Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘GOP’

Union to Southwest: $1,000 worker bonuses don’t make up for years of stagnant pay

Thursday, January 4th, 2018

Southwest Airlines this week announced that it would be awarding its employees with a $1,000 bonus following the passage of the GOP tax bill, which the company’s board of directors said would “result in meaningful corporate income tax reform.”

Union leaders say it hardly makes up for years of unfair treatment.

“We applaud Congress and the President for taking this action to pass legislation, which will result in meaningful corporate income tax reform for the transportation sector in general, and for Southwest Airlines, in particular,” Southwest chairman and Chief Executive Officer Gary Kelly said in a statement on Tuesday. “We are excited about the savings and additional capital, which we intend to put to work in several forms — to reward our hard-working Employees, to reinvest in our business, to reward our Shareholders, and to keep our costs and fares low for our Customers.”

Kelly added that the company was prepared to donate “an incremental $5 million” to charity and increase business investments in Boeing.

Union bosses representing those employees, however, aren’t completely satisfied, saying that many of those same workers have gone without a raise for five years.

“The Aircraft Mechanics Fraternal Association (AMFA) represents more than 2,700 Aircraft Maintenance Technicians (AMT) at Southwest Airlines (SWA). As of today, the Union has been in negotiations with SWA for more than five years (1,966 days), since the contract amendable date of August 16, 2012,” AMFA National Director Bret Oestreich told ThinkProgress in an email. “Although many members are appreciative of the Company’s recent $1000 bonus in response to the newly passed tax bill, this is a small token of appreciation for what the AMTs have endured over the last 1,966 days.”

While Southwest ratified a collective-bargaining agreement with AMFA-represented Facilities Maintenance Technicians (FMTs) in November last year, it still has yet to reach an agreement with its AMTs. Such an agreement would likely award aircraft technicians with protections and benefits similar to the ones awarded to the facility technicians, which currently include a “complete set of work rules, wage scale, ratification bonus, and job protections,” according to a Southwest news release.

“While the Company experienced record profits during this time, our members have not received increases in pay, enhancements to benefits or, most importantly, job security as they threaten to outsource even more work to 3rd party vendors,” Oestreich explained.

He added, however, that he was “optimistic” Southwest and AMFA would reach a “well-deserved, fair and equitable agreement” by the end of the next union negotiation session, which is set for January 18-19 in Washington, D.C.

Southwest spokespersons did not immediately respond to a request for comment.

Southwest is only the latest company to announce worker bonuses following passage of the Republican tax bill. In December, a handful of businesses — including Fifth Third Bancorp and AT&T — stated that they would be doling out one-time bonuses to their employees as a result of the bill, which carves out massive benefits for major U.S. companies by lowering the corporate tax rate to 21 percent. Many companies also announced that they would be “reinvesting” in their businesses, although, as ThinkProgress previously reported, a large portion of that money will likely be used for share buybacks.

Union leaders at the time were equally unimpressed by those announcements.

“Republican leaders have promised that households would receive, on average, a yearly $4,000 wage increase. They also claimed that the corporate tax plan would produce new jobs in the U.S. as companies return work from offshore,” a spokesperson for the Communications Workers of America (CWA), whose workers are employed by AT&T, told ThinkProgress in an email. “[The $1,000 bonus AT&T announced is] a drop in the bucket compared to what was promised.”

UPDATE: In an email to ThinkProgress on Wednesday evening, a Southwest spokesperson addressed the recent bonuses and related AMFA union concerns. “The bonus is to celebrate the tax reform legislation with all of our Employees. It is not in any way meant to address the contract negotiations with AMFA,” they stated. “We’ve had an industry-leading offer on the table that includes raises for some time now.”

They added, “[We] remain committed to negotiating an agreement that sufficiently rewards our Aircraft Maintenance Technicians, while at the same time preserving our competitive edge.”

This article was originally published at ThinkProgress on January 3, 2018. Reprinted with permission. 

About the Author: Melanie Schmitz is an associate editor at ThinkProgress.

GOP Smash-And-Burn Tax Plan Does Nothing for Workers

Friday, October 27th, 2017

Congressional Republicans are selling a trickle-down tax scam times two. It’s the same old snake oil, with double hype and no cure.

A single statistic explains it all: one percent of Americans – that is the tiny, exclusive club of billionaires and millionaires – get 80 percent of the gain from this tax con. Eighty percent!

But that’s not all! To pay for that unneeded and unwarranted red-ribbon wrapped gift to the uber wealthy, Republicans are slashing and burning $5 trillion in programs cherished by workers, including Medicare and Medicaid.

Look at the statistic in reverse, and it seems worse: 99 percent of Americans will get only 20 percent of the benefit from this GOP tax scam. That’s not tax reform. That’s tax defraud.

Republican tax hucksters claim the uber rich will share. It’s the trickle down effect, they say, the 99 percent will get some trickle down.

It’s a trick. Zilch ever comes down. It’s nothing more than fake tax reform first deployed by voodoo-economics Reagan. There’s a basic question about this flim-flammery: Why do workers always get stuck depending on second-hand benefits? Real tax reform would put the rich in that position for once. Workers would get the big tax breaks and the fat cats could wait to see if any coins trickled up to jingle in their pockets.

House Speaker Paul Ryan claimed Republicans’ primary objective in messing with the tax code is to help the middle class, not the wealthy. Well, there’s a simple way to do that:  Give 99 percent of the tax breaks directly to the 99 percent.

The Republican charlatans hawking this new tax scam are asserting the pure malarkey that it provides two, count them TWO, trickle-down benefits. In addition to the tried-and-false fairytale that the rich will share with the rest after collecting their tax bounty, there’s the additional myth that corporations will redistribute downward some of their big fat tax scam bonuses.

A corporate tax break isn’t some sort of Wall Street baptism that will convert CEOs into believers in the concept of paying workers a fair share of the profit their labor creates.

Corporations have gotten tax breaks before and haven’t done that. And they’ve got plenty of cash to share with workers right now and don’t do it. Instead, they spend corporate money to push up CEO pay. Over the past nine years, corporations have shelled out nearly $4 trillion to buy back their own stock, a ploy that raises stock prices and, right along with them, CEO compensation. Worker pay, meanwhile, flat-lined.

In addition to all of that cash, U.S. corporations are currently sitting on another nearly $2 trillion. But CEOs and corporate boards aren’t sharing any of that with their beleaguered workers, who have struggled with stagnant wages for nearly three decades.

Still, last week, Kevin Hassett, chairman of the President’s Council of Economic Advisers, insisted that the massive corporate tax cut, from 35 percent down to 20 percent, will not trickle, but instead will shower down on workers in the form of pay raises ranging from $4,000 to $9,000 a year.

Booyah! Happy days are here again! With the median wage at $849 per week or $44,148 a year, that would be pay hikes ranging from 9 percent to 20 percent! Unprecedented!

Or, more likely, unrealistic.

Dishonest, incompetent, and absurd” is what Larry Summers called it. Summers was Treasury Secretary for President Bill Clinton and director of the National Economic Council for President Barack Obama.

Jason Furman, a professor at the Harvard Kennedy School who once held Hassett’s title at the  Council of Economic Advisers, called Hassett’s findings “implausible,”  “outside the mainstream” and “far-fetched.”

Frank Lysy, retired from a career at the World Bank, including as its chief economist, agreed that Hassett’s projection was absurd.

Hassett based his findings on unpublished studies by authors who neglected to suffer peer review and projected results with all the clueless positivity of Pollyanna. Meanwhile, Lysy noted, Hassett failed to account for actual experience. That would be the huge corporate tax cuts provided in Reagan’s Tax Reform Act of 1986.

Between 1986 and 1988, the top corporate tax rate dropped from 46 percent to 34 percent, but real wages fell by close to 6 percent between 1986 and 1990.

Thus many economists’ dim assessment of Hassett’s promises.

The other gob-smacking bunkum claim about the Republican tax scam is that it will gin up the economy, and, as a result, the federal government will receive even more tax money. So, in their alternative facts world, cutting taxes on the rich and corporations will not cause deficits. It will result in the government rolling in coin, like a pirate in a treasure trove. That’s the claim, and they’re sticking to it. Like their hero Karl Rove said, “We create our own reality.”

Here’s Republican Sen. Patrick J. Toomey, for example: “This tax plan will be deficit reducing.”

If the Pennsylvania politician truly believes that’s the case, it’s not clear why he voted for a budget that would cut $473 billion from Medicare and $1 trillion from Medicaid. If reducing the tax rate for the rich and corporations really would shrink the deficit, Republicans should be adding money to fund Medicare and Medicaid.

While cutting taxes on the rich won’t really boost the economy, it will increase income inequality. Makes sense, right? Give the richest 1 percenters 80 percent of the gains and the remaining 99 percent only 20 percent and the rich are going to get richer faster.

Economist Thomas Piketty, whose work focuses on wealth and income inequality and who wrote the best seller “Capital in the Twenty First Century,” found in his research no correlation between tax cuts for the rich and economic growth in industrialized countries since the 1970s. He did find, however, that the rich got much richer in countries like the United States that slashed tax rates for the 1 percent than in countries like France and Germany that did not.

This Republican tax scam is a case of the adage that former President George W. Bush once famously bungled: “Fool me once, shame on you. Fool me twice, shame on me.”

This blog was originally published at OurFuture.org on October 27, 2017. Reprinted with permission.

About the Author: Leo Gerard, International President of the United Steelworkers (USW), took office in 2001 after the retirement of former president George Becker.

GOP Pitch to Women: Forget Equal Pay, Let's Talk About Repealing Obamacare

Monday, March 31st, 2014

Laura ClawsonHeading into the 2014 elections, the Republican position on women’s votes and women’s issues is nothing so much as incoherent. They’re defensive about their poor record, so they want to rebut it, but they mostly seem to do so by dismissing every specific issue as a distraction from the real issues. When you get right down to it, the Republican position appears to be “we’re not worried about no stinkin’ women’s issues because OBAMACARE. And we really do care about women’s issues … like OBAMACARE. And besides, we’re not really running as women, but you may want to vote for some of us because we are women.”

For instance, Joni Ernst, a Senate candidate in Iowa, leads her bio with “Mother. Soldier. Conservative for U.S. Senate.” The word “mother” is all over her website. But she says she’s not running on gender:

“It would be historical, but it’s not part of my pitch,” she said of potentially becoming Iowa’s first female senator. “I don’t believe we should vote for somebody based on gender, we vote for the right person and I’m the right person to go to Washington, D.C.”“Of course I’m always very diplomatic in the way that I attack any issue and I think that’s appealing to women. Be straight-forward about [issues], but be compassionate, show them that this is something that really matters to Iowans, not just female but also males,” she said.

It would make history, but I’m not running as a woman, and I’m super diplomatic like a woman, but I’m not running as a woman, and I’m compassionate like a woman, but I’m not running as a woman, and did I mention I’m a mother, but I’m definitely not running as a woman.

So what about equal pay, an issue that women care about? Forget that, Republicans say, because Obamacare:

Republican pollster Kellyanne Conway said reminding both genders of the problems with the Affordable Care Act would trump Democratic attacks on the equal pay issue.“Republicans recognize that this is also the Democratic party’s latest attempt to cry ‘squirrel!’ so women in this country, who control two out of every three health care dollars that are spent and are disproportionately health care consumers and providers… divert their attention from the unspooling of Obamacare,” Conway said.

Ah, yes, the unspooling of more than six million private insurance enrollments, plus themillions covered by Medicaid expansion, plus young people who’ve been able to stay on their parents’ insurance. I think unspooling is what Republican arguments against the law have done. And how’s this as an argument for ignoring equal pay concerns? “Listen, ladies, we know you don’t want to be distracted by a little thing like equal pay. Let us explain how we’d like to take away your affordable health care.”

In the end, this may be one of the greatest (and admittedly one of the few) examples of Republican commitment to equal opportunity. For women, just as for men, their answer to everything is “repeal Obamacare.”

This article was originally printed on Daily Kos on March 31, 2014.  Reprinted with permission.

About the Author: Laura Clawson is the labor editor at the Daily Kos.

GOP Rep. Tells Constituent Who Asks About Raising The Minimum Wage To ‘Get A Job’

Thursday, July 5th, 2012

waldron_travis_bioHouse Democrats earlier this month proposed increasing the federal minimum wage to $10 an hour, which would catch the minimum wage up to the buying power it had in 1968. The proposal hasn’t gone anywhere, though, since Republicans who control the House of Representatives oppose any increase.

Asked by a constituent at a Fourth of July parade yesterday, Florida Rep. Bill Young (R) revealed that he is, predictably, opposed to the Democratic proposal. When a constituent asked him why he opposed boosting worker wages, Young replied simply, “Get a job“:

CONSTITUENT: Hi, I’m (inaudible) how are you? Happy Fourth of July. Jesse Jackson, Jr. is passing a bill around to increase the minimum wage to 10 bucks and hour. Do you support that?
YOUNG: Probably not.
CONSTITUENT: 10 bucks, that would give us a living wage.
YOUNG: How about getting a job?
CONSTITUENT: I do have one.
YOUNG: Well, then why do you want that benefit? Get a job.

Watch it, via FLDemocracy.com:

Young seems to miss the point that the millions of minimum wage workers in this country already have jobs. What they want is a job that will pay them enough to actually live on, and Congress could afford them that “benefit” by making the minimum wage as strong as it was four decades ago.

This blog originally appeared in Think Progress on July 5, 2012. Reprinted with permission.

About the Author: Travis Waldron is a reporter/blogger for ThinkProgress.org at the Center for American Progress Action Fund. Travis grew up in Louisville, Kentucky, and holds a BA in journalism and political science from the University of Kentucky. Before coming to ThinkProgress, he worked as a press aide at the Health Information Center and as a staffer on Kentucky Attorney General Jack Conway’s 2010 Senate campaign. He also interned at National Journal’s Hotline and was a sports writer and political columnist at the Kentucky Kernel, the University of Kentucky’s daily student newspaper.

GOP Rep Who Voted Down ENDA Claims Gay People Are Already Protected From Employment Discrimination

Thursday, May 10th, 2012

Scott Keyes

StasserAnnieRose

It is not uncommon to believe that someone shouldn’t be fired for their sexual orientation — in fact, ninety percent of voters mistakenly say that federal law protects LGBT people employment discrimination.

It turns out that elected officials hold the same misconception — even ones who voted against such measures. Rep. Kenny Marchant (R-TX) today told ThinkProgress that he believes non-discrimination protections are in place for gay workers and that no “citizen of the United States should be discriminated against for any reason:”

STRASSER: Do you believe in other protections for gay people outside of marriage, things like hospital visitation or protection from being fired in the workplace?

MARCHANT: I don’t think any citizen of the United States should be discriminated against for any reason.

KEYES: So if there were legislation saying it’d be illegal to discriminate and fire someone for being gay…

MARCHANT: Those laws are already on the books.

KEYES: I don’t think that’s a law right now.

MARCHANT: Well, I’m not going to stand here and argue with you. I believe that those protections are afforded every citizen of the United States. Whether those laws are enforced or not, that’s up to the Justice Department. I believe that those rights are on the books.

Watch it:

Rep. Marchant mistakenly thinks gay workplace discrimination is already illegal

Marchant seems to have forgotten about the role he played in blocking legislation that would have enacted the protections he championed today. In 2007, Marchant voted against the Employment Non-Discrimination Act, legislation that would have protected LGBT people from workplace discrimination.

In actuality, an employer is able to fire someone for being gay in 29 states and for being transgender in 34 states, and a huge number of LGBT workers have acknowledged discrimination at work.

Luckily, Rep. Marchant will get the opporunity to renew his commitment to fight discrimination of LGBT workers. A bipartisan group of senators released a letter today calling on Congress to hold hearings about putting a non-discrimination law in place. The Senate Health, Education, Labor & Pensions Committee will take up the issue on June 12.

This blog originally appeared in Think Progress on May 10, 2012. Reprinted with permission.

About the author(s): Scott Keyes is a reporter for ThinkProgress.org at the Center for American Progress Action Fund. Scott went to school at Stanford University where he received his B.A. in Political Science and M.A. in Sociology. He has appeared on MSNBC and TBD Newstalk TV and been a guest on many radio shows. His writing has been published by The Atlantic, Politico, the Christian Science Monitor, and the Chronicle of Higher Education. Scott comes to DC from southwest Ohio, a state very near and dear to his heart.
About the author(s): Annie-Rose Strasser is a Reporter/Blogger for ThinkProgress. Before joining American Progress, she worked for the community organizing non-profit Center for Community Change as a new media specialist. Previously, Annie-Rose served as a press assistant for Representative Debbie Wasserman Schultz. Annie-Rose holds a B.A. in English and Creative Writing from the George Washington University.
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