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Politics

Florida City Paying $2,500 A Day To Radical Union-Busting Firm To Stop Workers From Organizing

All over the country, right-wing lawmakers are waging a war on Main Street America’s labor rights, purporting to do so out of a desire for fiscal restraint (while also backing budget-busting tax breaks for the wealthiest among us).

Now, the city of Winter Park, Florida, is going to new lengths to stop nearly 150 city workers from joining a union. Apparently more concerned with stopping the union than saving money, Winter Park hired consultants at Kulture LLC, “a firm specializing in labor relations” at the rate of $2,500 a day to persuade workers to vote against organizing this summer:

Winter Park is paying a consultant $2,500 a day to help the city’s staff dissuade about 150 city workers from joining a union. [...] Employees in the public works, parks, fleet maintenance and water departments are likely to vote in June or July on whether to join the American Federation of State, County and Municipal Employees, known as AFSCME. In the past few years, the city has done away with longevity bonuses and pay increases because of the economy. [...] Members of AFSCME have criticized the use of tax money to pay a group that they say has a politically right-leaning agenda.

A spokesman for the city told the Orlando Sentinel that it didn’t “do a political background check” on Kulture before hiring the firm and that the city just wants to inform workers about their options. Yet a cursory look at Kulture and the activities it conducts shows what the firm is all about: union-busting.

Kulture’s website is replete with right-wing ideology. It hosts op-eds claiming that sweatshops are an opportunity for the “third world poor” and bragging that the “labor movement is dead.” Its webpages direct users to far-right sources of information such as the Ayn Rand Institute and The Federalist Society. It also hosts the anti-union laborunionreport.com, which hosts anti-labor articles and a monthly “anti-union report.” The organization’s CEO, Peter A. List, has said that “unions are a by-product of a bad relationship.”

“We’re basically hiring them to make sure that factual, accurate information is given to our employees before they make a vote on whether or not to join a union,” says Winter Park spokeswoman Clarissa Howard. But one has to wonder how hiring a radical, Ayn Rand-promoting anti-union organization will do anything but try to scare workers into submission.

Economy

Meet The Workers Who Make Your iPad: 100 Hours Of Overtime, No-Suicide Pacts, Standing For 14 Hours A Day

Back in March, Sen. John McCain (R-AZ) astoundingly claimed that the iPad and iPhone are “built in the United States of America.” This news must have been a great surprise to the Chinese workers who work for Taiwanese-based manufacturing giant Foxconn, which is notorious for the poor conditions at its factories and the wave of suicides at its plants.

After much of the international media covered the abuses at Foxconn’s factories, the company, along with the major American corporations it supplies — like Apple and HP — announced that it would be reforming its practices.

Yet a new report from Students & Scholars Against Corporate Misbehaviour (SACOM), a Hong Kong-based advocacy and research group, finds that many of the practices that led more than a dozen workers committ suicide continue to live on. SACOM conducted a comprehensive study of practices at several Foxconn factories over the months of March and April and found that a number of shocking policies are in place. Here are some of the highlights of their study:

– Workers Are Being Asked To Work 80-100 Hours Of Overtime: Despite promises by Apple and Foxconn to limit overtime work to 36 hours a month, SACOM researchers found that in some factories, like in Chengdu, it is typical for workers to work 80-100 hours overtime instead. This is actually 2-3 times the legal limit of allowed overtime work.

– Workers Are Being Forced To Sign ‘No-Suicide’ Pacts: In the wake of a huge wave of suicides at Foxconn plants, the company began reforming its practices related to the suicides. Among these changes included installing anti-suicide nets to catch workers who attempted to leap out of company windows. Yet workers are also being forced to sign a non-suicide pact as a condition of employment. As part of the pact, the employees families have to promise “not sue the company, bring excessive demands, take drastic actions that would damage the company’s reputation or cause trouble that would hurt normal operations” in the case of a suicide.

– Employees Regularly Are Forced To Stand For 14 Hours A Day: SACOM found that workers in Chengdu “usually…have to stand for 14 hours a day.” “I don’t understand why we can’t sit. And we can’t bring our cell phone to the shop floor. Even the cell phone without camera is prohibited,” said one worker to the SACOM researchers.

– Employees Are Crammed Together In Dormitories With Squalid Living Conditions: In Chengdu, where almost all workers live in company-owned dormitories, the number of employees placed in a dormitory room range from 6 to 22. Employees’ living quarters are also under factory rules, and workers cannot even bring basic items such as hair dryers into their dorms. “Some of my roommates weep in the dormitory. I want to cry as well but my tears have not come out,” one 19 year-old employee told SACOM

Foxconn responded to the SACOM report with a statement given to the magazine PCWorld: “We have made tremendous progress over the past year as we work to lead our industry in meeting the needs of the new generation of workers in China and that has been confirmed by the many customer representatives, outside experts, and reporters who have visited our facilities and openly met with our employees and our management team.”

Update

Some talented activists are working on an iPhone app about Foxconn. You can help contribute to the project here.

Yglesias

Human Capital Can’t Explain The Precipitous Rise In Unemployment Across America

Two things are true. One is that unemployment in the United States is currently very high. The other is that levels of unemployment have a lot to do with educational attainment. This leads David Brooks to a completely wrongheaded inference that education is a primary driver of unemployment:

Part of the problem has to do with human capital. More American men lack the emotional and professional skills they would need to contribute. According to data from the Bureau of Labor Statistics, 35 percent of those without a high school diploma are out of the labor force, compared with less than 10 percent of those with a college degree. [...] The result is this: There are probably more idle men now than at any time since the Great Depression, and this time the problem is mostly structural, not cyclical.

Jamelle Bouie says Brooks is failing to mention the Great Recession. But I’d say he is mentioning it. He’s just positing that the cause of the Great Recession is either that America’s human capital stock took a sudden negative shock in 2007 or else perhaps that the value of human capital underwent a sudden and rapid increase in 2007. But as Charlie Eisenhood showed long ago this human capital differential existed well before the recession:

Or look at the trend:

Even when there wasn’t a huge shortfall in aggregate demand, high school dropouts had a very high unemployment rate. That right there is your “structural” unemployment. But then you see this gigantic increase in the unemployment rate for dropouts that precisely coincides with an increase in the unemployment rate for folks with high school diplomas and with an increase in unemployment rate for folks with some college and with an increase in the unemployment rate for people with bachelor’s degrees. That’s right, even folks over the age of 25 with college degrees took the hit at the exact same time. And that is what a shortfall in demand looks like.

Economy

Pawlenty Calls NLRB Attempt To Stop Boeing’s Union-Busting ‘Preposterous,’ ‘Outrageous’

Late last month, the National Labor Relations Board announced that it was launching a complaint against the airline manufacturer Boeing, alleging that the company decided to move a planned production line from Washington state to South Carolina as retribution against workers in Washington who had engaged in a strike. Republicans have gone into a fit of rage over seeing an administration that is actually interested in enforcing labor law, with Sen. Jim DeMint (R-SC) calling NLRB officials “thugs” from a “third-world country.”

Last night, the first Republican presidential primary debate took place in Greenville, South Carolina, where former Gov. Tim Pawlenty (R-SC) played to the local crowd by calling the NLRB’s decision “preposterous” and “outrageous”:

You have this administration, through the National Labor Relations Board, telling a private company that they can not relocate to South Carolina and provide jobs in this state, and they’re good-paying jobs, and they’re needed jobs. It’s a preposterous decision and position of this administrationI just want to make it clear: the idea that the federal government can tell a private business where they can be and not be in the United States of America is a whole new line that this administration has crossed and its outrageous.

Watch it:

Pawlenty conveniently leaves out that the basis for the case is the very public statements from Boeing officials, who said that their justification for moving was workers in Washington having the audacity to strike. One said that “the overriding factor [in moving to South Carolina] was not the business climate. And it was not the wages we’re paying today. It was that we cannot afford to have a work stoppage, you know, every three years.” Another said that the company decided to move its production line due to “strikes happening every three to four years in Puget Sound.”

Under labor law, it is simply illegal to move production as retribution against workers striking. And Boeing must know that these statements are incriminating, as it is now claiming that it was misquoted by the NLRB. If it felt the legal argument would swing its way, trying to hide from its statements wouldn’t be necessary. In fact, one lawyer quoted by the Seattle Times said, “If my sympathies are anywhere, they are with management. But I am also a realist. If I’m their labor lawyer, I’m cringing when they are saying that.”

Economy

Gov. Walker Signs Bill Blocking Milawukee’s Paid Sick Leave Law

In 2008, Milwaukee, Wisconsin became the third city in America to guarantee workers paid sick leave, joining Washington D.C. and San Fransisco. These cities are stepping up to fill a void left by the federal government, which is content to leave America as one of the only countries in the developed world that does not guarantee workers paid time off if they are sick.

The sick leave law was approved by referendum — with nearly 70 percent of voters in favor — and was upheld a few weeks ago by the state’s court of appeals. However, Republicans in the Wisconsin state legislature passed a bill preempting the city’s law and ensuring that no jurisdiction within the state of Wisconsin is allowed to decide it wants to mandate paid sick days. Gov. Scott Walker (R-WI) — who gained notoriety for proposing a law stripping public sector workers of their collective bargaining rights and sparking mass protests — signed the anti-sick leave bill into law today:

Gov. Scott Walker has signed a bill that prohibits local governments from passing ordinances guaranteeing workers’ paid sick and family leave…Walker, a Republican, says in a statement the bill removes another barrier to creating jobs.

But Walker’s concern about job-loss is overblown. The Drum Major Institute conducted a study examining San Francisco’s paid sick leave law and found “no evidence that businesses in San Francisco have been negatively impacted by the enactment of paid sick leave.” In fact, the U.S. economy as a whole loses $180 billion in productivity annually due to sick employees attending work and infecting other workers.

Despite Walker’s misguided action, as the National Association of Working Women noted, plenty of other cities are forging ahead with paid sick leave legislation:

In Philadelphia, a paid sick days bill was passed out of a City Council committee a few weeks ago, and in Connecticut, the state legislature is moving forward on a bill with bipartisan support. Paid sick days legislation in New York City has 35 City Council sponsors, legislation is about to be introduced in Seattle, and more than a dozen states have coalitions advocating actively for paid sick days and paid family leave policies. San Francisco and Washington, DC have already implemented paid sick days laws.

In the end, repealing Milwaukee’s paid sick leave law is simply one more way in which Walker is undertaking his assault on Wisconsin’s workers.

Economy

Republicans Call NLRB ‘Thugs’ From ‘A Third-World Country’ For Standing Up For Workers

Late last month, the National Labor Relations Board announced that it was filing a complaint against Boeing, alleging that the airline manufacturer decided to move a planned production line from Washington state to South Carolina as retribution against workers in Washington striking. As evidence, they pointed to public pronouncements from Boeing officials, including one who said, “the overriding factor [in moving to South Carolina] was not the business climate. And it was not the wages we’re paying today. It was that we cannot afford to have a work stoppage, you know, every three years.”

It is a violation of national labor law to retaliate against workers for striking, so the NLRB advanced its complaint. This has whipped the right wing into an uproar, and several Republican senators took to the floor today to deride the NLRB for “acting like thugs that you might see in a third world country”:

SEN. JIM DEMINT (R-SC): The administration, I believe, is acting like thugs that you might see in a third-world country, trying to bully and intimidate employers…This is crazy.

SEN. LINDSEY GRAHAM (R-SC): This complaint is dangerous. This complaint is a dangerous road to go down. This complaint is politics at its worst…The Congress should speak, the administration should speak out and say ‘this is frivolous.’

Watch a compilation:

Ten other Republican Senators sent a letter today to the NLRB taking issue with its decision to protect workers from union-busting.

But let’s review what happened. As labor journalist Mike Elk explained, “in 2007, Boeing announced it would create a second production line to produce three 787 Dreamliner planes a month in the Pudget Sound, in addition to the production that was already occurring in Pudget Sound. Then in October 2009, it was announced that suddenly the company would move the second production line to a nonunion plant in South Carolina.” And the company’s officials made it clear that the move was made because workers in Washington had decided to strike, which, whether Republicans like it or not, is illegal.

As the Washington Post’s Steve Pearlstein wrote, “given the public statements of Boeing officials, there is nothing radical about the NLRB’s decision.” But Republicans have decided to attack anyway, revealing once more how they believe corporate America should be allowed to do whatever it wants, no matter the law.

Yglesias

High School Drop Outs Suffer From Extremely High Unemployment Even When There’s No Recession

Here’s a chart from the St Louis Fed:

This kind of thing makes me wonder how much of a difference could be made by pure information. How many 14 and 15 year-olds are aware of this correlation? How might their behavior—and that of their parents—change if they were better informed? My dad dropped out of high school and he’s turned out fine, but I think that still wasn’t a decision with a positive expected value. People suffer from optimism bias that can be further exacerbated by bad information. After all, it’s not totally obvious what job-relevant skills one learns in 12th grade.

Economy

Gov. Haley Defends Boeing’s Union-Busting: ‘It’s Called Capitalism’

The National Labor Relations Board last week filed a complaint against the airplane manufacturer Boeing, noting that, according to public pronouncements by the company’s officials, the construction of a new plant in South Carolina was intended as retribution against workers in Washington who have engaged in a pair of strikes over the last six years. One senior Boeing official, for instance, said during an interview, “The overriding factor [in moving to South Carolina] was not the business climate. And it was not the wages we’re paying today. It was that we cannot afford to have a work stoppage, you know, every three years.”

Under national labor law, retaliating against workers for striking is illegal union-busting, but several Republican lawmakers have attacked the NLRB and the Obama administration for initiating the complaint. “This is nothing more than a political favor for the unions who are supporting President Obama’s re-election campaign,” said Sen. Jim DeMint (R-SC). “The Obama administration is now dictating where companies are allowed to create new jobs,” wrote former Gov. Tim Pawlenty (R-MN).

South Carolina Gov. Nikki Haley (R) took to the Wall Street Journal’s op-ed page today to decry the NLRB’s decision, saying that it circumvents capitalism and falsely claiming that the NLRB “wants Boeing to produce the planes only in Washington state“:

In choosing to manufacture in my state, Boeing was exercising its right as a free enterprise in a free nation to conduct business wherever it believed would best serve both the bottom line and the employees of its company. This is not a novel or complicated idea. It’s called capitalism. [...]

That is apparently too much for President Obama and his union-beholden appointees at the National Labor Relations Board, who have asked the courts to intervene and force Boeing to stop production in South Carolina. The NLRB wants Boeing to produce the planes only in Washington state, where its workers must belong to the International Association of Machinists and Aerospace Workers.

As the Washington Post’s Steve Pearlstein wrote, “given the public statements of Boeing officials, there is nothing radical about the NLRB’s decision”; the NLRB is simply trying to enforce worker protections that are already law. And, contrary to Haley’s pronouncement, the NLRB made clear that “The complaint does not seek closure of the South Carolina facility, nor does it prohibit Boeing from assembling planes there.”

Haley also neglects to mention that South Carolina gave Boeing nearly $1 billion to open its plant in South Carolina (even as Boeing systemically dodges taxes). Nor is this Haley’s first foray into union-busting; she named a union-busting attorney to head South Carolina’s Department of Labor, Licensing, and Regulation for the express purpose of preventing unions from trying to unionize Boeing’s South Carolina plant. Boeing donated to both Haley’s election campaign and her inaugural gala.

The laws that the NLRB is seeking to enforce are necessary to ensure that corporations can’t threaten to move production and fire workers who exercise their right to organize. Haley’s view — and that of the rest of the Republicans attacking Obama and the NLRB — is that corporations should be allowed to ignore the law and workers’ rights if it will increase their profits.

Politics

Massachussetts House Votes To Limit Public Employee Collective Bargaining For Health Care

Last winter, Gov. Scott Walker (R-WI) instigated a massive movement of Main Street Americans when he advocated for and passed a new budget law that severely restricted the labor rights of most public employees in the state.

Last night, Massachusetts took a step in that direction when the state House of Representatives voted 111-42 for a bill that would essentially strip public workers of their collective bargaining rights to negotiate for health insurance plans. Under the proposed law, unions would be allowed to negotiate with local officials for 30 days, but officials could still unilaterally impose changes in health insurance coverage if negotiations fail to reach an agreement. The text of the legislation spells this out:

(c) The appropriate public authority shall convene a meeting with a representative from each of the collective bargaining units to which the authority provides coverage and a retiree representative, hereafter called the public employee committee, and submit the proposal for plan design changes or a transfer to the commission. The proposal shall include details of changes to current plan design features and a cost savings estimate. The appropriate public authority and the public employee committee shall have 30 days to discuss the details of the proposal put forth by the appropriate public authority and negotiate the use of the 10 per cent cost savings realized by the governmental unit [...] If no agreement is reached between the parties, then the original plan design proposal or proposal to transfer to the commission submitted by the appropriate public authority shall be implemented by the appropriate public authority who shall establish an HRA to offset costs for high utilizers and retirees to be funded by 20 per cent of the estimated cost savings established under subsection [...] (d) An appropriate public authority may increase the dollar amounts for co-payments, deductibles, tiered provider network co-payments and other plan design features

“We are going to fight this thing to the bitter end,” Robert J. Haynes, president of the Massachusetts AFL-CIO, told the local press. “Massachusetts is not the place that takes collective bargaining away from public employees.” Local news station WWLP covered the vote last night. One representative who sponsored a failed amendment to neuter the bill drew comparisons to Wisconsin, saying, “Look at what happened in Wisconsin and some different places, collective bargaining rights are under assault.” Watch a report from WWLP TV:

Unions fight for collective bargaining: wwlp.com

A House leadership source told ThinkProgress that, “Contrary to statements mischaracterizing the House plan as ‘Wisconsinesque,’ the budget measure merely allows a municipality – if they wish – to seek changes to their health care plans.” The source continued, “State and municipal workers will still collectively bargain over wages, retirement benefits and most other rights.”

“There’s a class war going on this country and today the Massachusetts House sided against the middle class,” said Ed Kelly, president of the Professional Firefighters of Massachusetts, after the vote. The legislation now moves on to the senate, where its fate is uncertain, but unions plan to heavily lobby the chamber over the next month.

Climate Progress

Power Shift 2011: AFL-CIO Leader Richard Trumka Demands A Power Shift From The US Chamber

Last Monday, union leader Richard Trumka joined thousands of youth climate activists to challenge the U.S. Chamber of Commerce’s pollution of our nation’s politics. The chamber is the largest lobbying group in the country, promoting a right-wing corporate agenda that denies the threat of global warming pollution and promotes sending American jobs overseas. The activists, coming from the the Power Shift 2011 conference, were joined by the AFL-CIO president in a rally before the chamber’s headquarters on Lafayette Park, facing the White House. Students, like all of America’s workers, are facing the prospect of a terrible job market that rewards speculation and profiteering instead of clean-energy innovation. Trumka thanked the students and young Americans for “moving our national conversation where it has to go” by “fighting on the front lines”:

I don’t have to tell you that too many politicians and their corporate friends in Washington and state capitals across the country don’t care about jobs. They don’t care about the environment. They don’t care about our future. You see, they’re hell bent on pushing a destructive corporate political agenda. And that’s why what you’re doing is so critically important.

“You’re building power,” Trumka concluded to deafening cheers, “and you’re building political will to force our elected officials to consider the quality of the air we breathe, the food that we eat, the jobs that we have, the future we need for ourselves and our children.”

Coming out of Power Shift: the Briefcase Brigades are challenging Congress to help young people find work on April 27, and 350 is mobilizing businesses to tell everyone that “The Chamber Doesn’t Speak For Me.”

Transcript: Read more

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