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Chicago Movers Stage Groundbreaking Strike

Wednesday, August 20th, 2014

kari-lydersenEvery morning, workers at Golan’s Moving & Storage in the Chicago suburb of Skokie are ordered to arrive at work by 6 a.m. to prepare trucks for the day. If they are late, they can be suspended for several days or otherwise disciplined. Yet they typically don’t even start getting paid until about 8 a.m.—when they board a truck bound for their assignment.

This situation is among the many injustices that spurred Golan’s workers to organize with the faith-based workers rights group Arise Chicago last year before unionizing with Teamsters Local 705. Since December 2013, the first contract negotiations have dragged on, with management canceling planned sessions 12 times in six months, according to the Teamsters.

So on July 28, about four-fifths of Golan’s workers walked out on strike. Negotiations are theoretically continuing, but Teamsters Local 705 business agent Richard De Vries says that the company officials walked out of their most recent session, on August 14, after just 41 minutes.

The union has filed various Unfair Labor Practices charges with the National Labor Relations Board, and a federal mediator was brought in to oversee the negotiations.Still, De Vries tells In These Times that these measures have so far not prevented Golan’s from essentially refusing to bargain. He thinks that the company is trying to delay signing a contract until December, at which point under labor law they can call for an election to decertify the union—because a year will have passed with no contract signed.

“This is our remedy: going on strike,” says De Vries. He reports that more than 80 workers out of a total of about 100 are on strike, including members of the company’s two separate sections, which do local and long-distance moves.

On Saturday, August 16, more than 100 supporters, including Teamsters members from other companies, joined the workers on the picket line. Leaders of Christian, Jewish and Muslim faiths spoke to the crowd and asked the owners—Israelis who reportedly named the company for the region Israel captured from Syria during the Six-Day War—to recognize the concepts of workers’ rights and human dignity enshrined in all three world religions.

Onesimo Peña was one of the workers who contacted Arise last summer, frustrated with what he told In These Times was “so many abuses” suffered by his co-workers. He also notes that in more than a decade working for the company, his wages have only risen from $12 to $12.50 an hour, even though he has often been called on in emergencies or for important jobs.

“We’ve tried too many times to get the owners to listen to us but they wouldn’t,” says Peña. “So we went to Arise Chicago.”

In turn, Arise connected the workers with Teamsters Local 705. And marshaling support for unionizing was easy, Peña remembers.

“Everyone was tired of this situation,” he says.

Shortly after the workers voted to unionize, Peña says his wages increased to $14 an hour. The company also started paying overtime and made a few other concessions, including with regard to safety. De Vries says he can only speculate as to why, though Golan’s may have been trying to dissuade workers from going on strike or trying to weaken the union in bargaining.

Golan’s workers don’t have insurance, paid sick days or vacation days or any other benefits. According to organizers, such as Arise Chicago’s Jorge Mujica, “There is wage theft all over the place,” including the aforementioned unpaid preparation work time, and logged hours that go missing from paychecks until workers complain.

Plus, workers’ wages are often further reduced by fines for a wide range of infractions. Jose Reyes, a Golan’s employee for 10 years, says he was once fined $700 because one of the other movers in the crew he oversaw had a small tear in his pants. Reyes tells In These Times that workers could also be charged for forgetting to leave the keys to their personal car with management before they head off to a job, or for failing to call the customer to say they are running late.

“There’s no warning, you get back from the job and they are waiting for you with a fine,” he says.

He and Peña also say managers have offered them incentives for reporting other workers for violations.

“They approached me and said, ‘If you turn people in, you will have your job forever, you can have a raise,’” says Reyes, who is on the union negotiating committee. “They were trying to buy me off.”

Worker Miguel Flores tells In These Times that under the terms worked by long-distance drivers who move customers to other states, he has earned only $40 for spending 10 hours unloading boxes at a home. (Mujica explains that this is likely technically legal under labor provisions for interstate commerce.)

Movers in the long-distance unit are particularly upset that they are not compensated for waiting time of up to a day or more if customers are not ready when they arrive. These employees are paid based on factors such as miles driven and the volume of the move. So when a customer isn’t ready, they’re forced to spend time on the road unpaid, sleeping and waiting in their truck when they otherwise could be earning money.

De Vries says payment for such “detention time” is a major demand in negotiations. So far, though, management has offered only token concessions during the negotiation sessions that have occurred. “They have agreed to pay for showers at a truck stop,” which cost a few dollars, he says. And in response to union demands for paid days off, Golan’s offered a total of $10 a day for up to 10 vacation days, De Vries continues.

Golan’s also employs workers under the J-1 visa “work and study-based exchange” program, drawing students from around the world for 90-day stays in the United States. Silviu Radu joined the program while studying for his Masters in business administration at a university in his home country of Romania. After starting work at Golan’s in June and got to know many of his co-workers. He hadn’t been present for many of the complications surrounding organizing and negotiating, so the strike came as a bit of a surprise to him.

“I rode my bike to work and everyone was outside,” he tells In These Times. “I was like ‘Hey guys, what’s going on?’”

Once he learned about the walkout, though, he promptly joined it, as did several other J-1 workers, according to Radu and De Vries. The visa does not allow companies involved in walkouts to staff J-1 employees, so Radu is looking for another job while spending time on the picket lines.

“You get to bond with your colleagues,” Radu says. “These are good people, hard-working people who help each other.”

The J-1 visa—which has drawn controversy in the past over its reported abuse by employers including Hershey’s—cost Radu about $2,000, he says, including other fees connected to the program. Even so, he notes, laughing, that he “was making $10.50 an hour on the truck.”

For its part, Golan’s has largely responded to the actions with denial. Two large green signs outside the company, dated August 12 and addressed to workers from company secretary Yehuda Bitton, read: “The many reckless and dishonest statements about Golan’s and me are fabrications by the union and its representatives. Those of you who have worked for Golan’s for many years know these statements are not true.”

A Golan’s official inside the company during the rally declined to talk, and the spokesperson he referred In These Times to did not return a call for comment.

The company has also attempted to play on the fears on many of its workers regarding deportation. The signs, which are written in English and Spanish, go on to read that the union has threatened to call immigration authorities. De Vries says the U.S. State Department found out about the strike through the J-1 students, likely spurring the company to make that statement. The union has not contacted immigration authorities and would not do so, he argues.

Various workers tell In These Times they are confident the strike will force the company into meaningful negotiations for a contract with significant improvements. They say they’ve heard customers have canceled jobs because of the strike, and that little or no work has been happening at Golan’s. During the Saturday rally a moving truck entered the facility, but because it was manned by only one employee, De Vries said it was likely just a “show.” “You can’t move furniture with one person,” he says.

“We’ve seen trucks leaving and then find them parked 20 blocks away; they’re not working,” Mujica adds.

De Vries says that very few moving companies are organized, and most non-unionized workplaces do not offer their largely immigrant workforce insurance or benefits. Hence, the Golan’s workers’ unionization and strike could be seen as a precedent-setting development for the industry.

Both Reyes and Peña says they take pride in their work and want to continue at Golan’s, only under better conditions. Still, Reyes says he tells his three kids, only half joking, “When you see a Golan’s truck, run and hide, so you don’t end up like me.”

This blog originally appeared in In These Times on August 19, 2014.  Reprinted with permission. http://inthesetimes.com/working/entry/17100/chicago_movers_stage_groundbreaking_strike

About the Author: Kari Lydersen, an In These Times contributing editor, is a Chicago-based journalist and instructor who currently works at Northwestern University. Her work has appeared in the New York Times, the Washington Post, the Chicago Reader and The Progressive, among other publications. Her most recent book is Mayor 1%: Rahm Emanuel and the Rise of Chicago’s 99 Percent. She is also the co-author of Shoot an Iraqi: Art, Life and Resistance Under the Gun and the author of Revolt on Goose Island: The Chicago Factory Takeover, and What it Says About the Economic Crisis. Look for an updated reissue of Revolt on Goose Island in 2014. In 2011, she was awarded a Studs Terkel Community Media Award for her work.

 

Labor Unions Champion More than Union Members

Tuesday, March 4th, 2014

berry craigLabor haters love to claim that unions only care about their own members.

The claims are baloney of course. Unions advocate for more than just men and women who pack union cards.

Unions champion the whole working class. No one understood that better than Dr. Martin Luther King Jr., who said:

“The labor movement was the principal force that transformed misery and despair into hope and progress. Out of its bold struggles, economic and social reform gave birth to unemployment insurance, old-age pensions, government relief for the destitute and, above all, new wage levels that meant not mere survival but a tolerable life. The captains of industry did not lead this transformation; they resisted it until they were overcome. When in the thirties the wave of union organization crested over the nation, it carried to secure shores not only itself but the whole society.”

On March 5, 1964, Dr. King, the Rev. Ralph David Abernathy and Jackie Robinson, the first African American Major League baseball player, helped lead more than 10,000 people – including several union members — in a march to the Kentucky state capitol in Frankfort. The march was in support of a bill introduced by State Rep. Norbert Blume of Louisville, a union-card carrying Democrat, that would outlaw racial discrimination in public places such as stores, restaurants, movie theatres and hotels.

Blume had been president of Teamsters Local 783 in the Falls City. Some of the union members who joined the procession were Sam Ezelle, secretary-treasurer of the Kentucky State AFL-CIO; Jimmy Stewart, business manager of Louisville Laborers Local 576; and union and civil rights activist W.C. Young of Paducah.

Blume’s bill didn’t pass, but the Louisville lawmaker didn’t give up. Too, the march helped provide important momentum for passage of the Blume-backed Civil Rights Act of 1966, the first such measure approved by a Southern state.
Union members, including Bill Londrigan, state AFL-CIO president, are expected to help swell the ranks of a 50th Anniversary Civil Rights March on the capitol on March 5. The special commemoration is sponsored by the Kentucky Human Rights Commission and the Allied Organizations for Civil Rights, a coalition that includes the state AFL-CIO, the A. Phillip Randolph Institute and the Coalition of Black Trade Unionists.

“The historic March on Washington for Jobs and Civil Rights where Dr. Martin Luther King, Jr. delivered his historic ‘I have a Dream’ speech included the input and close participation of trade unionists such as A. Philip Randolph, Bayard Rustin and Walter Reuther,” Londrigan said. “The participation and support of organized labor was also evident fifty years ago during the March on Frankfort when trade unionists such as Norbert Blume, W.C. Young, Sam Ezelle and Jimmy Stewart had significant roles in the march as well as strong support for passage of Kentucky’s historic Civil Rights Act of 1966.”

He added, “The upcoming March 5th march and rally in Frankfort represents another significant event when organized labor will again rise to the occasion to support and participate in this fifty-year commemoration of the 1964 March on Frankfort.  On March 5th, organized labor will again demonstrate our long and deep commitment to civil and workers’ rights, because organized labor knows that civil rights and workers’ rights cannot be separated and Kentucky’s labor movement is proud to stand for and struggle for both.”

I don’t know if union marchers in 1964 included Bill Sanders, Young’s good friend and union brother. Sanders headed the West Kentucky Building and Construction Trades Council in Paducah for many years.

Dubbed “Mr. Western Kentucky Labor,” Sanders once told me a story that’s another good example of how unions change “misery and despair into hope and progress.”

He recalled a Detroit woman, a stranger almost penniless and down on her luck, who got drunk in Paducah and ended up in jail. She had hurt her knee and needed medical attention.

Sanders’ office was close to the lockup. He remembered:

“The jailer came over to me and told me about her. He said, ‘Bill, you’ve got a union meeting this morning. Will you see what you can do?’ I said I would, and I asked him how much money she would need. The jailer said ‘$500 for her hospital bill and she’ll have to have some traveling money, too.’

“Well, we made up all that money. So I went down to the hospital and gave this money to that lady, and she said, ‘Mr. Sanders, when I get better, I’m going back to Detroit and go back to my husband and try to work things out.’ When she got well, she went back to Detroit, joined the church and got back with her husband. That’s the kind of things unions do that never get in the paper.”

Author: Berry Craig, AFT Local 1360

Maryland Unions Hit Jobs Jackpot with New Casinos

Sunday, January 26th, 2014

Bruce VailLabor unions in the Washington, D.C. area got an early Christmas present December 20, when Maryland state officials announced their approval of a plan to build a massive MGM Resorts International casino complex just a few miles from the nation’s Capitol building.

The news comes as a welcome sign of organized labor’s vitality in Maryland, which has seen falling union membership during the last decade. As of 2012, unions represented just 12.3 percent of Maryland jobholders—a decrease of 23,000 workers from the previous year.

One of Maryland labor’s responses to this challenge has been to lobby on behalf of expanded gambling long before casino construction ever takes place, usually in return for a mutually beneficial “labor peace agreement.” In the case of MGM Resorts, the gambling powerhouse received its approval from the Maryland Video Lottery Facility Location Commission with the help of an ad-hoc coalition of local labor unions, says John Boardman, an officer of D.C.-based Unite Here Local 25. He estimates that the $925 million project will generate about 2,000 temporary construction jobs and 4,000 permanent ones.

“We have a labor peace agreement with MGM, so I expect we will be moving pretty quickly to organize wall-to-wall,” Boardman tells Working In These Times. About 2,000 of the permanent casino workers are likely to be represented by Local 25, he says, with the remainder spread out among Teamsters Local 639, International Union of Operating Engineers (IUOE) Local 99 and International Alliance of Theatrical Stage Employees (IATSE) Local 22. Similarly, the 2,000 temporary construction jobs are expected to be filled by union members linked to the Washington, D.C. Building Trades Council (AFL-CIO), a regional alliance of 15 union locals of electricians, ironworkers, painters, plumbers and others.

As the sixth major gambling site in the state, MGM’s construction signifies the emergence of casinos in Maryland as “a billion-dollar industry,” notes James Karmel, a historian, author and gambling industry analyst. This growth has been aided in large part by the lobbying efforts of local labor, particularly where casino-friendly legislation is concerned. Unions supported a 2008 state constitutional referendum that legalized slot machine parlors; its passage prompted the opening of four such establishments throughout Maryland. And after another 2012 statewide referendum—also strongly supported by unions—granted slot machine operators the right to expand into other types of gambling and to commence 24-hour operation, an expanded Caesars Entertainment Horseshoe site began construction in Baltimore.

All this has added up to a regional gambling boom, Karmel says, with the creation of more than 9,000 permanent jobs in addition to thousands of temporary construction ones. But allying with labor is nothing new for casino companies, who have successfully negotiated deals with labor unions in other locations around the country.

“It’s logical that the big casino companies like MGM and Caesars would bring unions with them when they expand into Maryland,” because these same companies are also heavily unionized in Las Vegas and elsewhere, says Karmel. “They are used to having unions … there is a long tradition of unionization in gambling.”

Indeed, in April 2013, Working In These Times reported that Caesars had struck a deal to unionize most of its estimated 1,700 permanent casino jobs in Baltimore, paralleling its existing agreements in other cities. And Boardman expects the yet-to-be-negotiated labor contracts at MGM’s Maryland location to mirror the “middle class wages and benefits” established by the company’s labor pacts with Unite Here locals at its branches in Las Vegas. He says many MGM entry-level jobs will likely pay about $17 an hour and come with fully paid health benefits.

The opportunity for organizing is so great, in fact, that it may be causing dissension among various unions when it comes to employee coverage. For example, the November 2013 issue of The Seafarers Log, the official publication of the Seafarers International Union (SIU), reported that a joint effort between the SIU-affiliated Seafarers Entertainment and Allied Trades Union (SEATU) and United Food & Commercial Workers Local 27 had succeeded in signing up about 2,500 new union members working at the expanded slot parlors. Sources indicate that some local unions regard SEATU as an intruder into their own jurisdictions. (Representatives from SIU and UFCW declined to comment for this story.)

For the most part, however, with labor peace agreements now in place for Maryland’s two large new casinos, leaders are counting the boom as a success. Fred Mason, President of the Maryland State and District of Columbia AFL-CIO, says the growth is a good example of the kind of gains that can be made when unions engage politicians and the public in job-creation initiatives.

“It’s creating jobs and pumping money into the economy generally,” he says. “And, of course, it is important that these are good-paying union jobs.”

This article was originally printed on Working In These Times on January 8, 2014.  Reprinted with permission.

About the Author: Bruce Vail is a Baltimore-based freelance writer with decades of experience covering labor and business stories for newspapers, magazines and new media. He was a reporter for Bloomberg BNA’s Daily Labor Report, covering collective bargaining issues in a wide range of industries, and a maritime industry reporter and editor for the Journal of Commerce, serving both in the newspaper’s New York City headquarters and in the Washington, D.C. bureau.

Cheer on Your Union Brothers and Sisters at the 2014 Golden Globes

Saturday, January 11th, 2014

Jackie TortoraThis Sunday at 8 p.m. ET on NBC, union talent will be on full display at the 2014 Golden Globes Awards, hosted by Tina Fey and Amy Poehler.

Union members involved in making, creating and starring in the movies and TV shows include SAG-AFTRA, the American Federation of Musicians of the United States and Canada (AFM), Theatrical Stage Employees (IATSE), Writers Guild of America, East (WGAE) and the Directors Guild of America (DGA).

Best of luck to everyone up for awards, and thanks for keeping us entertained year round.

This article was originally printed on AFL-CIO on January 10, 2014.  Reprinted with permission.

About the Author: Jackie Tortora is the blog editor and social media manager at the AFL-CIO.

Honeywell Workers Get Rare Good News for Christmas

Tuesday, December 31st, 2013

Mike ElkFor the past several Christmases, workers at Honeywell’s uranium plant in Metropolis, Ill., have had little to celebrate. Most of the workers at the plant have spent the best part of four years in a series of labor struggles with the company: first a tense 13-month lockout ending in 2011, then post-lockout disputes in which the union alleged that the company failed to abide by the new contract, and then, in July of 2012, a yearlong shuttering of the plant that led to temporary layoffs of almost the entire union workforce.

This holiday season, however, the workers are finally getting something to cheer about—all of their jobs back, two days before Christmas.

Earlier this month, Honeywell’s new plant manager Jim Pritchett recalled the final 11 of the nearly 200 laid-off union workers—including the union local president, Stephen Lech. The last of the workers restarted their jobs on Monday, December 23. The union, United Steelworkers (USW) Local 7-699, is hoping that the recalls may be a sign of improved relations with Honeywell.

That relationship grew even more strained this summer, after Honeywell reopened the renovated plant in May. While the company began bringing back laid-off union workers in an order determined by lists negotiated with the union, it stopped with 21 workers still left on the list. Local 7-699 alleges that this was an attempt to avoid rehiring Lech, who was next in line.

Out of solidarity with the laid-off workers, some union workers refused to work overtime, saying the plant was understaffed and that Honeywell was using overtime to avoid filling the needed positions. In turn, Pritchett (then the plant’s operating manager), sent a memo in July canceling summer vacations for all workers because not enough overtime shifts were being filled.

On October 25, Local 7-699 filed an unfair labor practice charge with the National Labor Relations Board, saying that Honeywell had “unlawfully, disparately, and discriminatorily failed and refused to reinstate from layoff, union president, Stephen Lech, because he engaged in protected, and concerted, and union activities.”

The NLRB was getting ready to hear the case when Honeywell settled. If the board had ruled in favor of the local and found that the refusal to reinstate was in retaliation for union action, Honeywell would have been legally liable for the back pay for the 21 workers who were not recalled during that six-month period. Lech estimates that the payment could have totaled more than a half a million dollars.

Some union activists say that the threat of legal action over the layoffs propelled Honeywell to finally readmit the last 21 workers to the plant. Honeywell did not return Working In These Times’ request for comment.

While Honeywell’s motives are unclear, what is clear is that this Christmas Eve, a lot of Honeywell workers in Metropolis, Ill., have reason to smile. The news of a victory gives union workers a much-needed morale boost as they head into what are expected to be contentious negotiations over their contract, which is set to expire this June.

“I’m excited about it,” says Lech of the rehirings. “We’ve fought hard against Honeywell for the last four years, and this is a huge victory for us.”

This article was originally printed on Working In These Times on December 23, 2013.  Reprinted with permission.

About the Author: Mike Elk is an In These Times Staff Writer and a regular contributor to the labor blog Working In These Times.

Strike in Colombia Highlights Free Trade Failure

Tuesday, August 27th, 2013

Dave JohnsonThere is a big strike in Colombia, and you probably don’t know about it. Farmers and others are protesting over a variety of grievances including the devastating effect of free-trade agreements, privatization and inequality-driven poverty. Corporate-owned American media is not covering it. These trade agreements make the really rich really richer while outsourcing jobs to places where people can’t object to the low pay and working conditions. This undercuts wages here. The end result is a race to the bottom.

The Strike

The BBC is reporting that 200,000 Colombian farmers are on strike in 11 of Colombia’s 32 provinces. They are blocking roads, cutting off the central province. The Economist reports that “Colombian miners, truckers, coffee growers, milk producers, public health-care workers, students and others” took to the streets on August 19.

Almost the only American outlet covering this strike is the Miami Herald. Last week the paper reported,

The agrarian strike, as it’s known, is broad-based and far-flung. Coffee, cacao, potato and rice farmers have joined ranks with cargo truckers, gold miners and others. Teachers and labor unions are also joining in. Their demands are equally ample, calling for reduced fuel and fertilizer prices, the cancellation of free trade agreements, increased subsidies and the end of a crackdown on informal mining operations, among others.

Reasons For Strike

Stone throwers clash with riot police as Colombian farmers demanding government subsidies and greater access to land block the road in La Calera, Cundinamarca department, on August 23. (EITAN ABRAMOVICH/AFP/Getty Images)

According to the Herald report free-trade agreements are part of the reason for the strike. “Javier Correa Velez, the head of a coffee-growers association called Dignidad Cafetera,” … “High fuel prices, expensive agrichemicals, government neglect of rural areas and free trade agreements — without adequate safeguards — have made it impossible for farmers to compete, he said.”

Miami Herald report the next day also says that the strikers are demanding an end to free-trade agreements.

Common Dreams has more, in Colombia Nationwide Strike Against ‘Free Trade,’ Privatization, Poverty. Common Dreams reports, (click through for links)

“[The strike is a condemnation] of the situation in which the Santos administration has put the country, as a consequence of its terrible, anti-union and dissatisfactory policies,” declared the Central Unitaria de Trabajadores (CUT), the country’s largest union, in a statement.

[. . .] Meanwhile, the Colombian government is handing out sweetheart deals to international mining companies while creating bans and roadblocks for Colombian miners. Likewise, the government is giving multinational food corporations access to land earmarked for poor Colombians. Healthcare workers are fighting a broad range of reforms aimed at gutting and privatizing Colombia’s healthcare system. Truckers are demanding an end to low wages and high gas prices.

Labor Murders In Colombia

Labor “strife” is not new to Colombia. In February, 2012 AFL-CIO President Richard Trumka sent a letter asking President Obama to delay the implementation of the Colombia Free Trade Agreement, because of continuing murders of labor activists.

The letter states that through January, one union member was killed by Colombian troops, a second was shot to death along with his wife, a third worker was “brutally murdered” and a fourth union member employed by the National Industry of Sodas (Coca-Cola) was “murdered by gunfire.”

Over 2,900 union members have been murdered in Colombia over the last 25 years…

The Common Dreams report drives this home,

Colombia is the deadliest country in the world for union activists, according to the AFL-CIO Solidarity Center, and 37 activists were murdered in Colombia in the 1st half of 2013 alone, leading news weekly Semana reports.

Effect Of US-Colombia Agreement

The US-Colombia Trade Agreement went into effect May, 2012. A year later The Nation carried the story, The Horrific Costs of the US-Colombia Trade Agreement describing the consequences on Colombia’s poor and farmers. The new agreement forces Colombian farmers “to compete against heavily subsidized US products” and an Oxfam report estimates “that the average income of 1.8 million grossly under-protected small farmers will fall by 16 percent.” “The study concludes that 400,000 farmers who now live below the minimum wage will see their incomes drop by up to 70 percent and will thus be forced out of their livelihoods.”

And the threats and murders continue. According to a May Public Citizen report on the effects of the recent Korea, Colombia and Panama trade agreements,

In the year after the launch of the Labor Action Plan, union members in Colombia received 471 death threats – exactly the same number as the average annual level of death threats in the two years before the Plan. At least 20 Colombian unionists were assassinated in 2012 according to the data relied upon under the Labor Action Plan, while the International Trade Union Confederation reported the assassination of 35 unionists. … In addition, violent mass displacements of Colombians increased 83 percent in 2012 relative to 2011, when the U.S. Congress passed the FTA, adding to the five million Colombians who have been displaced in the world’s largest internal displacement crisis.

The Colombian trade agreement is hurting Colombia’s small farmers and they are reacting. They are pitted against America’s giant, industrialized, government-subsidized farms and losing the battle. And in America these giant, corporate farms largely only enrich the 1%, providing low wages for the rest and forcing smaller American farmers out of business as well.

Korea Free-Trade Agreement Already Costs 40,000 American Jobs

Our free-trade agreement with Colombia is not the only recent agreement that is not going so well for 99% of the people involved. The Economic Policy Institute (EPI) reported in July that the US-Korea free trade agreement has already costs the US 40,000 jobs and increased our trade deficit by $5.8 billion. Already.

The tendency to distort trade model results was evident in the Obama administration’s insistence that increasing exports under KORUS would support 70,000 U.S. jobs. The administration neglected to consider jobs lost from the increasing imports and a growing bilateral trade deficit. In the year after KORUS took effect, the U.S. trade deficit with South Korea increased by $5.8 billion, costing more than 40,000 U.S. jobs. Most of the 40,000 jobs lost were good jobs in manufacturing.

NAFTA Wiped Out Small Mexican Farmers, Sending Them North

This is similar to the after-effect of the NAFTA agreement that allowed US-subsidized corn into Mexican markets, wiping out many small farmers and sending them north desperately looking for work. NAFTA forced at least 4,000 pig farms under, losing 120,000 jobs. (China being the beneficiary, now buying American pork-producer Smithfield.) It helped increase rural poverty from 35% to 55%. Tobacco and coffee farmers also went under.

A Wilson Center report says NAFTA “Subsidized Inequality,” displacing “many hundreds of thousands of small-scale corn producers.” A McClatchy report estimates the number of Mexican corn-farming jobs lost at 2 million, worsening illegal migration.

Then U.S. corn imports crested like a rain-swollen river, increasing from 7 percent of Mexican consumption to around 34 percent, mostly for animal feed and for industrial uses as cornstarch.

Meanwhile NAFTA didn’t turn out so well for American workers, either. Estimates are that NAFTA has cost 700,000 American jobs, and a quick look at 1989?s Roger & Me shows what it did to cities and regions. Many of Detroit’s auto jobs have moved to Mexico, for example.

China Trade

The Alliance for American Manufacturing has a state-by-state map of jobs lost to China (don’t forget the more than 50,000 factories), with the introduction, “The growth of the U.S. trade deficit with China since that country entered the World Trade Organization in 2001 has had a devastating effect on U.S. workers and the domestic economy. Between 2001 and 2011, 2.7 million U.S. jobs were lost or displaced.”

Our trade deficit with China drained $26.9 billion from our economy just in the month of June. And that was actually down from 27.9 billion the month before.

No Jobs From Trade Deals

In No Jobs from Trade Pacts EPI’s Robert Scott explains that the appeal of these job-killing trade deals is the job killing nature of the deals,

FTAs and other trade agreements make it enormously profitable to outsource production to countries such as South Korea and China that use currency manipulation, dumping, and other unfair trade practices to undercut production and wages in the United States. U.S. MNCs, including Apple, Boeing, Dell, Ford, GE, GM, and Intel have also profited enormously from outsourcing to Mexico, China, and other low-wage trade partners under the protection of FTAs and the WTO. The end result is a race to the bottom in wages and working conditions for most members of these agreements.

These trade agreements make the really rich really richer. They outsource jobs to places where people can’t object to the low pay and working conditions. This undercuts wages here. The end result is a race to the bottom, while the 1% get richer and richer.

Promises, Promises

Free-trade proponents always promise jobs and prosperity, then later we get the bill. The promises sound great but the record is that only a wealthy few benefit at the expense of the rest of us.

The Korean and NAFTA free-trade deals and China’s entry into the WTO led to terrible job losses (and millions of Mexicans pressured to migrate north), our trade deficit accelerated, factories were closed and entire regions of our country were devastated. Just look at Detroit, Flint, and similar cities.

But the promises … In 2011 the Koch brothers’ Cato Institute promised, in Trade Agreement Would Promote U.S. Exports and Colombian Civil Society,

[T]he U.S.-Colombia trade agreement would eliminate barriers to billions of dollars of U.S. exports. Colombia is home to 45 million consumers and is one of the largest economies in Latin America, and a major market for U.S. exports in the Western Hemisphere. …

Anytime trade barriers can be lowered anywhere, at home or abroad, Americans benefit from greater competition and specialization. …

The Colombia trade agreement would extend investor protections and guarantees of equal treatment to service providers in a broad range of sectors. …

Gains in market access would be especially strong for the U.S. financial sector. …

Cato offered promises for Colombia as well,

The FTA with the United States would boost the Colombian economy and complement other important market reforms carried out in that country in the last decade. …

After a decade of substantial improvements in the areas of security and the economy, Colombia stands to benefit from a free-trade agreement with its most important partner. By approving this FTA, the United States would contribute significantly to Colombia’s economic development at a crucial point in the country’s history.

And so on. This is typical of the promises we hear every time a new free-trade deal is brought before the Congress for approval.

Last year the Heritage Foundation looked at our trade relationship with China (which has cost millions of jobs and drained trillions from the economy). Heritage explained why the loss of jobs and massive trade deficit are good for us, because this means prices are low, and the owners of American (and Duth and Korean) corporations make out like bandits, we go further into debt with them, and then they buy our companies and land,

Every day we buy things made in China, though they may be made there by American or Dutch or Korean corporations. China buys a lot of our government’s debt and lately it has been buying small pieces of American companies and land.

Heritage goes on to say that if our government did something about it, that would make us “less free” and “would pick winners and losers” and that “comparative advantage” means China should do this work. Because their “comparitive advantage” is that no democracy, no unions, no environmental protections means they can make things for less so giant corporations have higher profits.

This, by the way, is a different way of saying what I wrote above, “These trade agreements make the really rich really richer. They outsource jobs to places where people can’t object to the low pay and working conditions. This undercuts wages here. The end result is a race to the bottom, while the 1% get richer and richer.”

Beware

Yes, free-trade agreements can increase exports. Corn to Mexico, for example. Raw materials to China. But if they increase imports even more, it is still a net loss for jobs and the economy. (No, by “imports” I do not mean the mass migration north of desperate Mexican agricultural workers wiped out by giant, government-subsidized US agricultural corporations.)

huge new trade deal is coming up soon. This is the Trans-Pacific Partnership (TPP), called by some the “mother of all free-trade deals” and by others the “Corporate Deathstar.” It is a job-loss runaway train that is coming straght at us. The corporate lobbyists are asking Congress to give up their Constitutional duty to scrutinize and amend this agreement by passing “Fast Track” Trade Promotion Authority. Call your Senators and Representative today and tell them you oppose “Fast Track” — and tell everyone you know to do the same.

This article originally appeared OurFuture.org on August 26, 2013.   It can also be found on AFL-CIO NOW blog.  Reprinted with permission.

About the Author: Dave Johnson is Dave Johnson  is a Fellow at Campaign for America’s Future, writing about American manufacturing, trade and economic/industrial policy.

T-Mobile US Workers Unite for Respect

Wednesday, August 21st, 2013

Image: Mike HallWith a new website—TMobileWorkersUnited.org—workers at T-Mobile US are connecting with each other to build strength in their drive for workplace justice and respect.

Working with the Communications Workers of America (CWA), T-Mobile Workers United (TU) is an alliance of hundreds of call center representatives, retail associates and technicians who are standing up to discuss the issues and challenges they face at the new T-Mobile US, a merger of T-Mobile USA and MetroPCS.

For the past several years, T-Mobile workers say they have faced an extensive anti-union campaign by the company that last year closed seven call centers in the United States and shipped more than 3,300 jobs overseas.

Before the merger, MetroPCS shared T-Mobile’s U.S. job-killing record. The company “outsourced all of its customer contact center services to maintain low operating expenses” through a partnership with Telvista, a call center outsourcer. Good American jobs are now going to Mexico, Antigua, Panama and the Philippines, according to MetroPCS’s 10-K filing.

Ronald Ellis, a T-Mobile US call center worker in Nashville, Tenn., writes on the new website:

With the recent acquisition of MetroPCS (9 million no-contract customers, and no customer service based in the USA), the winds of change are blowing. T-Mobile USA stopped employees’ raises and stopped the phone incentive for employees. We feel if we don’t unite soon, more call centers may soon be on the chopping blocks for downsizing.

The workers say they want this new company to succeed, and they believe that justice and respect in the workplace are essential for that success.

In 2011, CWA, ver.di, the German union that represents workers at T-Mobile’s parent company Deutsche Telekom, and a coalition of community and labor groups around the world, partnered on an international campaign to win workers a voice and respect at T-Mobile. Read more about the global campaign here and here.

This article originally appeared on AFL-CIO NOW blog on August 19th, 2013.  Reposted with permission. 

About the Author:  Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journaland managing editor of the Seafarers Log.  He came to the AFL- CIO in 1989 and has written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety

Oil Drilling Boom Boosts Boilermakers, Other Shipyard Unions

Thursday, August 15th, 2013

Bruce Vail

Unionized workers at Aker Philadelphia Shipyard breathed a collective sigh of relief late last week with news that an agreement to build as many as eight new oil tankers has been finalized. The investment, estimated to be worth $1 billion, should keep the yard humming for the next four years.

The contract to build the new ships means that some 1,000 workers will continue to be regularly employed beyond next year, when the yard will complete most work on two crude oil tankers now under construction for a shipping subsidiary of ExxonMobil Corp. Recent years have seen some lean times at the shipyard, with employment falling to 400 as recently as 2011 when new orders for vessels were hard to come by, says Aker spokesperson Kelly Whittaker.

“It’s feast or famine in this business, so we’re really happy they [Aker] got the contract,” says Phillipp J. Evans, a regional representative for the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers & Helpers. The Boilermakers union represent about two-thirds of the workers at the Aker yard, Evans estimates, with the remainder represented by local units of 10 other unions organized into the Philadelphia Metal Trades Council.

The Aker Philadelphia contract is welcome news also because it confirms a national rebound in commercial tanker construction, adds Ron Ault, President of the AFL-CIO’s Metal Trades Department (MTD), which represents unionized shipbuilders around the country. In May, shipyard employees in San Diego got a similar boost when a company called American Petroleum Tankers signed a contract for new vessels at the General Dynamics NASSCO yard there. Some 800 workers are expected to be hired to complete that contract, according to a NASSCO statement.

Rumors are rife that there are further tanker orders in the offing, most of which are related to an unusual rise in the U.S. production of crude oil, Ault says. Increased shale oil drilling—largely in the Bakken region of North Dakota and the Eagle Ford geologic formation in Texas—are flooding the domestic market with new crude, and the oil industry is scrambling to line up tankers to move the crude to refineries and then ship the refined petroleum  products to consumers.

Largely absent from most discussions of the tanker resurgence is the environmental impact of the drilling increase. Most of the new oil is thought to displace imports from the Middle East or Africa, so there appears to be little net impact on total oil consumption or the resultant air pollution. With a decision due soon from federal government authorities on whether the Keystone XL pipeline will go forward, it is a tricky moment in relations between environmentalist and organized labor, and neither side seems anxious to worsen the situation by introducing new, potentially divisive issues. And for the Boilermakers and other unions that build tankers and equipment for the energy industry, environmental concerns rarely register.

Shipping industry experts are startled by the tanker boom. Tim Colton, a retired shipbuilding executive who writes the popular blog Maritime Memos, commented Aug. 9:

It’s amazing to think that it’s not very long ago that it was safe to say that all the… (U.S.-flag commercial tanker construction) was done, which it was, and here we are building ships like crazy, with a bunch more still to be ordered.  This upheaval in the domestic product trades is the most exciting thing that’s happened in the industry in decades, especially as there’s been almost no growth in these trades since the 1970s.

The excitement was accentuated in June when Reuters reported that ExxonMobil had chartered one U.S.-flag tanker at the astonishingly high rate of $100,000 per day. Controlled by the Koch Shipping and Supply Company (owned by the notorious Koch brothers), the vessel American Phoenix was reported to be earning 50 percent more than similar vessels at the same time last year. With charter rates at these levels, operating U.S.-flag tankers is estimated to be a very profitable enterprise that will spur construction of additional ships.

The lively tanker market also has an effect on the barge industry, which along with pipelines and railroads is an important player in the oil transport sector. For example, barge builder Jeffboat reported in late July that it was adding about 100 new jobs to help fill orders for tank barges. Coincidentally, Teamsters Local 89 ratified a new contract covering about 800 of its members at the Jeffersonville, Ind. yard at about the same time.

Back in Philadephia, Boilermakers’ Evans adds that the new tanker contract there should provide some respite also from political attacks on Aker Shipyard, and also on the Jones Act, the law that requires ships carrying cargo between U.S. ports to be built here and crewed with U.S.civilian seafarers.

Pennsylvania lawmakers have been subjected to intense criticism since 1998 for a series of efforts to financially aid the shipyard’s conversion from a military facility to a commercial yard, and the unions have come in for their share of attacks, he says. Such attacks have been most intense when the yard has struggled, while the benefits of such aid are most apparent when the yard’s order book is full.

Attacks on the Jones Act itself (particularly from big business interests and their Republican Party allies) are almost constant, adds MTD’s Ault. Complaints typically focus on the high cost of building ships in U.S. yards, compared to dramatically lower prices for similar vessels from countries like South Korea or China. But American labor has always argued that the ships are worth the price because they support U.S. jobs and are crucial to the country’s manufacturing base. Shortages of U.S.-flag tankers invariably prompt new calls for doing away with the Jones Act, Ault says, but strong labor union support for the law has been successful in blocking repeal efforts in the past. Today’s unusual conditions in the U.S. domestic tanker market can be expected to draw fresh fire against the Jones Act, he predicts, and unions will have to stand ready to defend the law again.

This article originally appeared on Working in These Times on August 14, 2013.  Reprinted with permission.

About the Author: Bruce Vail is a Baltimore-based freelance writer with decades of experience covering labor and business stories for newspapers, magazines and new media. He was a reporter for Bloomberg BNA’s Daily Labor Report, covering collective bargaining issues in a wide range of industries, and a maritime industry reporter and editor for the Journal of Commerce, serving both in the newspaper’s New York City headquarters and in the Washington, D.C. bureau.

8 Ways That ALEC Is Targeting Working Families

Wednesday, August 7th, 2013

Kenneth-Quinnell_smallInformation about the American Legislative Exchange Council (ALEC) working in secret to push state-level policy to more extreme levels is coming to light more and more and America’s working families are starting to stand up to the group’s corporate-driven agenda. While ALEC’s agenda is all over the policy map, the organization has a particular focus on pushing new laws that attack working families and undercut the rights of workers, both in the workplace and in retirement.  Here are eight of the most dangerous and most widespread ways that ALEC is targeting workers and their right to a voice on the job.

8. Voter ID Act: Laws directly based on or similar to ALEC’s Voter ID Act have been introduced in recent years in nearly every state, with more than a dozen states passing or strengthening such laws in the past three years. These laws disproportionately affect working families, senior citizens, people of color and residents of rural areas and help elect legislators who vote against the rights and needs of workers.

7. Paycheck Protection Bills: ALEC has at least four different versions of this legislation, each one more extreme than the last, that were introduced 20 times in various states in 2013. These bills range from requiring that each employee sign an annual form authorizing that their union dues be allowed to be used for political purposes to preventing payroll deductions from being used for union dues. These bills provide no additional rights to workers and do nothing more than weaken the ability of workers to collectively bargain by depriving unions of the funds they need to fight on behalf of their members.

6. Direct Union Assaults: Through model legislation such as the Election Accountability for Municipal Employee Union Representatives Act and the De-certification Elections Act, introduced in Idaho and Arizona, respectively, ALEC is seeking to make public employees vote over and over again to retain their union status, giving ALEC and other groups the opportunity to flood workers with anti-union propaganda.

5. Public Employees’ Portable Retirement Option Act: Through this and similar bills, 10 states have attempted to weaken or eliminate defined-benefit pension plans and replace them with defined-contribution plans, which make retirees depend on the market for how much money they have for retirement and health care.

4. Council on Efficient Government Act: As Orwellian a name as any in the ALEC arsenal, this legislation does nothing but use government money to create a commission to figure out ways to privatize government services. In other words, yet another example of ALEC attempting to get taxpayer money into the hands of private corporations without any accountability or taxpayer recourse.

3. “Right to Work” Act: This incredibly misleadingly titled legislation gives no one any new rights and does nothing but prevent employees from paying for the benefits that unions earn on their behalf. So-called “right to work” for less states end up paying their workers a lot less than states that don’t have such laws. In 2013, 15 states introduced this legislation.

2. Parent Trigger Act: These laws give parents the option, once a majority of parents sign a petition, to change a public school into a charter school, give students vouchers or close the school. Seven states have passed parent trigger laws similar to the ALEC bill. Parent Trigger laws force parents to make a bad choice—either stick with a poorly performing school, or take drastic actions that are likely to make things worse, do little to help students and are a boon for corporate groups that run private schools. Meanwhile one of the best tools for helping working families reach the middle class—public education—gets less and less funding.

1. Wage Protections: In 14 states, ALEC model legislation attacking wage protections were introduced. The bills sought to weaken or eliminate laws that require prevailing wages, living wages or minimum wages. Big corporations heavily support these efforts, which would only serve to lower wages for workers.

On Thursday, Aug. 8, working families and other opponents of the ALEC agenda will be rallying at the conservative group’s convention in Chicago. Those who are in the area can RSVP online.

This article originally appeared on AFL-CIO NOW blog on August 7, 2013.  Reprinted with permission. 

About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist whose writings have appeared on AFL-CIO, Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere.

Pizza-Making Strikers Win Small Slice of Justice in Milwaukee

Monday, August 5th, 2013

Roger BybeeThe 14-month-long strike at Palermo’s Pizza in Milwaukee produced a small slice of justice this week for the Mexican immigrant workers who have been fighting for higher wages, safer conditions and a union voice at the frozen-pizza maker.

Last Tuesday, Palermo’s finally agreed to comply with a finding by the National Labor Relations Board and re-hire eight workers with back pay, which will cost the pizza chain tens of thousands of dollars. The eight had been illegally fired for trying to unionize, the NLRB ruled.

Palermo’s has also agreed to post a notice announcing that the firm will no longer violate federal labor law. “This agreement confirms that Palermo’s used threats, intimidation, surveillance, discrimination, and retaliation to deny the freedom to choose a union voice,” says Raul de la Torre, an organizing committee member of the Palermo’s Workers Union. Fully 75 percent of the workers signed cards seeking union recognition prior to the strike, but Palermo’s management responded only with threats and other illegal tactics.

But Palermo’s decision to comply with the NLRB ruling does not reflect a softening of the intransigence that has driven about 125 workers, almost all immigrants from Mexico, out on strike for over a year. Palermo’s has refused for months to even engage in bargaining, said spokesperson Brian Rothgery of the United Steelworkers (USW) union, which has been assisting the Palermo’s strikers since they walked out on June 1, 2012.

Low pay, hazardous working conditions and arbitrary management decisions drove workers to form a union with the help of the immigrants-rights group Voces de la Frontera, which has been vocal and visible force in Wisconsin for the rights of immigrant workers.

Voces, the Palermo’s Workers Union and the USW are preparing to intensify their boycott of Palermo’s frozen pizzas at stores and institutions across the nation, said Rothgery. This escalation of the boycott will mean a focus on getting Palermo’s products removed from universities and on the Costco chain, which accounts for half of Palermo’s sales.

USW District 2 Director Mike Bolton called the settlement for the eight workers a positive development, but expressed exasperation with U.S. labor laws that allow a firm like Palermo’s to thwart the democratic choice of workers to form a union.

“It took much too long to get even this small bit of justice for these workers,” Bolton tells Working In These Times. “And unfortunately, they will be going back to jobs where union busters have created such an atmosphere of fear and intimidation that a democratic election is not possible.”

“The American system of labor laws has failed for most of the Palermo’s workers,” says Rothgery. “But that doesn’t mean we’re going to stop. The boycott is continuing, and we’ll keep fighting until there is justice for all the workers at Palermo’s.”

The workers and their allies will need to puncture the stone wall that has been Palermo’s response to the onslaught of community protests and legal challenges. Palermo’s refused to accept a letter from clergy and other community leaders following their 18-mile pilgrimage from Palermo’s plant to the palatial suburban home of Palermo’s co-owner Giacomo Falluci on June 1, 2013, the one-year anniversary of the strike.

Meanwhile, Palermo’s still faces various federal charges of both tolerating safety hazards and breaking labor-relations laws. Palermo’s is contesting seven “serious” charges filed May 7 by the Occupational Safety and Health Administration that its handling of nearly 30,000 pounds of anhydrous ammonia—used in freezing food—was unsafe and posed a severe safety hazard. Palermo’s faces $38,500 in fines from OSHA.

The penalties reflect the threat posed by a potential accident. The Environmental Protection Agency estimates that a one-minute accidental release of 1,000 pounds of ammonia would spread toxic fumes 1.2 miles in an urban area.  A release of the full 29,500 pounds could travelsix miles. The Milwaukee Brewers’ major-league baseball stadium, with a seating capacity of 42,200, is just 1.3 miles west of the Palermo’s plant.

OSHA also requested that the frozen-pizza company turn over uncensored records of worker injuries and other safety problems, after Palermo’s submitted information with key information redacted.

Unfair labor charges

Until finally conceding on the one NLRB complaint, Palermo’s had refused to comply with the NLRB order issued last November. Palermo’s management and its advisors—which include the Chicago-based anti-union Jackson Lewis law firm and the PR firm of prominent local Democrat Evan Zeppos–seemingly want to project a message that the firm is impervious to any form of pressure, and thereby demoralize the workers and their supporters, say supporters of the strikers.

“They want to flaunt their impunity, “ explained Christine Neumann-Ortiz, director of Voces de la Frontera, the influential immigrants-rights group which has reinvigorated Milwaukee’s long tradition of May Day marches—dating back to 1886–by assembling tens of thousands of immigrant workers and supporters. Zeppos has attacked Neumann-Ortiz in harsh terms for supposedly discouraging business development: “I’ve talked to businesses who say, ‘Why should I move to the valley when that’s happening?’ She has hurt the city, she has hurt those workers, and she has hurt herself. She’s become toxic property.”

Palermo’s has managed to replace the striking workers with “scab” replacement workers. Many of these replacement workers were hired through the BG temporary agency, which faces its own set of charges issued by the NLRB—including a contingent of refugees from Myanmar (until recently, a nation wracked by dire poverty ruled by an extraordinarily brutal military dictatorship). A 21 year-old refugee suffered the loss of three fingers in an accident at the plant.

Big subsidies for low-wage jobs

Palermo’s stance has been reinforced by the overtly pro-corporate and anti-unionadministration of Gov. Scott Walker, especially the scandal-wracked Wisconsin Economic Development Agency, which has been willing to overlook the company’s failure to provide family-sustaining wages as promised in exchange for state grants. Wages at Palermo’s have fallen far short of the $12 an hour target set a full decade back in 2003 by the Menominee Valley Partners, a joint public-private initiative, when a plan was laid out for the area, which had been vacated by many large employers. One Palermo’s worker reported that she made just $9.30 an hour after 10 years at the plant.

Total taxpayer subsidies to Palermo’s—from city, state, and federal sources—have totaled $48 million, according to an updated version of an AFL-CIO report called “Too Much Pork in the Pepperoni.”

Allies and foes

Despite Palermo’s failure to meet its obligations to taxpayers, the company has found allies in the Milwaukee area’s top Democratic leaders. County Executive Chris Abele, who both gained office with labor support, openly aligned himself with Palermo’s in an op-ed shortly after the dispute started. For his part, Mayor Tom Barrett issued a deceptively neutral-sounding call for a “fair and timely” union representation election late last November, in a statement describing Palermo’s as “a valued corporate citizen.” But holding elections under the prevailing conditions would mean that the Palermo’s strikers would be shut out of the election while replacement workers would constitute the voters, noted Neumann Ortiz.  “They [Palermo’s and Barrett] only want an election where the voters would be hand-picked,” she pointed out.

But has been extensive support for the workers around the state and in the local community—as exhibited by the clergy-led 18-mile walk to protest Palermo’s practices. At UW-Madison, students held a sit-in ON April 29 at the office of Chancellor David Ward and won a halt to the university’s licensing deal with Palermo’s, under which the UW receiveD about $200,000 for promoting Palermo’s pizzas with a “Bucky Badger” logo.

Some Wisconsin Democrats, like state Rep. Jon Richards, have been actively demanding records on Palermo’s failure to provide the quality jobs needed to comply with the terms of its subsidies. Several County Board and City Council members have also been outspoken in their support of the strikers.

Meanwhile, labor activists nationwide are pressuring chains like San Diego-based Costco to stop carrying Palermo’s pizzas until workers’ rights are honored. While Costco has marketed itself as a humane alternative to Wal-Mart’s infamous low-wage and unashamedly brutal disregard of worker suffering, as with victims of factory disasters in Bangladesh for whom Wal-Mart has denied any responsibility, Costco has thus far refused to budge on selling Palermo’s pizzas  produced under harsh conditions closer to home.

With Palermo’s concession n the rehiring of the eight workers and acknowledgement of labor-law violations, the Palermo’s strikers and their allies see a small step forward. The boycott campaign gains ammunition at universities with strong policies on labor rights.

But until a breakthrough occurs to cut significantly into Palermo’s sales, Palermo’s seems intent on maintaining a hard line against the strikers. Image-conscious Costco, with 449 warehouse-style stores across the U.S., may prove to be the crucial target if Palermo’s workers are ever to win justice.

This article originally posted on Working In These Times on August 5th, 2013.  Reprinted with permission.  

About the Author:Roger Bybee is a Milwaukee-based freelance writer and University of Illinois visiting professor in Labor Education. Roger’s work has appeared in numerous national publications, including Zmagazine, Dollars & Sense, The Progressive, Progressive Populist, Huffington Post, The American Prospect, Yes! and Foreign Policy in Focus.

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