Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘agreement’

New Agreement Means $2.2M in Back Pay, New Work for Florida IATSE Members

Friday, January 4th, 2013

Stagehands in West Palm Beach, Fla., will secure regular work and share some $2.2 million in back pay after Theatrical Stage Employees (IATSE) Local 500 and the Raymond F. Kravis Center for the Performing Artsreached agreement on a five-year contract that settles charges in a dispute that began in 2001.

The agreement was reached in late December and approved today by the National Labor Relations Board (NLRB).  

The new agreement followed a strike last month that forced the cancellation of four performances of the touring musical “Jersey Boys.” Actors’ Equity (AEA) and other unions representing workers in the touring companyrespected IATSE picket lines. When the Palm Beach Post asked Local 500 business manager Terry McKenzie how the agreement was reached, the paper wrote:

McKenzie deadpanned, ‘Well, a strike had something to do with it.’

In 2000, the theater fired several IATSE members and withdrew recognition of the union after declaring an impasse had been reached in negotiations. In 2001, attorneys for the regional director of the NLRB concluded that Kravis had committed “massive and continuous violations” of federal labor law when it unilaterally withdrew recognition of the union, refused to negotiate, discharged union-represented department heads and other major violations.

Kravis appealed the decision to the Bush–era full NLRB, which took five years before the board ruled that the center violated the law when it ejected the union and fired union workers. But the center appealed to a federal appeals court, which upheld the NLRB ruling.

In 2009, the Kravis Center, under court order, returned to the bargaining table, but in 2011 and 2012 committed further labor law violations, according to charges filed by IATSE.  

The new agreement withdraws all pending charges and the NLRB says Kravis also recognizes the union as the bargaining agent for stagehands working on Kravis productions and agrees to obtain workers through the Local 500 hiring hall. The contract also reinstates three department heads whose positions had been eliminated. Said McKenzie in a statement:

The union looks forward to building a positive relationship that contributes to the success of the Kravis Center and gainful employment for the people we represent.

This post was originally posted on AFL-CIO on January 4, 2013. Reprinted with Permission.

About the Author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journal and 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. When his collar was still blue, he carried union cards from the Oil, Chemical and Atomic Workers, American Flint Glass Workers and Teamsters for jobs in a chemical plant, a mining equipment manufacturing plant and a warehouse.

Just When You Thought the Hostess Story Couldn't Get Worse...

Thursday, December 13th, 2012

Kenneth Quinnell

Money that was intended for employee pensions was used by Hostess Brands management to cover operating expenses and workers were never compensated for the lost payment, Yahoo News reports. An undetermined amount of money that Bakery, Confectionery, Tobacco Workers and Grain Miller (BCTGM) members were supposed to receive as part of their contract with the company was used to keep the company running after mismanagement led to significant losses and eventual bankruptcy. 

This was during the same time period that Hostess began paying out massive bonuses to executives. BCTGM learned that the then-Hostess CEO was to be awarded a 300% raise, and at least nine other top executives were to receive raises ranging between 35% and 80%.

The process of taking the pension money was quite simple for Hostess:

For example, John Jordan, the local union financial officer for [BCTGM] Local 334 in Biddeford, Maine, said workers at a Hostess factory in Biddeford agreed to plow 28 cents of their 30-cents-an-hour wage increase in November 2010 into the pension plan.

Hostess was supposed to take the additional 28 cents an hour and contribute it to the workers’ pension plan.

Employees never saw that 28 cents. In July 2011, Hostess stopped making pension contributions and used the money to run the business. Employees never received the pension funds and the compensation Hostess promised the workers was not made up in wages, either.

In all likelihood, the tactic doesn’t violate federal law because the money didn’t get paid to employees first, but went directly to the pension fund. Lawyers call the situation “betrayal without remedy” and it’s unlikely the money can be recovered.

Hostess CEO Gregory Rayburn’s response ranged from understatement to “it’s not my fault.”

Gregory Rayburn, Hostess’s chief executive officer, said in an interview it is “terrible” that employee wages earmarked for the pension were steered elsewhere by the company.

“I think it’s like a lot of things in this case,” he added. “It’s not a good situation to have.”

Mr. Rayburn became chief executive in March and learned about the issue shortly before the company shut down, he said. “Whatever the circumstances were, whatever those decisions were, I wasn’t there,” he said.

Rayburn’s predecessor at Hostess, Brian Driscoll, refused to comment.

The end of pension contributions by the company was a key reason for the BCTGM strike:

Halted pension contributions were a major factor in the bakers union’s refusal to make a deal with the company. After a U.S. bankruptcy judge granted Hostess’s request to impose a new contract, the union’s employees went on strike. Hostess then moved to liquidate the company.

“The company’s cessation of making pension contributions was a critical component of the bakers’ decision” to walk off the job, said Jeffrey Freund of Bredhoff & Kaiser PLLC, a lawyer for the union.

“If they had continued to fund the pension, I think we’d still be working there today,” said Craig Davis, a 44-year-old forklift operator who loaded trucks with Twinkies, cupcakes and sweet rolls at an Emporia, Kan., bakery, for nearly 22 years.

The amount of employee compensation lost by the company is not known, but the numbers are staggering:

In five months before this past January’s bankruptcy filing, the company missed payments to the main baker pension fund totaling $22.1 million, Mr. Freund said.

After that, forgone pension payments added up at a rate of $3 million to $4 million a month until Hostess formally rejected its contracts with the union. The figures include company contributions and employee wages that were earmarked for the pension, according to Mr. Freund.

This post was originally posted on AFL-CIO on December 11, 2012. Reprinted with Permission.

About the Author: Kenneth Quinnell is a senior writer for AFL-CIO, and a former precinct committeeman in the Leon County Democratic Party. He is a former vice chair of the Florida Democratic Party’s Legislative Liaison Committee, and during the 2010 election, through the primary, Kenneth Quinnell worked for the Kendrick Meek campaign. He has written for Think Progress, AFSCME and for OurFuture.org on Social Security.

3,000 Workers at 14 Industrial Laundry Sites Get Wage Gains, Keep Free Health Insurance

Friday, December 7th, 2012

Industrial laundry workers, who wash linen for New York’s hotels, hospitals and restaurants, voted overwhelmingly to ratify a new master contract between 14 laundries in the New York Metro area and the Laundry, Distribution and Food Service Joint Board, Workers United/SEIU.

The contract includes significant wage gains for laundry workers, a majority of which are African-American women and Latina immigrants.  New York Metro area laundry workers will also continue to have free employer paid individual medical, dental and vision insurance and a pension. Laundry workers will be part of one multi-employer contract, which sets the standards for a majority of laundries in the New York Metro area.

“This contract makes real improvements for laundry workers and their families and continues to raise standards for the industry,” Wilfredo Larancuent, Regional Manager of the Laundry, Distribution and Food Service Joint Board, Workers United/SEIU, told the bargaining committee comprised of drivers and production workers from area laundries, “You can feel proud of what we have accomplished.”

Elected worker representatives from the laundries bargained the contract with employer representatives for over a month.  A strike vote was held at the laundries, but the contract was settled prior to the strike deadline. Workers and the employers were able to come to an agreement and both were satisfied with the contract.

The Laundry, Distribution and Food Service Joint Board, Workers United/SEIU represents nearly 70% of all industrial laundry workers in the New York Metro area.  In August, laundry workers at JVK Operations in Long Island voted to join the Laundry, Distribution and Food Service Joint Board, Workers United/SEIU and the Joint Board continues to organize the remaining laundries in the New York Metro area in order to bring all laundry workers up to the standards of their membership.

This article was originally published on SEIU on December 7, 2012. Reprinted with Permission.

About the Author: Service Employees International Union is an organization of 2.1 million members united by the belief in the dignity and worth of workers and the services they provide and dedicated to improving the lives of workers and their families and creating a more just and humane society.

Striking SoCal Port Clerical Workers Win Outsourcing Controls in Tentative Pact

Thursday, December 6th, 2012

Some 450 office clerical workers—members of the International Longshore and Warehouse Union (ILWU) Local 63—are back on the job this morning in the ports of Los Angeles and Long Beach, Calif., after the ILWU and port employers reached a tentative agreement Tuesday night that will prevent the outsourcing of jobs.

ILWU International President Robert McEllrath said the unity and solidarity of the workers, members, their families and thousands of community supporters played a major role in the workers’ win. When the workers struck Nov. 27, ILWU dockworkers and other port workers refused to cross the picket lines.

“This victory was accomplished because of support from the entire ILWU family of 10,000 members in the harbor community.”

The key elements in the tentative agreement are new protections that will help prevent jobs from being outsourced to Texas, Taiwan and beyond. Union spokesman Craig Merrilees said:

“Really, it was getting control on the outsourcing…ensuring that the jobs are here today, tomorrow and for the future.”

The port workers had been without contract for more than two years and employers were threatening to outsource jobs from the nation’s busiest port complex—some 40 percent of all containerized cargo is handled in the Los Angeles and Long Beach ports.

Details of the agreement that still must be ratified have not been released, but news reports say it is a six-year deal that is retroactive to June 30, 2010.

The workers don’t have ordinary clerk and secretarial jobs. The Los Angeles Times describes them as “logistics experts who process a massive flow of information on the content of ships’ cargo containers and their destinations….They are responsible for booking cargo, filing customs documentation and monitoring and tracking cargo movements.”

This post was originally posted on AFL-CIO NOW on November 6, 2012. Reprinted with Permission.

About the Author: Mike Hall is a a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journal and 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. When his collar was “still blue,” he carried union cards from the Oil, Chemical and Atomic Workers, American Flint Glass Workers and Teamsters for jobs in a chemical plant, a mining equipment manufacturing plant and a warehouse.

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