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California Strike Highlights Hospitals’ Skewed Priorities June 26, 2011

Posted by rogerhollander in California, Health, Labor.
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Saturday 25 June 2011
by: Mark Brenner, Labor Notes                 | News Analysis

Hundreds of workers at a central California hospital return to work today, after a two-day lockout that provoked a complaint from the state labor board.

Workers at the Salinas Valley Memorial Hospital, two hours south of San Francisco, were locked out after taking to picket lines on Tuesday.

The daylong strike—the first ever in the hospital’s 58-year history—was called by members of the National Union of Healthcare Workers (NUHW) after stalled negotiations with hospital management.

The union, which represents techs, professionals, and service workers in the hospital, is fighting plans to cut more than 100 direct-care positions and trim pension and health care benefits for new hires.

The labor board’s complaint says the Salinas lockout was illegal retaliation for striking. A decision is expected within a month—and could net workers back pay for the days they were locked out.

It’s the third short strike this year by NUHW, which was founded in 2009 after SEIU placed its third-largest local, the dissident United Healthcare Workers-West, into trusteeship, prompting members and leaders to establish the breakaway union.

The struggles are a critical part of the union’s development, as NUHW members work against intense opposition from employers and their former union to secure first contracts for its 10,000 members statewide.

TOP HEAVY

“We’ve never operated in the red,” said Ester Fierros-Nuñez, the Salinas union chairperson. “But now top administrators are treating this hospital, and the community, like their personal ATM.”

Hospital executives have been under close scrutiny after the union uncovered a deal which provided the recently departed CEO more than $5 million in pension and severance on top of the $150,000 a year he collects from the state pension plan.

Outrage over this taxpayer-funded golden parachute has spurred a state audit of the hospital’s finances. According to Fierros-Nuñez, six additional executives have the same kind of deal, which allows recipients to bypass IRS tax shelter rules by funneling money through multiple pensions.

“It’s like Enron,” she said. “They want to cut folks at the bottom so they can pay more to people at the top.”

NUHW has also criticized the hospital’s decision to spend $12 million on outside consultants, most notably Wellspring Partners, a Chicago-based firm. The consulting company, under prior ownership, was involved in the takeover and closure of St. Vincent’s hospital in New York City.

In St. Vincent’s bankruptcy proceedings, it emerged that the consultants had billed the hospital for everything from groceries and dry cleaning to opera tickets and club memberships. Union activists worry that Wellspring is milking their hospital as well.

LEAN AND MEAN

The biggest concern voiced on Tuesday’s picket line was for the hospital’s patients.

According to Debbie Prader, a 38-year licensed vocational nurse at the hospital, staff cuts that started a year and a half ago have sent workloads skyrocketing.

Previously, Prader typically worked her entire shift on a single floor, with an average of 10 patients. Now she’s covering two or three floors, and caring for up to 19 patients.

“They’re dismantling the whole hospital,” Prader said. “There’s no way to give good care in these conditions.”

Lily Garner, a 30-year medical transcriptionist at the hospital whose sister is currently a patient, said she’s seen the impact first hand. Basic help, like bathroom assistance, is lacking, she said.

“The people making all the decisions aren’t in contact with patients,” said Linda Vallez, a certified nursing assistant for 31 years at the hospital. “All they see is numbers on a spreadsheet.”

Salinas Valley Memorial is just the latest example of a profitable hospital looking to take advantage of the recession and lower staffing standards.

The same drive for concessions led 2,500 NUHW members in Southern California to launch their second one-day strike at Kaiser Permanente facilities on May 18. The health care giant made more than $1 billion in profits last year but is pushing for layoffs and major pension and health benefit takeaways.

“Kaiser executives are making more money than ever and are giving themselves huge raises, but they refuse to provide nurses with the staff we need to take care of our patients properly,” said Roxana Valadez, a pediatric nurse in Los Angeles. “And now, they’re not just keeping us understaffed, they also want to cut our benefits. Kaiser is becoming a worse and worse place to provide patient care.”

NUHW’S NEXT STEPS

The fights at Kaiser and Salinas hold the promise of stabilizing NUHW’s financial future, if they can win the union a first contract—and dues checkoff. (The union is hand-collecting dues in the meantime). Tight resources have hampered the union’s expansion, leading it to withdraw from numerous elections in recent months.

But even more important, the struggles are defining NUHW’s identity independent of SEIU.

There is no question the union will continue to run and win elections in SEIU bargaining units across the state, and extend their reach into non-union hospitals and nursing homes. NUHW’s recent victory in three of the four California Pacific Medical Center facilities in San Francisco is the latest example of its enduring appeal.

But the union’s most important challenge right now is to make good on its founding promise—that workers can build a democratic union willing to stand up and fight.

This task is doubly difficult when unions everywhere are ducking for cover, and when taking concessions is the norm. SEIU’s California leaders have agreed to health care cost-shifting and pension takeaways at health care facilities, giving management yet more reason to take a hard line against NUHW.

For NUHW’s members, there is no going back to the union they once had. And workers from Santa Rosa to San Diego have demonstrated they’re ready to build something new, and hopefully better, in its place.

Cutting Wages Won’t Solve Detroit Three’s Crisis December 9, 2008

Posted by rogerhollander in Economic Crisis, Labor.
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auto-workers1Automakers have blamed workers for the financial collapse of the Detroit auto industry. (Photo: motortrend.com)

by: Mark Brenner and Jane Slaughter, The Detroit News

 In the 1980s, Chevrolet proclaimed itself the “Heartbeat of America,” but today the American auto industry barely registers a pulse. As Washington considers Detroit’s plea for life support, the only place where pundits, politicians and Big Three executives seem to agree is that auto workers must make do with less or watch their jobs disappear.

    Some lawmakers have complained that unions are the source of the problem, but they fail to understand some inconvenient truths. According to the latest figures from the U.S. Commerce Department, every worker in Big Three factories could work for free and only shave 5 percent off the cost of their cars. The auto companies pay as much for hubcaps and fenders as they do in wages.

    Data from the Harbour Report – the industry’s gold standard – reveal that even including their benefits, labor costs in the Big Three’s plants account for less than 10 percent of the sticker price.

    No matter how you cut the numbers, demolishing auto workers’ living standards will not transform the industry. The Big Three have been trying for years. They have slashed at least 200,000 jobs since 2004, and last year they wrung billions of dollars in concessions from the United Auto Workers. The union instituted a second-tier wage of $14.50 an hour for new hires, lower than pay in the nonunion, foreign-owned auto companies in the South.

    The impact is all too apparent in auto communities across the Midwest. Forty thousand Detroit homeowners are in foreclosure, and the unemployment rate has hit double digits in many auto towns. That suffering will multiply if one of the Big Three collapses, or if retired auto workers are punished for decisions they had no hand in.

    Automakers’ decisions have been disastrous. While competitors developed gasoline-electric hybrids, Detroit mined the gas-guzzling truck and SUV market, making $104 billion in profits between 1994 and 2003. Wall Street and Congress weren’t calling for more research and development or curbing the company’s dividend payments and high-flying executive salaries back then.

    Pundits crow for us to “Dump Detroit,” but they don’t advertise that through a bailout or the bankruptcy courts taxpayers will shoulder the burden of the automakers’ colossal missteps.

    Washington shouldn’t back into a bailout – it should jump in feet-first. What’s needed is not a half-measure, a cash infusion in exchange for selling the corporate jets. Now is the time to take a sweeping look at the country’s needs.

    Our first steps should confront global warming and oil dependence through a comprehensive overhaul of the transportation system. Federal policy hasn’t changed since the 1950s, when gas was a nickel a gallon.

    Detroit, the Arsenal of Democracy, retooled in a matter of weeks when we needed tanks, not cars, in 1941. We could produce this century’s answer to the interstate highway system and build mass transit and high-speed trains.

    That same sense of urgency is needed for vehicles that don’t run on petroleum. If American engineers can build satellites that read your license plate from outer space, they can develop an alternative to the gasoline engine.

    Automakers need direction as much as financial support from Washington, just as Japan’s government molded Toyota into a world-class performer.

    In every other industrialized nation, government has stepped in and given their auto companies a significant edge. Most important, they all adopted national health care and pension systems decades ago.

    General Motors alone provides health coverage to a million people – workers, retirees and families. The annual price tag is about $5 billion, which, as CEO Rick Wagoner is fond of pointing out, is more than GM spends on steel.

    That burden could be lifted, to the benefit of 47 million uninsured Americans, by adopting a Medicare-style program for everyone. It would save the nation as much as $350 billion per year now spent for insurance companies to shuffle paper and deny claims.

    The fate of the Motor City captivates us because it speaks to our future. For 30 years, politicians have bowed to Wall Street, sitting by while wages for most workers stagnated. Big Three workers have maintained their living standards better than most, in no small part because they have a union. In a country where investment bankers gave themselves $30 billion in bonuses last Christmas, have we reached a point where $58,000 a year with benefits is too much to ask?

    We once promised the pursuit of happiness to all, including the workers who make our factories run, not just those who trade credit default swaps. Now more than ever, we need to recapture that spirit with a thoroughgoing plan to rescue the environment, care for the sick and transform transportation.

    Mark Brenner and Jane Slaughter work for Labor Notes, an independent monthly labor magazine in Detroit. It receives no support from the United Auto Workers.