Zellers employees walk away empty-handed in $1.825-billion deal August 18, 2012
Posted by rogerhollander in Canada, Labor.Tags: Canada, Canada labour, capitalism, francine kopun, labor, labour, retail chains, roger hollander, Stephen Harper, target, ufcw, workers, workers rights, zellers
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Roger’s note: Capitalism 1A. In the capitalist world those who own and control capital (great wealth) have virtually unfettered and tyrannical power over those who produce wealth for them, their workers. We call it a system because the laws of the state affirm and enforce this unequal relationship. Capitalism is in the long run unsustainable because you cannot get blood from a stone. Competition forces capital to continually search for new sources of cheap labor and to downgrade the living standards of existing labor. We see this happening on a world-wide basis, and we see the global economic crisis this has engendered. In the past, due to labor organization and pressures from below, governments have been forced to mitigate the excesses of capital and enact laws to partially protect labor. As monopoly capital gains greater control over governments around the world, we see less and less of this. This is certainly the case in the US and Canada.

fi-target
Colin McConnell/Toronto Star Angela Rankin was laid off from Zellers after 13 years. At age 50 she’s wondering what’s next for her.
Business Reporter
Angela Rankin knows exactly how much Target paid Zellers for the leases to 220 stores across Canada.
It wasn’t a billion. It was $1.8-billion — $1.825-billion to be more precise.
Rankin was let go on July 28 from the Zellers at Dufferin and Dupont in Toronto after 13 years working the cash, the sales floor and as a pharmacy technician, with nothing more than the legally mandated severance pay her employers were required to give.
“It’s selfishness. It’s sad,” says Rankin, 50, a mother of one who helps support cousins in Jamaica.
“I don’t know what they’re thinking. I don’t know where their mind is. It’s greediness.”
Rankin will speak at a demonstration led by the United Food and Commercial Workers Union on Wednesday, Aug. 22, at 11 a.m., in front of Target’s Canadian headquarters in Mississauga.
“Target needs to do the right thing – keep the workers and respect their wages and benefits,” says Kevin Shimmin, national representative of the UFCW Canada,
Target posted earnings Wednesday of $704 million (U.S.), or $1.06 per share, in the period ended July 30. Overall revenue rose 3.5 per cent to $16.45 million in the quarter. Revenue at stores opened at least a year rose 3.1 per cent.
The chain will open its first stores in Canada in 2013.
On the day she spoke to the Star, Rankin was hauling home a fat, round container, almost as tall as she is, for which she paid $70, to send her family in Jamaica dried cod, rice, cooking oil and toothpaste.
Some of what Rankin is sending was purchased at Zellers: A Sunbeam MixMaster, bearing a red wrap with Zellers stamped on it, sits on the floor of her tiny apartment, waiting to be packed.
Rankin worked 28 hours a week at Zellers and when she left she was earning $11.97 an hour. She kept a second job to make ends meet. She worked in security for eight years. She works part-time for the UFCW.
Now, at 50, she’s wondering what’s next. Should she apply for another retail job? Should she go back to school? She knows she loves helping people any way she can.
“It doesn’t have to be this way,” says Kendra Coulter, a professor at the Centre for Labour Studies at Brock University. “This is a decision that has been made at the corporate level by Target and Zellers and HBC.”
She blames Stephen Harper’s Conservative government for failing to protect workers.
“If a very profitable foreign company is going to come into our country to rebrand stores, our citizens deserve respect and some criteria have to be met. They’re not building infrastructure from scratch, they’re not creating an enterprise that didn’t exist, they are rebranding stores,” said Coulter.
Walmart did it differently in 1994. When the Arkansas-based chain bought the ailing Woolco stores, it took on all 16,000 employees in 122 locations.
“Even though Woolco had seen better days and was struggling, there was still an enormous amount of talent in that company,” said Andrew Pelletier, vice-president of corporate affairs and sustainability at Walmart Canada.
Mario Pilozzi, a senior vice-president at Woolco at the time of the takeover, went on to become CEO of Walmart Canada.
Woolco sales associates were given extensive retraining. They were given a five per cent raise.
“I think that is one of the reasons Walmart has succeeded in Canada, is because we started with a fantastic team that we re-motivated,” said Pelletier.
Walmart now has more than 300 locations in Canada.
Interestingly, Walmart did not apply the same approach this time around when it picked up 39 former Zellers stores from Target.
“We didn’t automatically hire all of the Zellers employees as we needed to determine the staffing needs for each of these additional stores first, which vary in size and layout. We also needed to determine what merchandise would be carried in each store (food, etc) which varies by store and which affects staffing requirements.
However, we have been reaching out to the Zellers employees all year and have already hired hundreds of the Zellers employees to work in these stores, including pharmacy associates. Since our hiring for these stores is still underway, we expect the number of Zellers hires will continue to grow,” said Pelletier.
Of the 220 Zellers leaseholds originally purchased in 2011, Target kept 189. It transferred 45 of the 189 to other retailers, including 39 to Walmart. In July, HBC announced that it would be closing its remaining 85 stores.
There were 273 Zellers locations in Canada before the deals were made, each location employing between 100 and 150 people. About 15 Zellers stores were unionized.
That means at least 27,300 people across Canada lost their jobs as a result of the transactions.
“The simple fact is that Target did not buy the Zellers business and as such there was no transfer of merchandise, systems or employees,” Target Canada spokesperson Lisa Gibson said.
“Target wants to deliver the best guest service possible. To accomplish that goal, we need the flexibility to interview all interested candidates so we can select the best, guest-service focused team members.
“Target has already hired a number of former Zellers/HBC employees and is guaranteeing an interview to all Zellers employees who apply for a position for the 2013 store opening cycle.”
Elizabeth Foley, 47, worked at Zellers for 14 years, down to the last days.
“They sold everything that wasn’t nailed down and I helped them,” says Foley, a single mother of two teenagers.
This week, Foley received notice that the owners of the house she rents in Windsor want her to leave so they can occupy it themselves.
Her hope is that she will qualify for job retraining under an employment insurance program so she can work in a payroll department somewhere.
Representatives for HBC declined to discuss how the Zellers employees were dealt with.
“Zellers Associates are receiving a greater amount of notice (or pay in lieu) than the provincial employment standards legislation. Zellers is also providing the affected Associates with career training and transition support services to assist them in finding employment opportunities. Zellers is committed to treating our Associates fairly throughout this transition,” HBC spokesperson Tiffany Bourré wrote in response to questions from the Star.
Foley says the only career training and transition support she got from HBC was access to a website focused on how to write a resumé.
“That was their retraining program,” she said.
Foley and Rankin said Zellers employees with 20 years of service and more received an extra 20 per cent in severance and those with 25 years or more received an extra 25 per cent.
Mike Moffat, an assistant professor at the Richard Ivey School of Business, says HBC could have negotiated a better deal for Zellers employees.
“Target’s argument is logically sound. It is, from a legal point of view, absolutely correct. Do they have some additional ethical obligations? I think that there was an opportunity here for Target to go above and beyond their legal responsibility.”
Moffat says corporations act in this fashion because they can.
“At the end of the day most of us do our shopping based on price and convenience. We don’t take the time to think: How does this particular retailer treat employees compared to another retailer? Corporations know that, which gives then a great deal of flexibility to make these moves.”
The Ratio of CEO Pay to Workers’ Pay October 8, 2011
Posted by rogerhollander in Uncategorized.Tags: capitalism, ceo bonuses, ceo pay, Economic Crisis, labor, roger hollander, worker rights, workers
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How the McEconomy Bombed the American Worker May 9, 2011
Posted by rogerhollander in Economic Crisis, Labor.Tags: andy kroll, Economic Crisis, economy, fast food workers, gas prices, housing market, jobs, labor, labor history, labour, mcdonalds, mceconomy, mcjobs, roger hollander, unemployment, unions, wages, workers, working class
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www.tomdispatch.com, May 8, 2011
While President Obama has seen a sizeable jump in his approval ratings in the wake of the killing of Osama bin Laden, scratch beneath the surface of those polls and you’ll find another story entirely. Check out his figures when it comes to the economy, and there, Osama bin Laden and all those “USA! USA!” chanting crowds aside, his approval rating just hit a new low.
Killing bin Laden, Libya’s Gaddafi, and Iran’s Ahmedinejad, for that matter, isn’t likely to win an election for an American president these days. As in Bill Clinton’s famed 1992 election campaign against George H.W. Bush (who also garnered headlines for foreign policy “successes”), the mantra is still: “It’s the economy, stupid.” The job market (or lack of it), rising food and gas prices, a housing market that remains in a state of collapse — you know the story. Right now, it looks as if someone had flown a hijacked plane directly into the economy. For example, among young people, a key Obama demographic, more than four million Americans ages 16 to 24 are out of work.
And if you think that the usual numbers are dismal, just wait until you dig under them with TomDispatch Associate Editor Andy Kroll and consider the way the American economy and its workers are being Third-World-ized. This remains a wealthy country with significant resources, which makes it all the eerier that it’s beginning to feel as if the phrase “banana republic” might one of these days apply. (To catch Timothy MacBain’s latest TomCast audio interview in which Kroll discusses what grim news lurks under the monthly unemployment figures, click here, or download it to your iPod here.) Tom
How the McEconomy Bombed the American Worker
The Hollowing Out of the Middle Class
By Andy KrollThink of it as a parable for these grim economic times. On April 19th, McDonald’s launched its first-ever national hiring day, signing up 62,000 new workers at stores throughout the country. For some context, that’s more jobs created by one company in a single day than the net job creation of the entire U.S. economy in 2009. And if that boggles the mind, consider how many workers applied to local McDonald’s franchises that day and left empty-handed: 938,000 of them. With a 6.2% acceptance rate in its spring hiring blitz, McDonald’s was more selective than the Princeton, Stanford, or Yale University admission offices.
It shouldn’t be surprising that a million souls flocked to McDonald’s hoping for a steady paycheck, when nearly 14 million Americans are out of work and nearly a million more are too discouraged even to look for a job. At this point, it apparently made no difference to them that the fast-food industry pays some of the lowest wages around: on average, $8.89 an hour, or barely half the $15.95 hourly average across all American industries.
On an annual basis, the average fast-food worker takes home $20,800, less than half the national average of $43,400. McDonald’s appears to pay even worse, at least with its newest hires. In the press release for its national hiring day, the multi-billion-dollar company said it would spend $518 million on the newest round of hires, or $8,354 a head. Hence the Oxford English Dictionary’s definition of “McJob” as “a low-paying job that requires little skill and provides little opportunity for advancement.”
Of course, if you read only the headlines, you might think that the jobs picture was improving. The economy added 1.3 million private-sector jobs between February 2010 and January 2011, and the headline unemployment rate edged downward, from 9.8% to 8.8%, between November of last year and March. It inched upward in April, to 9%, but tempering that increase was the news that the economy added 244,000 jobs last month (not including those 62,000 McJobs), beating economists’ expectations.
Under this somewhat sunnier news, however, runs a far darker undercurrent. Yes, jobs are being created, but what kinds of jobs paying what kinds of wages? Can those jobs sustain a modest lifestyle and pay the bills? Or are we living through a McJobs recovery?
The Rise of the McWorker
The evidence points to the latter. According to a recent analysis by the National Employment Law Project (NELP), the biggest growth in private-sector job creation in the past year occurred in positions in the low-wage retail, administrative, and food service sectors of the economy. While 23% of the jobs lost in the Great Recession that followed the economic meltdown of 2008 were “low-wage” (those paying $9-$13 an hour), 49% of new jobs added in the sluggish “recovery” are in those same low-wage industries. On the other end of the spectrum, 40% of the jobs lost paid high wages ($19-$31 an hour), while a mere 14% of new jobs pay similarly high wages.
As a point of comparison, that’s much worse than in the recession of 2001 after the high-tech bubble burst. Then, higher wage jobs made up almost a third of all new jobs in the first year after the crisis.
The hardest hit industries in terms of employment now are finance, manufacturing, and especially construction, which was decimated when the housing bubble burst in 2007 and has yet to recover. Meanwhile, NELP found that hiring for temporary administrative and waste-management jobs, health-care jobs, and of course those fast-food restaurants has surged.
Indeed in 2010, one in four jobs added by private employers was a temporary job, which usually provides workers with few benefits and even less job security. It’s not surprising that employers would first rely on temporary hires as they regained their footing after a colossal financial crisis. But this time around, companies have taken on temp workers in far greater numbers than after previous downturns. Where 26% of hires in 2010 were temporary, the figure was 11% after the early-1990s recession and only 7% after the downturn of 2001.
As many labor economists have begun to point out, we’re witnessing an increasing polarization of the U.S. economy over the past three decades. More and more, we’re seeing labor growth largely at opposite ends of the skills-and-wages spectrum — among, that is, the best and the worst kinds of jobs.
At one end of job growth, you have increasing numbers of people flipping burgers, answering telephones, engaged in child care, mopping hallways, and in other low-wage lines of work. At the other end, you have increasing numbers of engineers, doctors, lawyers, and people in high-wage “creative” careers. What’s disappearing is the middle, the decent-paying jobs that helped expand the American middle class in the mid-twentieth century and that, if the present lopsided recovery is any indication, are now going the way of typewriters and landline telephones.
Because the shape of the workforce increasingly looks fat on both ends and thin in the middle, economists have begun to speak of “the barbell effect,” which for those clinging to a middle-class existence in bad times means a nightmare life. For one thing, the shape of the workforce now hinders America’s once vaunted upward mobility. It’s the downhill slope that’s largely available these days.
The barbell effect has also created staggering levels of income inequality of a sort not known since the decades before the Great Depression. From 1979 to 2007, for the middle class, average household income (after taxes) nudged upward from $44,100 to $55,300; by contrast, for the top 1%, average household income soared from $346,600 in 1979 to nearly $1.3 million in 2007. That is, super-rich families saw their earnings increase 11 times faster than middle-class families.
What’s causing this polarization? An obvious culprit is technology. As MIT economist David Autor notes, the tasks of “organizing, storing, retrieving, and manipulating information” that humans once performed are now computerized. And when computers can’t handle more basic clerical work, employers ship those jobs overseas where labor is cheaper and benefits nonexistent.
Another factor is education. In today’s barbell economy, degrees and diplomas have never mattered more, which means that those with just a high school education increasingly find themselves locked into the low-wage end of the labor market with little hope for better. Worse yet, the pay gap between the well-educated and not-so-educated continues to widen: in 1979, the hourly wage of a typical college graduate was 1.5 times higher than that of a typical high-school graduate; by 2009, it was almost two times higher.
Considering, then, that the percentage of men ages 25 to 34 who have gone to college is actually decreasing, it’s not surprising that wage inequality has gotten worse in the U.S. As Autor writes, advanced economies like ours “depend on their best-educated workers to develop and commercialize the innovative ideas that drive economic growth.”
The distorting effects of the barbell economy aren’t lost on ordinary Americans. In a recent Gallup poll, a majority of people agreed that the country was still in either a depression (29%) or a recession (26%). When sorted out by income, however, those making $75,000 or more a year are, not surprisingly, most likely to believe the economy is in neither a recession nor a depression, but growing. After all, they’re the ones most likely to have benefited from a soaring stock market and the return to profitability of both corporate America and Wall Street. In Gallup’s middle-income group, by contrast, 55% of respondents claim the economy is in trouble. They’re still waiting for their recovery to arrive.
The Slow Fade of Big Labor
The big-picture economic changes described by Autor and others, however, don’t tell the entire story. There’s a significant political component to the hollowing out of the American labor force and the impoverishment of the middle class: the slow fade of organized labor. Since the 1950s, the clout of unions in the public and private sectors has waned, their membership has dwindled, and their political influence has weakened considerably. Long gone are the days when powerful union bosses — the AFL-CIO’s George Meany or the UAW’s Walter Reuther — had the ear of just about any president.
As Mother Jones‘ Kevin Drum has written, in the 1960s and 1970s a rift developed between big labor and the Democratic Party. Unions recoiled in disgust at what they perceived to be the “motley collection of shaggy kids, newly assertive women, and goo-goo academics” who had begun to supplant organized labor in the Party. In 1972, the influential AFL-CIO symbolically distanced itself from the Democrats by refusing to endorse their nominee for president, George McGovern.
All the while, big business was mobilizing, banding together to form massive advocacy groups such as the Business Roundtable and shaping the staid U.S. Chamber of Commerce into a ferocious lobbying machine. In the 1980s and 1990s, the Democratic Party drifted rightward and toward an increasingly powerful and financially focused business community, creating the Democratic Leadership Council, an olive branch of sorts to corporate America. “It’s not that the working class [had] abandoned Democrats,” Drum wrote. “It’s just the opposite: The Democratic Party [had] largely abandoned the working class.”
The GOP, of course, has a long history of battling organized labor, and nowhere has that been clearer than in the party’s recent assault on workers’ rights. Swept in by a tide of Republican support in 2010, new GOP majorities in state legislatures from Wisconsin to Tennessee to New Hampshire have introduced bills meant to roll back decades’ worth of collective bargaining rights for public-sector unions, the last bastion of organized labor still standing (somewhat) strong.
The political calculus behind the war on public-sector unions is obvious: kneecap them and you knock out a major pillar of support for the Democratic Party. In the 2010 midterm elections, the American Federation of State, County, and Municipal Employees (AFSCME) spent nearly $90 million on TV ads, phone banking, mailings, and other support for Democratic candidates. The anti-union legislation being pushed by Republicans would inflict serious damage on AFSCME and other public-sector unions by making it harder for them to retain members and weakening their clout at the bargaining table.
And as shown by the latest state to join the anti-union fray, it’s not just Republicans chipping away at workers’ rights anymore. In Massachusetts, a staunchly liberal state, the Democratic-led State Assembly recently voted to curb collective bargaining rights on heath-care benefits for teachers, firefighters, and a host of other public-sector employees.
Bargaining-table clout is crucial for unions, since it directly affects the wages their members take home every month. According to data from the Bureau of Labor Statistics, union workers pocket on average $200 more per week than their non-union counterparts, a 28% percent difference. The benefits of union representation are even greater for women and people of color: women in unions make 34% more than their non-unionized counterparts, and Latino workers nearly 51% more.
In other words, at precisely the moment when middle-class workers need strong bargaining rights so they can fight to preserve a living wage in a barbell economy, unions around the country face the grim prospect of losing those rights.
All of which raises the questions: Is there any way to revive the American middle class and reshape income distribution in our barbell nation? Or will this warped recovery of ours pave the way for an even more warped McEconomy, with the have-nots at one end, the have-it-alls at the other end, and increasingly less of us in between?
Andy Kroll is a reporter in the D.C. bureau of Mother Jones magazine and an associate editor at TomDispatch. The son of two teachers, he grew up in a firmly — and happily — middle-class household. His email is andykroll (at) motherjones (dot) com. To listen to Timothy MacBain’s latest TomCast audio interview in which Kroll discusses what grim news lurks under the monthly unemployment figures, click here, or download it to your iPod here.
Copyright 2011 Andy Kroll
Hundreds of Union Janitors Fired Under Pressure From Feds May 7, 2010
Posted by rogerhollander in California, Economic Crisis, Immigration, Labor, Racism.Tags: California, david bacon, Homeland Security, Immigration, javier murillo, labor, labour, obama administration, racism, seiu, undocumented, unions, workers
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Friday 07 May 2010
by: David Bacon, t r u t h o u t | Op-Ed

(Photo: © David Bacon)
San Francisco, California – Federal immigration authorities have pressured one of San Francisco’s major building service companies, ABM, into firing hundreds of its own workers. Some 475 janitors have been told that unless they can show legal immigration status, they will lose their jobs in the near future.
ABM has been a union company for decades, and many of the workers have been there for years. “They’ve been working in the buildings downtown for 15, 20, some as many as 27 years,” said Olga Miranda, president of Service Employees Local 87. “They’ve built homes. They’ve provided for their families. They’ve sent their kids to college. They’re not new workers. They didn’t just get here a year ago.”
Nevertheless, the Immigration and Customs Enforcement (ICE) division of the Department of Homeland Security has told ABM that they have flagged the personnel records of those workers. Weeks ago, ICE agents sifted through Social Security records and the I-9 immigration forms all workers have to fill out when they apply for jobs. They then told ABM that the company had to fire 475 workers who were accused of lacking legal immigration status.

ABM is one of the largest building service companies in the country, and it appears that union janitorial companies are the targets of the Obama administration’s immigration enforcement program. “Homeland Security is going after employers that are union,” Miranda charged. “They’re going after employers that give benefits and are paying above the average.”
Last October, 1,200 janitors working for ABM were fired in similar circumstances in Minneapolis. In November, over 100 janitors working for Seattle Building Maintenance lost their jobs. Minneapolis janitors belong to SEIU Local 26, Seattle janitors to Local 6 and San Francisco janitors to Local 87.
President Obama said sanctions enforcement targets employers “who are using illegal workers in order to drive down wages – and oftentimes mistreat those workers.” An ICE Worksite Enforcement Advisory claimed, “unscrupulous employers are likely to pay illegal workers substandard wages or force them to endure intolerable working conditions.”

Curing intolerable conditions by firing or deporting workers who endure them doesn’t help the workers or change the conditions, however. And despite Obama’s contention that sanctions enforcement will punish those employers who exploit immigrants, employers are rewarded for cooperating with ICE by being immunized from prosecution. Javier Murillo, president of SEIU Local 26, said, “The promise made during the audit is that if the company cooperates and complies, they won’t be fined. So this kind of enforcement really only hurts workers.”
ICE Director John Morton said the agency is auditing the records of 1,654 companies nationwide. “What kind of economic recovery goes with firing thousands of workers?” Miranda asked. “Why don’t they target employers who are not paying taxes, who are not obeying safety or labor laws?”
The San Francisco janitors are now faced with an agonizing dilemma. Should they turn themselves in to Homeland Security, which might charge them with providing a bad Social Security number to their employer, and even hold them for deportation? For workers with families, homes and deep roots in a community, it’s not possible to just walk away and disappear. “I have a lot of members who are single mothers whose children were born here,” Miranda said. “I have a member whose child has leukemia. What are they supposed to do? Leave their children here and go back to Mexico and wait? And wait for what?”

Miranda’s question reflects not just the dilemma facing individual workers, but of 12 million undocumented people living in the United States. Since 2005, successive congress members, senators and administrations have dangled the prospect of gaining legal status in front of those who lack it. In exchange, their various schemes for immigration reform have proposed huge new guest worker programs, and a big increase in exactly the kind of enforcement now directed at 475 San Francisco janitors.
While the potential criminalization of undocumented people in Arizona continues to draw headlines, the actual punishment of workers because of their immigration status has become an increasingly bitter fact of life across the country.
President Obama, condemning Arizona’s law that would make being undocumented a state crime, said it would “undermine basic notions of fairness that we cherish as Americans.” But then he announced his support for legislation with guest worker programs and increased enforcement.

The country is no closer to legalization of the undocumented than it was ten years ago. But the enforcement provisions of the comprehensive immigration reform bills debated in Congress over the last five years have already been implemented on the ground. The Bush administration conducted a high-profile series of raids in which it sent heavily-armed agents into meatpacking plants and factories, held workers for deportation and sent hundreds to federal prison for using bad Social Security numbers.
After Barack Obama was elected president, immigration authorities said they’d follow a softer policy, using an electronic system to find undocumented people in workplaces. People working with bad Social Security numbers would be fired.
Ironically the Bush administration proposed a regulation that would have required employers to fire any worker who provided an employer with a Social Security number that didn’t match the SSA database. That regulation was then stopped in court by unions, the ACLU and the National Immigration Law Center. The Obama administration, however, is implementing what amounts to the same requirement, with the same consequence of thousands of fired workers.

Union leaders like Miranda see a conflict between the rhetoric used by the president and other Washington, DC, politicians and lobbyists in condemning the Arizona law, and the immigration proposals they make in Congress. “There’s a huge contradiction here,” she said. “You can’t tell one state that what they’re doing is criminalizing people, and at the same time go after employers paying more than a living wage and the workers who have fought for that wage.”
Renee Saucedo, attorney for La Raza Centro Legal and former director of the San Francisco Day Labor Program, is even more critical. “Those bills in Congress, which are presented as ones that will help some people get legal status, will actually make things much worse,” she charged. “We’ll see many more firings like the janitors here, and more punishments for people who are just working and trying to support their families.”
Increasingly, however, the Washington proposals have even less promise of legalization, and more emphasis on punishment. The newest Democratic Party scheme virtually abandons the legalization program promised by the “bipartisan” Schumer/Graham proposal, saying that heavy enforcement at the border and in the workplace must come before any consideration of giving 12 million people legal status.
“We have to look at the whole picture,” Saucedo urged. “So long as we have trade agreements like NAFTA that create poverty in countries like Mexico, people will continue to come here, no matter how many walls we build. Instead of turning people into guest workers, as these bills in Washington would do, while firing and even jailing those who don’t have papers, we need to help people get legal status, and repeal the laws that are making work a crime.”
Unions Bash Democrats, Warn of Political Fallout February 14, 2010
Posted by rogerhollander in Uncategorized.Tags: afl-cio, ben nelson, card check, congress, craig becker, democrats, james hohmann, labor, leo gerard, roger hollander, seiu, senate, steelworkers, trade unions, unions, workers
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(Roger’s note: this article illustrates the farce of the two party system or our so-called democracy. Trade unionists who poured money and labor into the election of Obama and a Democratic majority in Congress are no seeing themselves betrayed by the President and the Congress. They are therefore threatening to sit out the midterm elections as a way of punishing the Democrats. But, as happened in Massachusetts, this will only benefit the Republicans, who are virulently anti-labor. Question: are we forever to be faced with choosing between the “lesser of evils, which is no more in reality than a Hobson’s choice? My way or the highway.
I learned my lesson in 1964 when I worked my butt off to elect Lyndon Johnson to the presidency only to see him escalate the War in Vietnam. I had a relapse in 2004 and 2008 when faced with the re-election of Bush and the candidacy of John McCain; I panicked and voted for Kerry and Obama.
Obama is demonstrating what I already should have known, that the Democratic Party is twiddle dee to the Republican’s twiddle dum. Of course there are marginal differences, but when it comes to the fundamental issues of war and peace and the economy, they are identical twins.)
Labor groups are furious with the Democrats they helped put in office – and are threatening to stay home this fall when Democratic incumbents will need their help fending off Republican challengers.
![nelson_labor_ap_218.jpg [Labor groups furious at Democrats such as Sen. Ben Nelson (D-Neb.) are threatening to stay home during this fall's midterm elections. (Photo: AP photo composite by POLITICO) ]](http://www.commondreams.org/files/article_images/nelson_labor_ap_218.jpg)
The Senate’s failure to confirm labor lawyer Craig Becker to the National Labor Relations Board was just the latest blow, but the frustrations have been building for months.
“Here’s labor getting thrown under the bus again,” said John Gage, the national president of the American Federation of Government Employees, which represents 600,000 workers. “It’s really frustrating for labor, and a lot of union people are thinking: We put out big time in money and volunteers and support. And it seems like the little things that could have been aren’t being done.”
The 52-33 vote on Becker - who needed 60 to be confirmed - really set labor unions on edge, but the list of setbacks is growing.
The so-called “card check” bill that would make it easier to unionize employees has gone nowhere. A pro-union Transportation Security Administration nominee quit before he even got a confirmation vote. And even though unions got a sweetheart deal to keep their health plans tax-free under the Senate health care bill, that bill has collapsed, leaving unions exposed again.
Union leaders warn that the Democrats’ lackluster performance in power is sapping the morale of activists going into the midterm elections.
“Right now if we don’t get positive changes to the agenda, we’re going to have a hard time getting members out to work,” said United Steelworkers International President Leo W. Gerard, in an interview.
“There’s no use pretending any longer.”
The biggest threat, of course, is apathy from a Democratic constituency that has a history of mobilizing for elections.
“You’re just not going to be able to go to our membership in the November elections and say, ‘Come on, let’s do it again. Look at what the Democratic administration has done for us!’” Gage said. “People are going to say, ‘Huh? What have the Democrats done for us?’”
Kim Freeman Brown, the executive director of a D.C.-based nonprofit called American Rights at Work, acknowledged “frustration” with the lack of movement.
“I implore Congress to listen to the voice of their constituents who want change, and so far we haven’t delivered good enough on that promise,” she said. “To the degree that we don’t address these real bread-and-butter issues, we will have failed America’s workers.”
Gage warned that Democrats will struggle to energize blue-collar voters if they don’t score a few victories soon. Union leaders say they will closely watch as a new “jobs bill” emerges to see if it includes more labor-friendly provisions or tax cuts for small businesses.
When you talk to labor officials these days, much of their animus is directed at Sen. Ben Nelson (D-Neb.), who helped filibuster Becker’s confirmation.
“Ben Nelson has got principles until you buy him off,” Gerard said.
A group affiliated with the Service Employees International Union, called Change That Works, had defended Nelson’s support for an unpopular health care reform bill in his home state.
But the Nebraska director of that group, Jane Kleeb, now criticizes Nelson for not allowing the Becker nomination to come to the floor for an up-or-down vote. And Bill Samuel, legislative director for the AFL-CIO, accused Nelson of following a “double standard” since he had argued that the nominees of then-President George W. Bush should get up-or-down votes.
Another AFL-CIO spokesman, Eddie Vale, pinpointed Nelson, saying he had “let down” working families. Nelson said Becker’s stance on labor issues made him worry whether he would be “impartial” in making NLRB decisions.
But labor unions can’t pin all their blame on Nelson. The failure of a wide range of union priorities has been deflating for the labor movement, which seemed destined to be one of the biggest beneficiaries of Barack Obama’s presidency.
And with unemployment hovering around 10 percent, special treatment for unions has only served to harm the movement.
On health care, unions found themselves in a defensive posture. They worked in early January to carve out an exception from an excise tax on so-called Cadillac insurance policies, only to see the package fall apart, with recriminations about just the kind of back-room deal making they had engaged in.
Obama said he would push for greater unionization at the Transportation Security Administration, but it hasn’t happened. Obama has pushed for education programs that have long been unpopular with teachers’ unions. And then, in his State of the Union address, the president called for Congress to strengthen trade relationships with South Korea, Panama and Columbia.
The support for those trade agreements irked Gerard, the leader of the steelworkers union, who praises Speaker Nancy Pelosi but blames the upper chamber.
“Our problem is the Senate,” Gerard said. “The only thing they can pass is the washroom. I don’t want to tar Democrats. Not all Democrats in the Senate are problems.”
The situation in the Senate became more frustrating when Democrats lost their 60-seat supermajority with the election of Massachusetts Republican Scott Brown.
Brown’s first significant vote was a “no” on Becker.
“I think you see how working people feel by how they voted in Massachusetts,” Gerard said. “In Massachusetts, it wasn’t an anger that the government had done too much. It was an anger that there hadn’t been enough change.”
Democrats are now scrambling to shore up support for labor unions, but they don’t seem to have a game plan for more union-friendly legislation in advance of the midterm elections.
But Katie Packer, executive director of the anti-card-check Workforce Fairness Institute, said labor groups would have achieved a lot more if they hadn’t overreached.
“I’m from Detroit, so the concept of labor overreach is not lost on me,” she said. “What we’ve seen more than anything is an attempt by big labor is to be especially greedy and grab for things that weren’t achievable.”
Manu Raju contributed to this report.
© 2010 Politico.com
Worker Solidarity, the Toronto City Workers Strike, and Words to Remember July 18, 2009
Posted by rogerhollander in A: Roger's Original Essays, About Workers, Labor.Tags: canada labor, Canada labour, civic workers, cupe, david miller, Economic Crisis, labor, labor relations, labour, mark ferguson, public employees, roger hollander, solidarity, toronto labor, toronto strike, unions, worker solidarity, workers, workers rights
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Every once in a while (not often enough) a statement is made that is so succinct and to the point that it merits being carved in stone.
First some background. Locals 79 (inside workers) and 461 (outside workers) of the Canadian Union of Public Employees (C.U.P.E.), which represents nearly 25,000 municipal workers at the City of Toronto, are on strike. The City has provoked the strike by offering substantially lower cost of living increases than have been approved recently for other civic workers (fire, police, library, etc.) and by demanding concessions of previously gained benefits. The City and the uncritical media have made much of a benefit gained many contracts ago whereby workers can bank unused sick leave and collect a lump sum on retirement (a benefit for which the workers would have made concessions in other areas to achieve).
Since the City workers collect garbage, run day care centers, approve permits and licences, etc., the strike has had an impact on the daily lives of most residents and is generally held to be unpopular. Interestingly, it is both the City (mainly its Mayor, David Miller) and the Union that are being held responsible by many. But the workers have taken the brunt of the hostility.
The recently elected President of C.U.P.E. Local 416, Mark Ferguson, a veteran paramedic and student of Eastern religion, has received mountains of e-mails ranging from critical to outright hateful (along with some supportive ones). In response to one of the critics, he wrote the following memorable lines (which are so important that I will put them bold in caps):
YOUR SENSE OF CAUSE AND EFFECT ARE SERIOUSLY FLAWED. PERHAPS YOU MIGHT REDIRECT YOUR ANGER TOWARDS THE BANKS, FINANCIERS AND WALL STREET RATHERTHAN CANNIBALIZING GAINS MADE BY OTHER WORKING PEOPLE. REFRAME YOUR QUESTION FROM “I DON’T HAVE IT SO THEY SHOULDN’T EITHER,” TO “THEY HAVE IT — WHY DONT I?” IT’S NOT A RACE TO THE BOTTOM, SIR.
Grand Theft Auto: How Stevie the Rat Bankrupted GM June 8, 2009
Posted by rogerhollander in Economic Crisis, Labor.Tags: car czar, Citibank, general moters, gm bankruptcy, gm pension, Greg Palast, jp morgan chase, labor, labor unions, labour, Obama, obama administration, pension funds, robert rubin, roger hollander, steven rattner, tarp, treasury secretary, workers, workers rights
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Monday 01 June 2009
by: Greg Palast | Visit article original @ GregPalast.com
Screw the autoworkers. They may be crying about General Motors’ bankruptcy today. But dumping 40,000 of the last 60,000 union jobs into a mass grave won’t spoil Jamie Dimon’s day.
Dimon is the CEO of JP Morgan Chase bank. While GM workers are losing their retirement health benefits, their jobs, their life savings; while shareholders are getting zilch and many creditors getting hosed, a few privileged GM lenders – led by Morgan and Citibank – expect to get back 100% of their loans to GM, a stunning $6 billion.
The way these banks are getting their $6 billion bonanza is stone cold illegal.
I smell a rat.
Stevie the Rat, to be precise. Steven Rattner, Barack Obama’s “Car Czar” – the man who essentially ordered GM into bankruptcy this morning.
When a company goes bankrupt, everyone takes a hit: fair or not, workers lose some contract wages, stockholders get wiped out and creditors get fragments of what’s left. That’s the law. What workers don’t lose are their pensions (including old-age health funds) already taken from their wages and held in their name.
But not this time. Stevie the Rat has a different plan for GM: grab the pension funds to pay off Morgan and Citi.
Here’s the scheme: Rattner is demanding the bankruptcy court simply wipe away the money GM owes workers for their retirement health insurance. Cash in the insurance fund would be replaced by GM stock. The percentage may be 17% of GM’s stock – or 25%. Whatever, 17% or 25% is worth, well … just try paying for your dialysis with 50 shares of bankrupt auto stock.
Yet Citibank and Morgan, says Rattner, should get their whole enchilada – $6 billion right now and in cash – from a company that can’t pay for auto parts or worker eye exams.
Preventive Detention for Pensions
So what’s wrong with seizing workers’ pension fund money in a bankruptcy? The answer, Mr. Obama, Mr. Law Professor, is that it’s illegal.
In 1974, after a series of scandalous take-downs of pension and retirement funds during the Nixon era, Congress passed the Employee Retirement Income Security Act. ERISA says you can’t seize workers’ pension funds (whether monthly payments or health insurance) any more than you can seize their private bank accounts. And that’s because they are the same thing: workers give up wages in return for retirement benefits.
The law is darn explicit that grabbing pension money is a no-no. Company executives must hold these retirement funds as “fiduciaries.” Here’s the law, Professor Obama, as described on the government’s own web site under the heading, “Health Plans and Benefits.”
“The primary responsibility of fiduciaries is to run the plan solely in the interest of participants and beneficiaries and for the exclusive purpose of providing benefits.”
Every business in America that runs short of cash would love to dip into retirement kitties, but it’s not their money any more than a banker can seize your account when the bank’s a little short. A plan’s assets are for the plan’s members only, not for Mr. Dimon nor Mr. Rubin.
Yet, in effect, the Obama Administration is demanding that money for an elderly auto worker’s spleen should be siphoned off to feed the TARP babies. Workers go without lung transplants so Dimon and Rubin can pimp out their ride. This is another “Guantanamo” moment for the Obama Administration – channeling Nixon to endorse the preventive detention of retiree health insurance.
Filching GM’s pension assets doesn’t become legal because the cash due the fund is replaced with GM stock. Congress saw through that switch-a-roo by requiring that companies, as fiduciaries, must
“… act prudently and must diversify the plan’s investments in order to minimize the risk of large losses.”
By “diversify” for safety, the law does not mean put 100% of worker funds into a single busted company’s stock.
This is dangerous business: The Rattner plan opens the floodgate to every politically-connected or down-on-their-luck company seeking to drain health care retirement funds.
House of Rubin
Pensions are wiped away and two connected banks don’t even get a haircut? How come Citi and Morgan aren’t asked, like workers and other creditors, to take stock in GM?
As Butch said to Sundance, who ARE these guys? You remember Morgan and Citi. These are the corporate Welfare Queens who’ve already sucked up over a third of a trillion dollars in aid from the US Treasury and Federal Reserve. Not coincidentally, Citi, the big winner, has paid over $100 million to Robert Rubin, the former US Treasury Secretary. Rubin was Obama’s point-man in winning banks’ endorsement and campaign donations (by far, his largest source of his corporate funding).
With GM’s last dying dimes about to fall into one pocket, and the Obama Treasury in his other pocket, Morgan’s Jamie Dimon is correct in saying that the last twelve months will prove to be the bank’s “finest year ever.”
Which leaves us to ask the question: is the forced bankruptcy of GM, the elimination of tens of thousands of jobs, just a collection action for favored financiers?
And it’s been a good year for Senor Rattner. While the Obama Administration made a big deal out of Rattner’s youth spent working for the Steelworkers Union, they tried to sweep under the chassis that Rattner was one of the privileged, select group of investors in Cerberus Capital, the owners of Chrysler. “Owning” is a loose term. Cerberus “owned” Chrysler the way a cannibal “hosts” you for dinner. Cerberus paid nothing for Chrysler – indeed, they were paid billions by Germany’s Daimler Corporation to haul it away. Cerberus kept the cash, then dumped Chrysler’s bankrupt corpse on the US taxpayer.
(“Cerberus,” by the way, named itself after the Roman’s mythical three-headed dog guarding the gates of Hell. Subtle these guys are not.)
While Stevie the Rat sold his interest in the Dog from Hell when he became Car Czar, he never relinquished his post at the shop of vultures called Quadrangle Hedge Fund. Rattner’s personal net worth stands at roughly half a billion dollars. This is Obama’s working class hero.
If you ran a business and played fast and loose with your workers’ funds, you could land in prison. Stevie the Rat’s plan is nothing less than Grand Theft Auto Pension.
It doesn’t make it any less of a crime if the President drives the getaway car.
——-
Economist and journalist Greg Palast, a former trade union contract negotiator, is author of the New York Times bestsellers “The Best Democracy Money Can Buy” and “Armed Madhouse.” He is a GM bondholder and card-carrying member of United Automobile Workers Local 1981. Palast’s latest reports for BBC Television and Democracy Now! are collected on the newly released DVD, “Palast Investigates: From 8-Mile to the Amazon – on the trail of the financial marauders.” Watch the trailer here.




Walmart: “Not Financially Feasible” To Take Minimal, Legally Required Steps to Save Workers’ Lives December 6, 2012
Posted by rogerhollander in Bangladesh, Labor.Tags: bangladesh, capitalism, industrial safety, labor, labour, roger hollander, walmart, worker safety, workers, workers rights
1 comment so far
by Abby Zimet
In the wake of last month’s fire in a Bangladesh garment factory that killed over 100 workers, Bloomberg has gained access to notes from a 2011 meeting where Walmart officials decided against paying suppliers high enough prices to cover costs of needed safety improvements because they deemed it “not financially feasible for the brands to make such investments.” The meeting was attended by more than a dozen retailers, including Gap, Target and JC Penney. Over 300 Bangladeshi garment factory workers have died since 2006. Walmart reported a 9% increase in third-quarter net income, bringing their earnings for that quarter to $3.63 billion. An estimated half of Bangladesh’s garment factories don’t meet legally required work safety standards. At a fire in a nearby warehouse two days after the Tazreen factory fire, workers had to climb down a bamboo pole because they couldn’t get to the stairs; graffiti on a restroom wall there read: “Work here and your life is a living hell.”
“Specifically to the issue of any corrections on electrical and fire safety, we are talking about 4,500 factories, and in most cases very extensive and costly modifications would need to be undertaken to some factories,” they said in the document. “It is not financially feasible for the brands to make such investments.”
COMMENTS
gardenernorcal
Guess what if that is their firm position, then mine is: It’s no longer morally feasible for me to purchase your goods. I am thinking if fewer people buy their goods they may change their way of thinking.
sLiM_mC_sHaDy
Yes, please do not shop there. I never have; they sicken me.
Catherine Carre
People forget that it is precisely this type of immoral exploitation that led Marx and Engels to develop their communist philosophy…Engels’ “The condition of the working class in England” describes very similar conditions as suffered by those workers in developing countries employed by behemoths such as Walmart…communism is the child of capitalism..
nveric
Show me how Communism works?
Tom Carberry
Communism works fine in Cuba, despite over 60 years of a crushing blockade. Communism worked fine in the Soviet Union if you consider general equality and the absence of crime a good life. Muhammad Ali said he felt safer in Moscow than any other city in the world, because it had no crime.
Communism had its horrors, like Stalin’s gulags. But the American slavery system, followed by 160 years of Jim Crow, and the largest prison system in the history of the world (dwarfing Stalin’s gulags at their largest point), makes those horrors look like minor glitches.
And don’t forget the many tens of millions of people America has slaughtered in its wars for profit.
American capitalism works for the top 20% of the people, but not for the rest.
Gubdeb
I dunno…which is worse?: 1: Walmart, or, 2: the MIC/American Capitalism that makes a “Walmart”possible? How many wars did we wage to get to this point. How many “Deals” were cut to have these products sold here? (see NAFTA & Robert Reich) The POINT is, until we face who we really are, things will never change. Walmart is just a symptom, not the problem.
AmonVerite
Here is the problem: http://www.stateofnature.org/d…
giovannalepore
Remember Bhopal India and now Bangladesh: Symbols of why they hate the USA. Your “democracy” and “freedom” are nothing but smoke screens for crimes against humanity.
Gubdeb
I thought Indians loved the USA(?) Why, the MSM in recent years has woven Indians into the very fabric of American life. In network programming, ads, and they seem to all love Walmart. Yes, Walmart.
giovannalepore
I doubt that this is the case with the overwhelming numbers of Indians IN India especially those who were the US victims. At the rate the US is going it will have the entire world despise it.
Matthew Grebenc
Money is power, and corporations pursue it at any cost. They are psychopathic.
wildcarrots
Well yes there is a sick mentality. Once a factory burns down it will have to been re-built or replaced. You either re-build it before or after the employees are there working. that is the sick really stupid part.
theoldgoat
This is where we are, its emblematic of the massive shift that must be brought about in order to restore balance.
“Work here and your life is a living hell.”
… the system, owned by interests that value profit over life, scorn those who see from other perspectives – an absolutely essential aspect of life – yet do so brutally, without compunction, on the backs of BILLIONS OF PEOPLE AROUND THE WORLD>
Boycott any brand you cannot identify and source to ethical satisfaction.
itsthethird
Corporations and workers can take the heat while the stockholders, capitalists, consumers, and management, can take the profits. However the costs of profit are spread disproportionate to benefits if any exist the benefits are captured immediately while costs are avoided by all. The whole system is dysfunctional because cost avoidance or shifting is acceptable and or encouraged.
greatbear215
Walmurder: Were they value profits over people!
Shantiananda
Not just Walmart, but the whole American Empire, “value profits over people”! Walmart is just the paradigm of the American corportocracy.
AmonVerite
As seen here: http://www.stateofnature.org/d…
Gubdeb
Thank you, Shan.
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Guess what if that is their firm position, then mine is: It’s no longer morally feasible for me to purchase your goods. I am thinking if fewer people buy their goods they may change their way of thinking.
Yes, please do not shop there. I never have; they sicken me.
People forget that it is precisely this type of immoral exploitation that led Marx and Engels to develop their communist philosophy…Engels’ “The condition of the working class in England” describes very similar conditions as suffered by those workers in developing countries employed by behemoths such as Walmart…communism is the child of capitalism..
Show me how Communism works?
Communism works fine in Cuba, despite over 60 years of a crushing blockade. Communism worked fine in the Soviet Union if you consider general equality and the absence of crime a good life. Muhammad Ali said he felt safer in Moscow than any other city in the world, because it had no crime.
Communism had its horrors, like Stalin’s gulags. But the American slavery system, followed by 160 years of Jim Crow, and the largest prison system in the history of the world (dwarfing Stalin’s gulags at their largest point), makes those horrors look like minor glitches.
And don’t forget the many tens of millions of people America has slaughtered in its wars for profit.
American capitalism works for the top 20% of the people, but not for the rest.
I dunno…which is worse?: 1: Walmart, or, 2: the MIC/American Capitalism that makes a “Walmart”possible? How many wars did we wage to get to this point. How many “Deals” were cut to have these products sold here? (see NAFTA & Robert Reich) The POINT is, until we face who we really are, things will never change. Walmart is just a symptom, not the problem.
Here is the problem: http://www.stateofnature.org/d…
Remember Bhopal India and now Bangladesh: Symbols of why they hate the USA. Your “democracy” and “freedom” are nothing but smoke screens for crimes against humanity.
I thought Indians loved the USA(?) Why, the MSM in recent years has woven Indians into the very fabric of American life. In network programming, ads, and they seem to all love Walmart. Yes, Walmart.
I doubt that this is the case with the overwhelming numbers of Indians IN India especially those who were the US victims. At the rate the US is going it will have the entire world despise it.
Money is power, and corporations pursue it at any cost. They are psychopathic.
Well yes there is a sick mentality. Once a factory burns down it will have to been re-built or replaced. You either re-build it before or after the employees are there working. that is the sick really stupid part.
This is where we are, its emblematic of the massive shift that must be brought about in order to restore balance.
“Work here and your life is a living hell.”
… the system, owned by interests that value profit over life, scorn those who see from other perspectives – an absolutely essential aspect of life – yet do so brutally, without compunction, on the backs of BILLIONS OF PEOPLE AROUND THE WORLD>
Boycott any brand you cannot identify and source to ethical satisfaction.
Corporations and workers can take the heat while the stockholders, capitalists, consumers, and management, can take the profits. However the costs of profit are spread disproportionate to benefits if any exist the benefits are captured immediately while costs are avoided by all. The whole system is dysfunctional because cost avoidance or shifting is acceptable and or encouraged.
Walmurder: Were they value profits over people!
Not just Walmart, but the whole American Empire, “value profits over people”! Walmart is just the paradigm of the American corportocracy.
As seen here: http://www.stateofnature.org/d…
Thank you, Shan.
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