers in June 2010, it waited nearly three months to cut off their health insurance.

The Metropolis plant is no stranger to contentious labor relations. In 2010 and 2011, it  was the scene of a tense 13-month long lockout of United Steelworker (USW) members. That dispute was resolved last fall when the union ratified a new contract. Since then, however, the work environment has been tense; several key USW Local 7-669 leaders have been fired by Honeywell. Local 7-669 leaders say Honeywell is trying to bust the union. 

For many workers, the order by management to leave the plant felt like lock-out déjà vu. “I have been through a lockout and it felt like this. If this isn’t a lockout, I don’t know what it is,” Local 7-669 President Stephen Lech says.

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