It has been a tough time of Concession Bargaining, Lock-Outs, Give Backs, Roll Backs, Higher & Higher Employee Costs. Please READ these Important Articles on this Trend in Labor Relations ....
Where Did All Our Pensions Go? |
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Another Attack on the Middle Class--Pensions
A total of 84,350 pension plans have vanished since 1985. This figure shocked Pulitzer Prize-winning authors Donald L. Barlett and James W. Steele, who just released their latest book, "The Betrayal of the American Dream." Their chapter on retirement chronicles the heist of the American dream's secure retirement by the financial elite and is a very important section of the book, says Steele, who spoke with the AFL-CIO about the retirement crisis. Steele says there is another number we should pay attention to: $17,686. That's the median value of 401(k) accounts in 2011. For most working people, the amount in their 401(k) account would pay them less than $80 a month for life.
"What's happening with retirement is almost parallel to what you see happening in other parts of the economy," says Steele.
The elite has its agenda to eliminate pensions with the shift to 401(k)s, which cost companies less. Now, there's a revenue stream for Wall Street and an obligation shift to people with little or no experience understanding how to deal with their own retirement issues....This is typical of all the other things the economy elite has been doing for decades with deregulation, unrestricted free trade and tax cuts—these things are all related.
"In the '50s, '60s and '70s, the amount of workers with access to pensions was significantly rising," says Steele. "We fully underestimated the speed in which the downturn would occu, and how Congress went along and encouraged it."
Barlett and Steele write that the shift from defined-benefit pension plans to 401(k)s began in the 1980s. Companies realized 401(k)s would substantially reduce corporate costs. Workers were told that pensions no longer made sense and were outdated since people moved around from job to job. The 401(k) was marketed as more “portable.”
Steele says 401(k)s were engineered by corporations as another way for the wealthy executives to set aside money. They were never intended to be a principal retirement plan, only a supplement.
"Once corporate America got on to this, the idea took root," says Steele. "The entire obligation shifted to the employees."
Congress ignored the concerns raised by trade unions and other pension rights organizations. And the consequences are dire for middle- and lower-income workers.
"This is so typical of what has been happening over the last two to three decades," says Steele. "This is the slow, steady erosion of economic security Americans had (or thought they had)....Now economic pundits, corporate folks and Wall Street people are saying people just have to work longer, in part because retirement plans now in place will not provide much security to people as they get older."
Barlett and Steele feature stories of average people who did everything right (saved, worked hard) but are still living on the edge of poverty because of policies that enhance the rich at the expense of everyone else.
Over and over again, people thought they had something good. They were working hard and then, through no fault of their own, lost it all. Most people we talked to in the book are employed.
People thought it was something they had done to lose their job or benefits....They didn’t realize it was part of a broader pattern. There are great swaths of working people who are affected and we think it's our fault. For most of these people, it's not their fault, it's just the way policy has been organized. Systematically dismantling pensions and retirement is the perfect example.
With the decline of pensions, it's even more important to strengthen, not cut, Social Security benefits. Although the country dodged a bullet in 2005, when Bush's plan for Social Security privatization fizzled, Steele says we still need to be vigilant to protect our benefits from the Wall Street casino.
Don and I make this point that the 2008 recession wouldn't look a whole lot different from the Great Depression if we didn't have Social Security and Medicare because there was no safety net then.
The economic elite, says Steele, attack Social Security because it's a large pool of money for Wall Street to play with.
Nobody should kid themselves that they're not going to come back and try to implement some parts of that [privatization]....The amount of money at stake is too good and that’s all they care about—access to that money, not American workers.
You can purchase "The Betrayal of the American Dream," on Amazon.com and Barnesandnoble.com.
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Ratifcation Of Contract between Catepillar & IAM Faces Difficulties |
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When you read this, do you see the similarities between them and us; what this Company is trying to achieve? It's scary, the latest trends in negotiations---wage freezes, pension freezes, increase healthcare costs, wage tier systems, the International going behind their backs---and this is after a 4 month strike! Catepillar Management wants the hourly wages to remain competitive, but raise their own salaries....as much as 60%; how do you think that flies with the hourly?!?!
Ratification of Union’s Deal With Caterpillar May Face Difficulties
By STEVEN GREENHOUSE
Caterpillar and the International Association of Machinists said on Wednesday that they had reached a tentative six-year settlement that could end a 15-week strike at the company’s hydraulics parts plant in Joliet, Ill.
But the settlement may face difficulties in the ratification vote on Friday. Top officials in the striking local — upset that the deal contained nearly all the far-reaching concessions Caterpillar had sought — said they would urge members to reject the deal, which was negotiated not by the local but at the district level.
The dispute — which involved a company known for setting an example for corporate America in its tough bargaining and a union known for resisting givebacks — has become a test case in American labor relations. Many workplace experts said Caterpillar was trying to pioneer territory by demanding major concessions, including a wage and pension freeze, even when its business was booming.
Tim O’Brien, president of Machinists Lodge Local Lodge 851, with about 700 members on strike, said the local’s bargaining committee would urge members to vote against the deal on the grounds that it contained steep concessions even when Caterpillar was making record profits.
The tentative settlement, union negotiators said, bows to Caterpillar’s demand for a six-year wage freeze for the top tier of workers, hired before May 2005. For the lower-paid tier of workers, hired after that date, the deal calls for one raise during the six years — 3 percent at the end of this year. The company’s previous offer did not promise any raise for that group.
Caterpillar has said — without promising — that it might also adjust the bottom tier’s wages upward according to local market conditions. The bottom tier represents approximately one-third of the factory’s workers. Their pay generally is $12 to $19 an hour, compared with a $26 average for the top tier, representing two-thirds of the plant’s workers.
Mr. O’Brien and many of his local’s members have repeatedly voiced unhappiness about Caterpillar’s insistence on a six-year wage freeze for the more senior tier, a pension freeze for those workers and a significant increase in the workers’ contributions to health insurance coverage.
“I’m not for this deal,” Mr. O’Brien said. “I haven’t been out on the picket line, doing all these things, so that I now have to put my tail between my legs and say I’m giving up.”
He acknowledged that about 105 of the 780 Caterpillar workers in his local had crossed the picket line since the strike began on May 1.
Caterpillar’s statement announcing the tentative deal added, “By agreement of the parties, we will not be commenting on any specific details of the tentative contract.”
Steve Jones, the top official in Machinists District 8 in Burr Ridge, Ill., and the union leader who reached the deal with Caterpillar, defended the settlement’s terms.
“It does not address every issue for every member, but it deserves to be brought to the membership for a vote,” he said in an interview, noting that many members were under financial strain after nearly four months on strike.
“It shouldn’t be individual leaders, a committee or the district who decide. We should allow the membership to voice their views.”
Mr. Jones added: “We’ve got some local people playing politics with people’s livelihoods. If there was a better agreement out there to be had, we would have taken it.”
But Mr. O’Brien said the parent union was giving up too easily and was feeling stretched from paying about $100,000 each week in strike benefits.
Mr. O’Brien said the deal also called for a $1,000 bonus for each worker upon ratification. Before the walkout began, the workers had voted down an offer that included a $5,000 ratification bonus.
Another Caterpillar demand that angered the workers was its insistence that the factory’s managers be able to indefinitely assign workers to new jobs or shifts regardless of seniority. That upset the workers because it struck at a basic tenet of unionism: seniority preferences.
Under the tentative deal, negotiators said, the company could still assign workers to new jobs or shifts outside of seniority, but only for a maximum of 90 days.
The strikers often insisted that it was wrong for Caterpillar to call for a six-year wage freeze when the company, the world’s leading producer of earth-moving equipment, had record profits of $4.9 billion last year and forecasts stronger earnings this year. Moreover, many strikers bristle at a pay freeze because compensation for Caterpillar’s chief executive, Douglas R. Oberhelman, jumped by 60 percent in 2011, to $16.9 million.
Caterpillar officials said they pushed for a pay freeze for the more senior workers to help the company remain cost-competitive because their pay was above market levels.
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Are We at a Tipping Point (Unions)? |
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Are We at a Tipping Point?
BY : Mark Brenner
June 27, 2012
Like these Wall Street protestors, we should aim at the true culprits and make every fight into a fight about the 1%. Don’t let our enemies make it a narrow battle about work rules or wages. Photo: Michael London.
The last four years have been enough to turn even the most true-blue union activist just plain blue. We are facing some very uncomfortable arithmetic.
Despite 16 million members and $10 billion plus in dues revenue, labor’s reach is dwindling. In most industries—even bastions like auto and construction—we don’t control enough of the market to win decent contracts, so we’re not attractive to new members.
Are we at a tipping point, where unions are no longer able to play their historical role of creating a shared working-class common sense? Can we still influence conditions for all?
If ever there was a window into unions’ limited reach, it was the heartbreaking outcome of the June 5 recall vote in Wisconsin. When President Obama and the national Democratic machine declined to weigh in, it was a scary reminder of just how willing our supposed allies are to ditch us.
But as Jim Cavanaugh discusses here, we have to admit that the union-backed candidate lost because of our inability to convince our own members that this was a referendum on the value of unions, and that they were worth protecting.
MISSED CHANCE
For a few short months after the 2008 financial meltdown, the glaring problems with our economic system were laid bare. Everyone could see that bankers and billionaires were to blame.
But when corporations write the rules, they can also throw out the rulebook when it’s convenient. They shifted the debate to handwringing over The Deficit, aided by the very real budget crises in cities and states across the country.
That’s where labor missed an opportunity. The good soldiers at the top of the labor movement took their cues from President Obama; they didn’t lead a people’s movement to rein in the speculators and tax the rich. Instead of linking a fight for jobs with a plan to save us all from climate disaster (which would have meant more stimulus), the president wanted corporate-friendly health care reform.
Labor lined up—even when Obama broke his campaign promise not to tax benefits.
With no daylight between labor’s top brass and the Obama agenda, there was no room to reinforce the country’s initial common sense about what went wrong with the economy and how to fix it.
BLAME THE BUS DRIVER
This left pundits, politicians, and far too many members of the public free to point the finger at teachers, bus drivers, and other government workers, blaming their pay and pensions—and their unions—for budget deficits. Why should city workers enjoy a decent retirement when most workers were one paycheck away from losing it all?
The have-nots were pitted against the have-a-little’s, leaving the 1% to have it all.
When Republicans took control of the House in 2010 and anti-union conservatives like Scott Walker moved in to governors’ mansions, conservatives started rolling out their elimination campaign for unions.
But their assault doubled as a working class wake-up call.
The Wisconsin uprising, last August’s rowdy strike of 45,000 against Verizon, the recurring short strikes by California health care workers, the militant actions of Longshore union members in Washington state to protect their jobs—2011 was the year the labor movement shook off its haze and started fighting back.
Of course, Occupy was the game-changer, taking aim squarely at the 1% and succeeding where unions had stumbled, by turning national attention back onto those responsible for the economic collapse. And Occupy also reinforced what was once common sense in labor circles, that direct action pays.
FIGHTING≠WINNING
“We need to fight like our unions’ lives depend on it.” It’s less hyperbole and more a statement of fact every day. That’s led to more openness, with unions embracing allies ranging from worker centers to Occupy.
But fighting is not the same as winning, and, frankly, neither companies nor mayors and governors were impressed enough to slow down their offensive. This year could be called the year of the lockout.
Despite last year’s uptick in struggle, not enough unions are taking advantage of leverage they do have, even when facing profitable employers. The Service Employees’ latest agreement with Kaiser Permanente all but guarantees retiree health care cuts five years from now. The Teamsters are about to open bargaining with UPS nearly a year early—foregoing the leverage of a strike threat.
Things are no better in the public sector, where too many leaders and members continue to act as if they can keep their heads down and ride out the storm.
In California this spring, most public sector union leaders were not ready to wage an us-versus-them battle over taxes, sandbagging a popular initiative to tax millionaires in favor of a “shared sacrifice” tax pushed by Democratic Governor Jerry Brown.
In the Teachers union, President Randi Weingarten keeps trying to woo Bill Gates and other billionaires—the 1% of the 1%—who believe they’ll be the saviors of education by demonizing teachers.
WHERE TO TURN?
It’s grim. Where should we focus?
Leverage matters. Unions should be sparking struggles that affect large numbers of people in key positions, like teachers, parents and students, or where workers wield outsize economic power, as in the retail supply chain.
Nurture the sparks, which may grow into flashpoints. We never know what will set off a larger conflagration. Where people are fighting back—like Station casino workers organizing in Vegas, or Chicago teachers readying to strike—go all out with solidarity. And work with, educate, and learn from Occupy members.
Isolation is death. Make it a priority to make connections outside your corner of the labor movement. When other unions have locals at your employer, hook up and start a council. Start a monthly breakfast of progressive union leaders—or rank and filers—in your city.
Make your union hall a center of community activity, places where a multitude of causes are welcome, from anti-foreclosure fights to environmental justice. Learn from unions like SEIU Local 26 (see here) and share space with groups fighting wage theft or organizing immigrants.
When unions adopt the attitude that defending members can’t be done without lifting up everyone, we’ve regained half the reputation we need to reclaim our space at the front of the working class.
National unions aren’t stepping forward, so locals must. Don’t ask for permission. Just do it. Today national leaders are less able to or less inclined to stop you, as the Madison teachers discovered when they struck at the start of the Wisconsin uprising.
Aim at the true culprits. Make every fight into a fight about the 1%. Don’t let our enemies make it a narrow battle about work rules or wages.
Make it clear that our goal is to take power out of corporate hands. It’s the perfect time to ask hard questions about the system we’re in—capitalism—and why it’s leaving so many of us further and further behind.
Understanding how things work, or don’t work, is critical to raising our sights, not just for a bigger and better labor movement, but for a world we deserve.
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The Middle Class in America Is Radically Shrinking!! |
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Here Are the Stats to Prove it
The big global corporations have greatly benefited by exploiting third world labor pools over the last several decades, but middle class American workers have increasingly found things to be very tough.
Here are the statistics to prove it:
• 83 percent of all U.S. stocks are in the hands of 1 percent of the people.
• 61 percent of Americans "always or usually" live paycheck to paycheck, which was up from 49 percent in 2008 and 43 percent in 2007.
• 66 percent of the income growth between 2001 and 2007 went to the top 1% of all Americans.
• 36 percent of Americans say that they don't contribute anything to retirement savings.
• A staggering 43 percent of Americans have less than $10,000 saved up for retirement.
• 24 percent of American workers say that they have postponed their planned retirement age in the past year.
• Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008.
• Only the top 5 percent of U.S. households have earned enough additional income to match the rise in housing costs since 1975.
• For the first time in U.S. history, banks own a greater share of residential housing net worth in the United States than all individual Americans put together.
• In 1950, the ratio of the average executive's paycheck to the average worker's paycheck was about 30 to 1. Since the year 2000, that ratio has exploded to between 300 to 500 to one.
• As of 2007, the bottom 80 percent of American households held about 7% of the liquid financial assets.
• The bottom 50 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth.
• Average Wall Street bonuses for 2009 were up 17 percent when compared with 2008.
• In the United States, the average federal worker now earns 60% MORE than the average worker in the private sector.
• The top 1 percent of U.S. households own nearly twice as much of America's corporate wealth as they did just 15 years ago.
• In America today, the average time needed to find a job has risen to a record 35.2 weeks.
• More than 40 percent of Americans who actually are employed are now working in service jobs, which are often very low paying.
• or the first time in U.S. history, more than 40 million Americans are on food stamps, and the U.S. Department of Agriculture projects that number will go up to 43 million Americans in 2011.
• This is what American workers now must compete against: in China a garment worker makes approximately 86 cents an hour and in Cambodia a garment worker makes approximately 22 cents an hour.
• Approximately 21 percent of all children in the United States are living below the poverty line in 2010 - the highest rate in 20 years.
• Despite the financial crisis, the number of millionaires in the United States rose a whopping 16 percent to 7.8 million in 2009.
• The top 10 percent of Americans now earn around 50 percent of our national income.
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Update on Verizon Workers Contract--it NEVER Ends Folks! |
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Verizon Trying to Destroy it's Unions.....
Unions Struggle to Regroup As Verizon’s Hits Keep Coming
Pat Fahy
| April 4, 2012
Seven months after last August’s bitter Verizon strike, the company's attack continues relentlessly. Hundreds of layoffs in New Jersey are underway as union leaders and rank-and-file rabble-rousers debate how to regain leverage. Photo: Unity at Verizon.
Just a few days shy of the six-month anniversary of last August’s bitter Verizon strike, bosses in New Jersey celebrated by announcing the layoff of 336 technicians.
The mass firing left only 20 Verizon Connected Solutions techs in the entire state. They began April 3. The layoffs pour fuel on the contract fight that continues for the 45,000 Verizon union workers on the East Coast.
VCS technicians make up a small portion of Verizon workers overall. They work exclusively with the copper plant, part of the infrastructure that carries both voice and DSL through much of the state. They have a separate contract from 5,000 Verizon “core” workers, who work on both copper and fiber-optic cable and who maintain the high-capacity circuits that connect the cell phone towers for all wireless phone companies.
Because the VCS techs work with older equipment, management feels justified in giving them a contract that’s worse on benefits, wages, work rules, and job security.
Bill Huber, president of Electrical Workers (IBEW) Local 827, believes the VCS layoffs are a foot in the door to lay off the better-compensated core techs.
Once the majority of VCS techs are fired, Verizon can change the job description of the few who are left and begin to lay off core workers.
In a meeting with union leaders, a Verizon official reportedly said that VCS is profitable; it’s just not profitable enough to appease Wall Street.
Verizon earned $20.5 billion over the last five years while paying its top five executives $258 million. In 2010 the company paid no federal income tax and received a $1.3 billion refund.
INVIGORATE
This latest attack on their union brothers and sisters has reinvigorated many Local 827 members. Since the layoffs were announced, the union has been holding weekly rallies at Verizon stores and locations around the Garden State, demanding movement on their stalled contract. Many were already riled up about the December firing of 40 East Coast union members for strike-related activity, six of them from New Jersey.
The day the layoffs were announced, Communications Workers Local 1101 held a rally of 400 across the Hudson River in Manhattan to support Rich Corrigan and David Ramos, two of those fired because of the strike. Corrigan said the company knows he didn’t do anything wrong, but it doesn’t care.
Chris McMahon, another fired striker, said the lesson to workers is that if two managers team up on a worker, he can get fired, no matter how fabricated or flimsy the case. "The process is the punishment," he said. "Whether you're right or wrong, you're looking at a year or two without income."
“This could have been any one of us,” said Pam Galpern, a Local 1101 member and organizer who emceed the rally. “It’s a blatant attempt by the company to intimidate workers and chill union activity. But we’re not going to stop until we get justice.”
TALKS GOING NOWHERE
Billions of dollars of concessions are still on the table as contract talks grind on month after month. The company’s latest proposal offers no wage increase this year and 1 percent increases in the next two years. Health care cost increases would include payments of up to $6,000 a year for a family and cuts in the percentage paid for many procedures.
Management is also looking for major pension concessions and essentially unlimited ability to contract out and transfer workers.
“We’re eight months into negotiations and no closer to a contract,” Huber said. “Their proposals have consistently focused on cutting to make us more marketable. CEO Lowell McAdam wants to get rid of the unions. The company has no desire to give us any new work, even at a lower pay scale.”
Last fall, McAdam said that Verizon was “asset heavy” on the wireline side. This can be interpreted as too many workers, too much real estate, and too many facilities—copper and fiber cable, central offices, poles, and terminals.
Huber thinks Verizon is preparing to sell the wireline part of the company to gain revenue, boost the stock price, and push off the books the pension and health care promises it’s made to generations of workers.
For the 99%, a sale would mean service nightmares for customers, increased attacks at the workplace, and grabs at pension funds. That has been the story in northern New England since Verizon sold its business to FairPoint Communications in 2008. By 2009 the much smaller company, heavily in debt, was in bankruptcy.
Verizon announced in December a $3.6 billion purchase of spectrum from its cable competitors. The unions fear this means Verizon will focus exclusively on its wireless products and stop installing fiber-optic lines, which deliver the bundled TV, internet, and phone service that competes head to head with the cable companies. That would drastically reduce the union workforce.
The union is working to get U.S. senators to reverse the deal on the grounds that it would create an unregulated monopoly, eliminate jobs, and hurt consumers.
THE LONG ROAD TO VICTORY
Union leaders and rank-and-file rabble-rousers have attempted to keep members fired up since the end of the strike, but much of the militancy that exploded during the two-week rumble has fizzled.
In November CWA organized a 150-mile march from Albany to Verizon’s Manhattan headquarters in conjunction with local Occupy groups. Informational picketing at worksites and leafleting at retail stores has continued, spottily. Verizon workers fanned out across the Northeast on February 28, telling commuters about the company’s tax evasion, corporate greed, and refusal to negotiate a fair contract.
But the 40 firings and local managers’ continuous harassment have had a chilling effect. Some members are frustrated with the inconsistency of mobilization efforts and the unwillingness of many of their co-workers to participate.
Members and leaders are debating how to regain leverage. After the strike, Verizon workers were held back by court injunctions that limited the number of pickets and kept them far from store doors. Some members wanted to defy the injunction and continue mass pickets at the stores.
But workers who defy injunctions must have their leaders behind them. Unions are big enough to take those kinds of hits; individual members are not.
The unions could adapt different tactics based on local circumstances. For example, Newark, New Jersey, is a city long ravaged by unemployment and racist disinvestment. The copper cables that feed the city’s schools and public buildings are in atrocious condition, a result of Verizon’s refusal to maintain older infrastructure. Workers spend hours trying to patch together broken pieces of wire.
CWA and IBEW could join with community groups that are already organizing around jobs and education to demand that Verizon hire in Newark rather than lay off.
Picketing at Apple stores that sell Verizon Wireless products could bring some international attention to the fight. The conditions in the Chinese factories that make iPads have become notorious around the world.
Or perhaps the unions could call for an Occupy Verizon day, bringing hundreds of workers to selected high-traffic stores to take them over.
The Verizon strike reminded us how much power workers have, more power than many of us realize. The data pipes that feed the world’s financial markets flow through our central offices. The gadgets everyone depends on are powered by the network we maintain. With bold leadership, our might could be felt around the world.
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Pensions are Definitely Under Attack--a Serious Trend |
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Rhode Island Pension Cuts Set Chilling Precedents
Brian Chidester
| April 19, 2012
If you thought retiring would help you avoid the ruination of living standards brought on by the economic crisis, Rhode Island’s pension overhaul just proved you wrong. Photo: AFSCME
If you thought retiring would help you avoid the ruination of living standards brought on by the economic crisis, Rhode Island’s pension overhaul just proved you wrong.
The changes to the pension system passed last November affect every public employee—current, retired, or prospective. The retirement age rose from 62 to 67 for new hires, and somewhere in between for current employees.
The overhaul moves all public employees into a “hybrid” system, combining a defined benefit plan with a 401k-style plan, thus shifting risk for bad investments onto workers. And it freezes cost-of-living adjustments for all retirees and retirees-to-be for 19 years, sending their standard of living tumbling.
The drama began in spring 2011, when newly elected state Treasurer Gina Raimondo, a Democrat, and Governor Lincoln Chafee, an independent, began focusing on the state’s unfunded pension liability and the looming crisis it represented.
Both politicians had been enthusiastically supported by the labor movement, partially on the basis that they would not touch pensions. But now they argued that the state had on hand only about half the money it would need to pay pensions for state workers and teachers over the coming decades.
The amount that the state owed but didn’t have was the “unfunded liability,” and to make the fund stable, Raimondo and Chafee argued, it had to be funded at a level closer to 80 percent. That’s the “green” level that private sector pensions need to reach under the federal Pension Protection Act.
But that rule doesn’t have to apply to governments. When a corporation is bankrupt, retirees run the risk that pension funds will disappear with the company. Thus workers seek to have much lower unfunded liabilities.
But when a government goes bankrupt, it does not disappear. Even if its pension fund shrinks, it can still be raised again during better times or through increased revenues. The concern around the “unfunded liability” in this instance was used to cut benefits and hurt workers.
WHERE TO TURN?
In the media, free-market conventional wisdom pushed along an argument for bolstering the fund while avoiding increases to Rhode Island taxpayers. As the market was not likely to perform well enough to make up the shortfall, the only source left was workers’ pockets.
While Rhode Island teachers had always paid into the fund at rates of 9.5 percent of income, and state workers at 8.75 percent, the same was not true of the state. Rhode Island had raided the fund in the 1990s and never made up the difference.
Further problems came with Republican Governor Donald Carcieri in the 2000s. He cut state agency staffing levels and forced state workers into retirement early, thus reducing the base of workers paying into the fund.
The real tipping point came in April 2011, when the state Retirement Board voted to lower the projected rate of return on investment from 8.25 percent to 7.5 percent. By one change in accounting, the board suddenly increased the unfunded liability by $1.4 million and doubled the burden on state agencies and local school districts.
Said pension policy analyst Tom Sgouros, “It’s the triumph of the technocrats who make tremendously value-laden judgments and disguise it as technical details.”
The now-inevitable move to cut benefits sped forward in August, when the city of Central Falls went bankrupt and retirees there saw their pensions cut in half.
WHAT WAS LOST
Chafee and Raimondo pushed a plan aimed at cutting benefits for all retirees while forcing current workers to pay more into the system.
Most important, they started the shift from the traditional defined-benefit pension toward a defined-contribution, 401k-style plan. The hybrid plan effectively puts more risk onto workers and retirees. If the market does not perform well, they’ll absorb the losses.
The hybrid would pay benefits to future retirees at 40-57 percent of the average of the last five years of pay from the defined-benefit side of the plan, plus a portion from the defined-contribution side to lift the overall benefit to around 70 percent of pre-retirement income.
This is a decrease from the current 75 percent rate. Of course, if the market crashes again, it could be much lower.
The plan also eliminates any cost-of-living adjustments for the next 19 years for everyone, including current retirees already receiving benefits. The result is a direct impoverishment of Rhode Island’s public sector workers in retirement.
RESISTANCE
As the vote on the legislation neared in November, unions mobilized to fight the impending disaster. They launched an information campaign among members, including a widely circulated YouTube video, brochures in the mail urging workers to contact legislators, and meetings around the state.
A rally drew up to 5,000 union workers to protest the assault. Unfortunately, the unions’ message came down to “save our pensions” for the roughly 25,000 current teachers and state workers and roughly 22,000 retirees.
At the same time, business groups poured more than $500,000 into television ads supporting the pension cuts. The same groups also contributed the maximum amount to major legislative leaders, all Democrats, after the legislation was approved.
It passed overwhelmingly, with 77 of 94 legislators approving. A Brown University poll released shortly after showed 60 percent support for the bill among the voting public, a clear indication that the business campaign had succeeded in vilifying public workers.
Ironically, just as the overhaul was being pushed through, the Occupy movement was refocusing the public discussion around “we are the 99%.” It was not enough to stop the attack on public workers.
PRECEDENT SET
According to the Pew Center, Rhode Island was one of 35 states to enact pension changes in 2010 and 2011. But while most of those attacks affected only employees yet to be hired, Rhode Island’s was unprecedented in its scope and depth—hitting both current employees and, through the COLA freeze, current retirees.
Chillingly, Fitch Ratings, a major credit rating agency, speculated that “the sweeping nature of the reform may inspire similar efforts in other states grappling with large unfunded pension obligations.”
In the aftermath, Raimondo has garnered national attention. She has the highest approval rating of any Rhode Island politician. Her campaign fund grew by over $200,000 last summer, to over $500,000 total, during a time in which she did not organize any fundraisers.
Like Andrew Cuomo in New York and Deval Patrick in Massachusetts, she emerges as a well-known pro-business Democrat, the sort of politician who can get the job done for the corporations—without the clownish rhetoric of a Tea Party Republican.
GOING LOCAL
The battle now moves to the field of municipal pensions.
The state’s cities and towns face massive budget crises, precipitated by a systematic and catastrophic decrease in state aid to municipalities over 20 years. Chafee announced a plan in March that would shift city governments’ financial pain to workers, driving down their compensation and eliminating jobs while cutting services, such as trash collection and care for the elderly.
While the number of workers affected will be smaller, the effects will likely cut deeper.
The plan would give municipalities the freedom to freeze COLAs for current retirees, as well as reducing the amount of tax-free benefit on accidental disability pensions. It would hand municipalities power to disregard an expired contract and impose conditions, or refuse to pay newer teachers their step raises.
The story of pension “reform” in Rhode Island is a cautionary tale for the labor movement. While the state’s unemployment rate is now 11 percent—the second-highest in the country—94 percent of corporations here pay nothing in taxes. The name of this game is austerity, and it’s supported by both parties as well as the sometimes “independent” governor.
In order to fight it, our unions will have to demand the real solution to this crisis: tax the corporations and the rich!
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Class Struggle in the US from the 2008 crash to the Eve of the Occupations Movement |
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Class Struggle in the US from the 2008 Crash to the Eve of the Occupations Movement
Loren Goldner discusses working class and capitalist responses to the crisis since 2008.
Since July of 2011, the mainstream media have been increasingly talking about a “double dip” “recession” in the United States But we can safely assert that for most working people, the “recession” has never ended, and is about to get worse.
Background
To understand the class struggle in the United States since the financial meltdown of 2007–2008, we must briefly consider the history of the previous four decades, since the end of the wildcat insurgency of the late 1960s/early 1970s. The history of the American working class since ca. 1973 (as is well known), has been an almost uninterrupted wave of defeats and rollback. This has been described as a “class war in which only one side was fighting.” Real wages have fallen in those decades by a conservative estimate of 15 percent, and starting as early as 1960, the one-paycheck blue-collar family began to disappear. Today, in a typical working-class family, two to three paychecks are necessary, and at least one is required to cover housing costs (typically 50 percent of household income) alone. The average work week has increased at least 10 percent for those holding full-time jobs; in reality, the work force increasingly resembles the “hourglass society” with “professional strata” working 70-hour weeks, and a majority of the population casualized into irregular part-time work. The top 10 percent of the population has claimed roughly 70 percent of all increases in income over the same period. Large parts of the old industrial Northeast, it is once again well known, have been turned into the “rust bowl,” with low-paying, dead end “service” jobs (e.g. Wal-mart) replacing the old, moderately paid and relatively secure blue-collar jobs. The United States competes with South Korea for having the most dangerous workplaces in the “advanced” capitalist world, with 14 workers killed on the job every day. 2 percent of the population (seven million people), largely black and Latino, are awaiting trial, in prison or on parole, in large part the result of the “war on drugs.” With hundreds of thousands of people losing homes and apartments after losing their jobs, homelessness has soared, intensifying the “war on the poor” in police harassment, herding people into fetid shelters that are little more than prisons, and the criminalization of street people.
This, then, is a snapshot of social reality in the “richest country in the world.”
Decline of Strike Activity
In the face of this capitalist offensive since the 1970s, the classical strike, not to mention the wildcat strike, declined to near-invisibility. 20 percent of American workers were involved in strikes or lockouts each year in the 1970s, and only 0.05 percent in 2009. The old industrial unions were seriously weakened by de-industrialization and capital-intensive innovation requiring fewer workers; they fell from 35 percent of the work force in 1955 to 12 percent today, and the majority of those remaining are in public sector unions. In order not to be misunderstood: most of the major unions, up to 1973, were fighting the rank-and-file wildcat insurgency, not the capitalists. Nevertheless, their loss of membership reflects in part their inability to even continue the “business unionism” they practiced into the 1970s.) Those workers who retain regular jobs with decent wages and benefits, when they do strike, have almost without exception remained within the bounds of legality and narrowly-defined “bargaining units” that guarantee defeat before the struggle begins.
Pyramiding of Consumer Debt
The American working class and “middle class” (an ideologically-loaded term tied up with the nearly-extinct “American dream” of a steady job, home ownership and a decent retirement) partially compensated for the declining real wages after the 1970s with ever-deepening consumer debt. Beginning in the 1990s, this was complemented by the housing bubble, propagated by the media-touted myth that “housing prices never go down,” and fed in the 2000s by the “sub-prime” bubble, when virtually anyone could get a mortgage and buy a home, or get a second mortgage, and use these imaginary “assets” as a basis for further credit. A large part of the “recovery” from the 2000–2003 meltdown of the dot.com bubble was related to housing construction and the industries feeding into it, such as appliances and furniture. This piling up of consumer debt by working people, blue or white collar, paralleled the unprecedented increase of state (Federal, state and municipal) debt, and the external debt of the United States (total net dollars held abroad, minus U.S. assets abroad) of at least $10 trillion.
Thus the actual eruption of the crisis with the 2007 bursting of the real estate bubble, followed by the spasms set off in 2008 in the banking sector, was merely the culmination of a long process of buying time with debt pyramiding since the 1970s, reflecting an underlying crisis of profit (and ultimately of value in Marx’s sense) in the “real” economy. But that is, for the purposes of this article, another story.
The Political Dynamic
One must not overlook the weight of the November 2008 election of Barack Obama (elected in all probability by the outbreak of the crisis in October, weeks before) in the overall social climate. As in 1929–1934, the great majority of the US population has initially reacted to the crash with stunned silence. Obama, denounced by the “right” (the Republican Party, and in the past two years the radical right Tea Party faction of the Republicans) as a “socialist” (not to mention a “Muslim,” and even a “Marxist”), in fact has carried out policies to the right of his predecessor George W. Bush in almost every area. But the response to them has been muted because his liberal base has given his government every benefit of the doubt. Obama has intensified the “war on terror,” which increasingly is extended to domestic opposition ; he has deepened the US involvement in its losing wars in the Middle East (Iraq, Afghanistan) and drone bombings in Pakistan. His “economic team” included well-known hatchet men such as Lawrence Summers (who as Undersecretary of the Treasury had supervised the pummeling of South Korea in the 1997–98 Asia crisis), Paul Volcker (who as head of the Federal Reserve Bank had administered the deep recession of 1979–1982) and Tim Geithner (former head of the New York Federal Reserve Bank). This team has engineered huge bail-outs of the collapsing banks and real estate institutions, guaranteeing trillions of dollars of bad loans at 100 percent, while doing little or nothing for the blue and white-collar workforce, not to mention the ever-growing marginal and homeless population. Obama’s Orwellian health care “reform” (also denounced as “socialist”) was virtually written by the big private health insurance companies, which dominate the retrograde U.S. health care system. In December 2010 Obama extended unemployment benefits in a “deal” with Congress that also extended Bush’s tax cuts for the rich, which had cost the Federal government $200 billion a year in lost revenue every year since 2001, while the wars in Iraq and Afghanistan have cost $1.5 trillion, if not more. His administration has overseen more deportations of illegal immigrants than in all the Bush years, falling most heavily on the marginal Latin Americans who came into the country during the pre-2007 housing boom to work in construction, and who lost those jobs when the boom collapsed. In the June–July Washington charade over the US Federal deficit, the radical right (Tea Party) minority, with huge leverage over the lower house of Congress, gave Obama cover to shift even further to the right, preparing for big cuts in “entitlements”—another ideologically-loaded term referring to medical care for the poor and elderly and for the Social Security system for retired people. These cuts will emerge from the “bipartisan” super-committee, composed of six Democrats and six Republicans, due to enumerate in November the cuts that no one wanted to specify in the resolution of the summer standoff. All these developments illustrate the historical role of the Democratic Party, namely to enact policies which would arouse serious opposition if carried out by Republicans.
Good cop – bad cop
The American political system has been described as consisting of a right-wing party and a far right-wing party; since at least the 1880s, the two dominant parties have been engaged in a “good cop/bad cop” routine. The poorer 50 percent of the population does not vote, and official politics has receded into a shadow play that feeds a general passivity and cynicism. This is one of the contexts that explain strange phenomena such as the current Tea Party; when people do mobilize, right-wing and (less in evidence today) left-wing populisms (the revolt of the “little guy”) are the first safety valves of the system.
The Tea Party emerged as a force on the right wing of the Republican Party starting in 2009, expressing better than other organized political groupings the right-wing populist rage which has been part of the American political landscape, off and on, since the late 1970s. It represents a “declining demographic” of older, white, “middle” and “upper middle” class people who imagine that America’s problems can be solved by a strict balanced budget at every level of government and therefore a “minimal state” overseeing an unfettered “free market.” Such an economy never existed, even in the pre-1914 era when the state was a much smaller part of “GDP” but still played a central role in tariff policy, Indian removal for the expansion of the southern slave economy, and land seizures for railroads and canals. The real content of this Tea Party mirage would of course be a great strengthening of state repression, and the military maintenance of the (declining) U.S. empire, while gutting all remaining “social” dimensions of the state that the US radical right associates with the “socialist” New Deal of the 1930s and Lyndon Johnson’s “Great Society” of the 1960s. Its overwhelmingly white social base points to a (largely) unspoken but very real racial agenda of people frightened by demographic trends pointing to a white minority in the population by 2050, and by a black president. The Tea Party’s real function in U.S. politics is to allow the “center” (Obama et al.) to move farther to the right, permitting the “center” to appear as a rational, sane alternative to the “market fundamentalists.”
It is important to note that a near-universal belief that the crisis was “caused” by some elite, whether bankers or government regulators, drowns out any serious analysis of the underlying “crisis of value,” of which banks, consumer credit, real estate bubbles or government regulation are mere epiphenomena.
In November 2010, right-wing populist rage at Obama’s “socialist” measures (the bailout of the banks, health care “reform,” watered-down and mainly symbolic attempts at government regulation of finance) led to massive Republican gains in both houses of the US Congress, wiping out a Democratic majority in the (lower) House of Representatives and almost capturing the Senate. Much of Obama’s 2008 base, disappointed (or disgusted) with his virtually open rule in the interests of big capital, simply stayed home. (One should not overlook the right-wing populist rage, rarely articulated openly, at Obama’s black skin.)
The “Recession” and Muted Resistance
Since fall 2008, the official unemployment rate in the United States has reached 9.1 percent, and is in all likelihood closer to 15 percent, with figures endlessly “revised,” including anyone who works one hour a month as “employed” and not including millions of people who have given up looking for work altogether. Hundreds of thousands of people have lost their homes after losing their jobs, especially in the previous “boom” areas such as California’s Central Valley, Las Vegas, or Florida; millions more are holding mortgages that are “under water” (higher than the actual value of their homes). There are years of backlog of empty houses and real estate prices continue to fall. At this writing—late September 2011—world stock markets have been gyrating wildly, which may outdate these figures within days.
One striking phenomenon connected to the housing collapse is the near-absence of collective resistance to foreclosures and evictions. This is an important contrast to the early 1930s, when in New York City (for example) thousands of people gathered to protect neighbors threatened with evictions, or in rural areas where farmers (often armed) attempted to protect farm land from seizure by banks. One comrade in one of the most economically-devastated cities (Baltimore, Maryland), which has rivaled Detroit in decline since the 1970s, reports that the great majority of evicted or foreclosed people there are simply “ashamed” of their situation, conceal it from neighbors, and leave quietly in the night.
Attacks on Health Care and Pensions
Since 2007–2008, overt class struggle has shifted to an important extent from the work place to the confrontation with the bankrupt state, at every level (Federal, state and municipal). But this shift was prepared by the earlier defeat of workers in virtually every blue-collar industrial sector, headed by the auto workers. Public sector workers and their services, after decades of propaganda about the superiority of privatization, can be demonized as privileged, overpaid parasites because they are the last workers still benefiting from relatively secure jobs and benefits. Since blacks are disproportionately represented among public sector workers, this demonization in some quarters also flows from a muted racial agenda.
A near-omnipresent dimension of this confrontation is over health care costs, given America’s retrograde private health care “system.”
The United States is the only “advanced” capitalist country having no universal health care. In 2009, 50 million people had no health insurance. Health care costs amount to 15 percent of “GDP,” and are projected to rise to 20 percent by 2020. Canada, with a universal health system, spends 10 percent. It is estimated that the elimination of private health insurers (HMOs, or Health Management Organizations) and their “administrative costs” would eliminate 20–30 percent of health care costs. Further costs are added by the close relationship between the major pharmaceutical companies (“Big Pharma”) and the political class. (Federal law, for example, forbids states to buy cheaper generic drugs from Canada.) A majority of Americans favor a “single payer” (universal) health system, but the mainstream political parties and the media have imposed a virtual blackout on discussion of that alternative.
Even before the full eruption of the crisis, many of the strikes that did occur were focused on health care. (For many people, particularly those with families, the private job-related health plan is as important, sometimes more important, than the wage itself.) As the crisis greatly reduced tax income of states and cities, they were increasingly unable to pay health care and pensions for retired public employees. At every level, politicians, demagogues and think tanks bemoan “spiraling health care costs” but silence any serious discussion of their true sources in the control of health care by private insurance companies and the bloated prices charged by the big pharmaceutical companies.
Starting in 2014, anyone of the 50 million people currently without health insurance will be liable to a considerable fine if they do not sign up with a private health insurer; current rates for an individual are on the order of $500 per month; for a family more than $1000 per month. (While this article was being written, a Federal court ruled this aspect of “health care reform” unconstitutional, but the Obama government will appeal the decision in a higher court.)
The health care crisis goes together with the crisis of pensions in both the private and public sector. Starting in the 1990s, more and more employers shifted from paying for full “defined benefit” pensions to paying into “40lks” where employer and employee both pay into a fund that is then invested…in the stock market, naturally with fees for the stock brokerage. Studies have shown that 40lks leave retirees with only 10 to 33 percent of what the older defined benefit pensions paid (and which only covered one-third of the work force at their peak). This trend, combined with the coming Congressional attacks on Medicare and Social Security, points to accelerating impoverishment of the elderly. The crisis depletes the budgets of state and local governments, leaving them unable to pay the pensions of retired public employees. (In November 2009, for example, Philadelphia transit workers struck for six days to win increased pension benefits.)
The Last Industrial “Worker Fortress”: Collapse of the United Auto Workers
A key victory in the decades-long attack on the US working class—in some sense the end of an era—was the acceptance in 2007 of a two-tier contract at the “Big Three” auto makers (GM, Ford, Chrysler) by the United Auto Workers (UAW), a contract that was rushed through to approval despite wide opposition from rank-and-file workers. Henceforth, new hires at the Big Three started at $14 per hour, compared to $27 per hour for older workers. The UAW contract since World War II had been a “flagship” agreement for many other industrial sectors, and in the next three years the number of two-tier union contracts in the United States increased from 2 percent to 12 percent.
In 2009, in the midst of the financial meltdown, GM and Chrysler both declared bankruptcy and were taken over by the US government. The bankruptcy was merely a strategy to restructure their debt obligations, first of all to retired auto workers. When the two companies emerged from bankruptcy weeks later, the UAW became a major shareholder in both of them. Through the bankruptcy proceedings, the companies had freed themselves of $50 billion owed to the health care fund for retired workers. A new fund, called VEBA (Voluntary Employee Beneficiary Association), will be administered by the UAW and will be based exclusively on the market value of GM and Chrysler stocks. A collapse of the stocks, or another bankruptcy by either company, will leave two million UAW retirees and their dependents with no health care, and their pensions would be cut or assumed by the US government at some discount.
Attacks on Public Employees; Wisconsin
Having knocked out the union that had been the model for wage agreements in U.S. industry for sixty years (total employment at the Big Three’s U.S. plants had been declining for decades although foreign auto firms have invested heavily in non-union plants in the South), capital intensified its offensive in 2011 by attacking public employees and public services, best illustrated in the state of Wisconsin but with similar developments in Ohio, Indiana, Illinois, California, Connecticut, New Jersey, New York (state) and New York City. In Wisconsin, a newly-elected Republican governor, Scott Walker, attempted to abolish collective bargaining, leading to the biggest (and most sustained) post-2008 working-class mobilization to date.
In the November 2010 elections, Scott Walker and the Republican Party took over the Wisconsin state government in the general Republican landslide. (It later emerged that Walker had close ties to the far-right billionaire Koch brothers, who clearly saw Wisconsin as an experiment for strategy and tactics to be used elsewhere.) Once in power, they gave major tax breaks to the wealthy and to corporations, and then announced a state budget deficit, made far worse by those breaks. Walker proposed legislation for massive cuts in social services, enabling the state government to privatize at whim, and abolishing collective bargaining rights for public employees. Even these meek efforts, as the supposedly safe alternative to mass strike action, failed.
In short, the social controls on resistance to these attacks, the Democrats and the unions, did their work well throughout the country.
Smaller Struggles, Defeats and One Wildcat
Smaller struggles in the United States have also ended in partial or total defeat. In November 2008, workers at the Republic Doors and Windows factory in Chicago started to notice machinery disappearing from the plant during the night, a sure sign of an imminent closing. On December 2, 2008, company management announced that the plant would close in three days. On the scheduled closing day, Dec. 5, the 240 mainly black and Latino workers (members of the United Electrical Workers (UE), a union with a slightly more militant reputation than most) occupied the plant, demanding severance pay and health care benefits, and on Dec. 10 the workers accepted a severance package averaging $7,000 per worker and two months of health care. Management blamed the Bank of America for cutting off credit, but had recently bought a non-union window factory in the nearby state of Iowa. Workers picketed the bank, and workers from elsewhere brought food, blankets and sleeping bags during the occupation.
While the Republic workers had indeed won something, they did lose their jobs, a small fact overlooked in much of the “progressive” labor and left milieu’s hoopla about the struggle.
Another struggle with an even worse outcome for workers was the strike at the Stella d’Oro biscuit company in New York City. On Aug. 13, 2008, 135 workers in the Bakers Union walked out of contract negotiations. Originally a family business, with many workers having decades on the job, Stella d’Oro was taken over by a hedge fund that was demanding a 28 percent pay cut, an end to overtime pay for Saturdays and a 20 percent employee contribution to the health care plan. The union insisted on a legalistic strategy, doing nothing to prevent scabs from entering the plant, truckers from delivering flour, or to expand the strike to other bakeries. In May 2009, the workers offered to return to work without a contract, and were turned down. The union also convinced workers to rely on a favorable ruling from the National Labor Relations Board (NLRB), the US government “mediation” body. The strike continued until the end of June 2009, when the government National Labor Relations Board (NLRB) did rule that the hedge fund was engaging in “unfair labor practices” by refusing to bargain with the union. In early July, on the day when the Stella d’Oro workers returned to their jobs, management announced it was closing the plant, and proceeded to do so.
In Boron, California, in late January 2010, five hundred miners working for Rio Tinto (the third largest mining company in the world) were locked out after rejecting a contract which would have eliminated pensions, reduced wages, and introduced labor “flexibility”—justified by “global competition.”
In mid-May, ILWU (International Longshore Workers Union) Local 30 accepted a new contract, approved by the workers by a 3-to-1 margin. The new contract included a 2.5 percent-a-year pay increase; for new hires, company-paid pensions will (as discussed above) be replaced with employee-funded 401(k) plans with a 4 percent company contribution. Paid sick days were reduced from 14 to 10 a year.
The ILWU had, once again, conducted the strike on a completely legalistic and localist basis. Scabs and managers, protected by a large-scale police effort, worked throughout the strike despite efforts by the Boron workers to stop them. Widespread support in the area and in nearby Los Angeles was never mobilized. Instead, the union made impotent appeals to Rio Tinto’s shareholder meetings and held American nationalist rallies at the British consulate.
As in the Republic case, the union and the “progressive” left milieu proclaimed victory.
In August of this year, 45,000 telephone workers in the northeastern U.S. went on strike against Verizon, organized in the CWA (Communication Workers of America) and the IBEW (International Brotherhood of Electrical Workers). Verizon wanted to “adjust” the contract to cut pensions, change work rules and make employees pay more for health care, citing the steady decline in landline service and the shift to cell phones and the Internet. Once again, health care was the single most important issue. The strike was “suspended” after two weeks, with workers returning to the job with no contract and bargaining continuing with no job action; the CWA claims that the strike showed its “seriousness.”
Finally, to end this survey of strikes on a more positive note, perhaps the most significant wildcat strike in years took place in the Pacific Northwest on Sept. 8. EGT, a Portland-based company, had built a state-of-the-art grain export terminal at the Longview, Washington port, as part of a global supply chain for shipping grain from the US to growing Asian food and bio-fuel markets. EGT is owned by Japan-based Itochu Corp, South Korea’s STX Pan Ocean and St. Louis–based Bunge North America. Itochu ranks 201 on Fortune’s Global 500 list of the world’s largest corporations, and Bunge is number 182. These companies want to operate the grain terminal without workers from the ILWU (International Longshore Workers Union) breaking the 75-year agreement established for the west coast by the San Francisco General Strike of 1934. In response, union members have been blockading train tracks and holding pickets, which led to confrontations earlier this summer with cops, and a Federal injunction banning all picketing. The union broke this injunction and on the night of September 8th, hundreds of longshore workers broke into the terminal, detained the security guards, and sabotaged the equipment, dumping all the grain on the railroad tracks so the trains would not be able to run. This amounted to millions of dollars of damage, and the companies will have to hire scabs to clean up the mess. There was quite a standoff with the police, and reports of workers essentially intimidating and backing down the cops with baseball bats from which they made their picket signs. In support of this action, the Seattle, Tacoma, and Everett ports had a one-day wildcat shutdown the following day.
ILWU officials claim they don’t know what’s going on, as if it were a spontaneous rank and file upsurge, but it seems there was actually a union meeting called during the day to gather the ranks and discuss further steps after the Longview sabotage action. The ILWU has control of hiring out of their halls (which is exactly what they’re fighting to defend now), and therefore they can call a meeting at anytime where workers won’t work but will go to the meeting instead. This may just be the first step, and there will be more actions to come. So far everything has been done inside the union and has been kept relatively secret, so there was no general call for solidarity actions in Seattle. It remains unclear if the companies will fight hard to set a precedent breaking the ILWU’s 75-year jurisdiction over the ports, starting with Longview, or if they will try the same tactic in other West Coast ports. This could just one local company picking a fight, and they could back down and settle for a compromise in the face of this militancy.
One interpretation of the situation is the ILWU, like the rest of US unions, is up against the ropes and is throwing some punches before it falls to the ground. But another interpretation is that they’ are feeling their strategic position in the current economic conjuncture and are standing up for themselves because they can.
These actions had an instantly electrifying effect among militants in the Seattle area. After a year of struggles against police brutality in Seattle, it was inspiring to many people to see a cop admit he was intimidated when workers confronted him with baseball bats. Some younger unemployed people who often question the relevance of labor struggles are now showing interest because these workers are showing some real backbone against their common enemy.
Attacks on Public Education and Student Mobilization
Education is another dimension of social reproduction in which state austerity has led to mass mobilization. We can set aside for a moment the nature of education at every level as a vast credentialing machine designed to maintain class distinctions and hierarchy, and to prepare people to accept workplace and social discipline in the tens of millions of jobs that exist (such as the FIRE—finance, insurance, real estate—sector) only because society is capitalist. A communist society will revolutionize education, and “work,” beyond recognition. Be that as it may, beneath the elite (mainly private) schools (which now typically cost $40,000 a year to attend), the “cinder block” state and community colleges, in the aftermath of de-industrialization, remain the main path for working-class youth to jobs above the McDonalds level.
In California, where public education, as late as the 1970s was almost free, tuition at every level (university, state college, community college) has risen to thousands of dollars a year, and most students have to work at least part time to stay in school, as well as accumulate debts from student loans that can total $100,000 upon graduation. Due to cutbacks in elementary and high schools, resulting in part from the right-wing populist “tax revolt” of 1978 and since, the quality of California’s public schools (elementary and high school) dropped over several decades from 1st in the country to almost last, on a level with Mississippi and Louisiana. Schools deal with ever- increasing class size, inadequate materials (textbooks, etc.), attacks on teachers’ unions and the lowest funding per student in the United States. Combined with the soaring rates of incarceration (among the highest in the United States) it became notorious in the 1990s that the state of California had more black men in prison than in college. Both the Bush and Obama administrations have attempted to deal with this long-term crisis by imposing ever-greater regimentation of curriculum, reducing teachers to preparing students at every level for standardized achievement tests. (U.S. students notoriously score at the bottom in comparative international tests of high school students.)
Thus in the fall of 2009, students at the Los Angeles and Berkeley campuses of the University of California (UC) mobilized against further tuition increases, and in Berkeley thousands confronted the police. This was a prelude to a national mobilization on Mar. 4 2010, in which California was again at the cutting edge. This time, the movement extended well beyond the relatively elite UC system to the state colleges and high schools—where teachers and students walked out. In Oakland, California, hundreds of students shut down a major freeway for several hours.
The California actions were the largest of similar mobilizations in more than 20 states on March 4, none of which succeeded in reversing the cuts.
Strikes in the Georgia, California Prisons
All the trends of contracted social reproduction, from mass unemployment to public unions of police and prison guards to the warehousing of black and Latino youth in the prison system, came to a head in the Georgia prison strike of December 2010 and a major prison revolt in California in July of this year. The Georgia strike began on Dec. 9 with thousands of prisoners, black, white and Latino, participating in seven prisons around the state. The strikes were coordinated by cell phone. The main demand was a wage for prison labor. Other demands were for more education, better living conditions including better food, access to medical care, and rights to family visits and telephones.
The strike was initially planned for one day, but prisoners decided to continue after guards responded with violence and beatings. Guards destroyed personal property of prisoners, shut off heat and hot water, and put prisoners into solitary confinement. State authorities attempted to play down the extent of the strike, and news coverage disappeared from mainstream media in a few days. The strike ended after six days, with no apparent resolution, except a state promise to “investigate.” In January, seven guards were suspended without pay for violence against prisoners.
For years, California has been in the “vanguard” of maximum security “supermax” prison construction in the United States. One of the most notorious of these installations is in Pelican Bay. For the first three weeks of July, prisoners in the solitary concrete isolation chambers of the “Security Housing Unit” (SHU) at Pelican Bay went on a hunger strike, demanding an end to group punishment and snitching enforced by prison authorities, and demanding educational programs, human contact, weekly phone calls, and access to sunlight and better food. The strike spread to thirteen prisons ultimately involving 6,600 prisoners. SHU prisoners are locked in cells without windows 22 ½ hours per day under permanent fluorescent lights.
The strike ended on July 21 when prison authorities agreed to permit SHU inmates to have wall calendars, woolen caps for the winter time (the cells are unheated) and to “review” the enforced snitching.
Conditions in California prisons (with overcrowding at 200 percent capacity) are so outrageous that the reactionary U.S. Supreme Court found them to be in violation of the US constitutional amendment against “cruel and unusual punishment.”
Conclusion
The post–2007/2008 official response to the crisis has been nothing but an attempt to restore the status quo ante for capital, propping up trillions in bank and real estate debt. U.S. companies have stockpiled trillions more but do not invest them; at the same time, they have launched a full-blown attack on the total wage, in terms of pay, health care, pensions, housing foreclosures, and education. Crumbling U.S. infrastructure is estimated by the American Society of Civil Engineers to need $2.3 trillion in repairs and replacement costs. The “social indicators” of the “richest country in the world” show it to be a society more polarized than it was prior to the world depression of the 1930s. Since the 1966–1973 working-class strike wave, American workers have undergone decades of rollback, losing one defensive struggle after another. In this “slow crash landing,” and especially since the meltdown of 2007–2008, the whole structure of post-1945 American society has come unraveled. In the midst of this, working-class anger is widespread, with as yet no coherent form of struggle emerging, which moreover stands in rather sharp contrast to recent upsurges in Tunisia, Egypt, Greece, Spain, France, Britain and Chile. How and when this process will be reversed remains a totally open question.
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Locked Out Workers--A Sign of Increased Employer Militancy |
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Locked Out Workers-- A Sign of Increased Employer Militancy !!
Locked-Out Workers to Embark on Journey for Justice
Amy Masciola, a union campaign consultant, sends us this.
More than six months ago, American Crystal Sugar Co. locked out more than 1,300 sugar beet workers in the Red River Valley of Minnesota and North Dakota. Two months ago, Cooper Tire & Rubber Co. locked out more than 1,000 workers in Findlay, Ohio. Last week, Caterpillar announced it would shut down a plant in Ontario, just over one month after locking out 500 workers. Rio Tinto Alcan locked out 750 workers in Quebec Jan. 1. HealthBridge locked out 800 nursing home workers in Connecticut in December. As Laura Clawson at the Daily Kos notes, “For evidence of a war on workers, look no further than the rise of the lockout.”
Steven Greenhouse of The New York Times wrote recently that the number of strikes has dropped precipitously in the past two decades, while lockouts now “represent a record percentage of the nation’s work stoppages.” Greenhouse quotes professor Gary Chaison of Clark University, who says:
This is a sign of increased employer militancy. Lockouts were once so rare they were almost unheard of. Now, not only are employers increasingly on the offensive and trying to call the shots in bargaining, but they’re backing that up with action—in the form of lockouts.
Unions and our allies are fighting back against this war on workers. Beginning Feb. 22, locked-out workers from American Crystal Sugar Co. and Cooper Tire & Rubber Co. will start a 1,000-mile journey across America’s heartland. They will visit six states in six days, taking part in rallies, fundraisers and other actions with local union members and allies. Locked-out workers will take their message to supporters—and call out the perpetrators of the war on workers.
From Fargo to Findlay: A Journey for Justice is a joint project of the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM) and the United Steelworkers (USW).
The Journey will begin with a rally in Fargo, N.D., and will make stops in Minnesota, Wisconsin, Illinois and Indiana, before concluding in Findlay, Ohio. For workers making the Journey, the message is simple: They want to keep their union, and they want to go back to work.
As Paul Woinarowicz, a BCTGM member who has worked for Crystal Sugar for 34 years, told Greenhouse, the lockout was:
just another way of trying to break the union….It was just like a knife stuck in your heart.
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Concession Bargaining is at a Critical Crossroads |
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When is Enough Finally Enough.....
Concession Bargaining is at a Critical Crossroads!
As We Prepare for Our 2013 Contract....what can we expect?
You see it happening all over this country. We have documented and posted articles from all over this country -- both Private and Public Unionized Employees -- being attacked on wages and benefits. If you haven't been paying attention, please read the articles at the links that follow. And sometimes, it seems we are NOT ONLY fighting Corporations or Governments, but our OWN INTERNATIONAL UNIONS as well! It's very scary, and it's coming to a time of decision for all of us, 2013 is NOT that far away. You need to educate yourselves! You will need to PREPARE for it! As a group of unionized manufacturing employees, we will need to formulate our strategy and our response, and we will have to do it sooner, than later. Again, please read the articles at these links.
Concession Bargaining at Historical Crossroads
September 4, 2011 by jackrasmus
COMMENTARY: The following is an article on the history and evolution of concession bargaining in the US that is perhaps appropriate this labor day 2011. It briefly traces how concession bargaining at the shop level has, since the late 1970s, evolved, transitioned recently to the public sector, and now is morphing into an attack on the ‘social wage’ (social security, medicare, etc.) at the grand ‘political’ level as the economic class war in the US intensifies and moves into every ‘nook and cranny’ of the economy. We are witnessing in Congress and the Obama administration today (political) ‘management’ decisions to cut (social) wages just as for decades corporate management cut wages and benefits at the shop or company level. Of course, it’s the same ‘corporate management’ that has been driving both. Having accomplished much of their concession bargaining goals at the shop level in recent decades, they are now-through their political managers-attempting the same at the social level.
‘Concession Bargaining At the Crossroads’ by Jack Rasmus, copyright August 7, 2011
http://jackrasmus.com/2011/09/04/concession-bargaining-at-historical-crossroads/
Cuomo and NYS Unions Article-- http://www.nytimes.com/2011/07/17/nyregion/to-save-jobs-union-approves-big-concessions-in-deal-with-cuomo.html?_r=1
Cooper Tires Article -- On National Labor News page (left menu)
Harley Article --the article is on our Local Area Labor News page (menu on left)...please read it
Wage Tier Systems at the Auto Makers -- by LaborNotes
"It was a concession that has proved disastrous to new hires and seniority workers alike."
http://labornotes.org/2011/07/will-auto%E2%80%99s-three-tier-wages-be-table
DOESN'T IT FEEL LIKE A RECURRING NIGHTMARE? CONCESSION BARGAINING CAN NOT BECOME A WAY OF LIFE! IT IS DESTROYING THE WORKING MIDDLE CLASS! WE HAVE TO STOP PAYING FOR THE MISTAKES & FAILURES OF WALL STREET--BANKS, CORPORATIONS, AND GOVERNMENT--STATE & FEDERAL. THE 1% NEED TO SAY "NO MORE" & "ENOUGH IS ENOUGH!"
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