24 Jul 2008

Another Card-Check Myth Debunked

Posted in Blog

The National Association of Manufacturer’s ‘Shopfloor’ blog has post up on another oft-repeated card-check myth. The entry starts out with Big Labor’s favorite rejoinder to critics of the erroneously-titled "Employee Free Choice Act" (EFCA):

The most-common misleading response from organized labor to the criticism that the Employee Free Choice Act will destroy the secret ballot in the workplace goes like…well, here’s a recent example. It comes from Bill McCarthy, president of the Minneapolis Regional Labor Federation.

. . .

"The EFCA would give workers, not employers, the right to decide how to express the choice about going union: through the card-check process OR through the NLRB election process."

McCarthy is playing the readers for idiots. Theoretically, oh sure, union organizers might, possibly, theoretically, choose an election, maybe. But under what possible circumstance would that be a realistic choice?

Well said. Once union organizers are given license to unilaterally bypass NLRB-supervised elections, there’s absolutely no incentive for them to go the less-abusive secret ballot route. Union militants know that card-check drives dramatically increase their chances of warehousing employees into monopoly bargaining collectives by opening the door to intimidation and harassment.

Shopfloor also highlights the excellent congressional testimony (.pdf) of John Raudabaugh, a labor law attorney and former member of the NLRB. Here’s his assesment of the EFCA (emphasis mine):

[Big] Labor claims that elevating card-check to secret ballot status does not do away with the ballot box. Their double-speak is a pathetic attempt to "change the subject." To trigger the secret ballot process and NLRB administrative involvement, 30 percent or more of the employees in an "appropriate unit" must sign a petition requesting an election. Should a union garner signatures from more than 50 percent of the unit employees, an employer can voluntarily recognize the union or not to ensure a secret ballot election. Why? To protect the employee-voter from peer pressure and third party overreaching.

[Big] Labor wants card-check with 50+ percent yield to bypass but equate to the ballot box process. Why? To effectively silence the employer by conducting a quick, one-sided campaign without counter-information from the employer. Moreover, without the ballot-box, there is effectively no cure to overreaching and false Labor promises.

[Big] Labor and its funded academics ignore Taft-Hartley specifically protecting a worker’s right to refrain from third-party representation. Were the union to come up short of 50+ percent signed cards, would it really proceed to file a petition for an election? No, the secret ballot would not remain a real option under the EFCA proposal.

And that’s the bottom line. The card check bill will almost certainly result in the de facto elimination of all secret ballot protections in the workplace. Suggesting otherwise is simply dishonest.

For a more comprehensive look at the EFCA, check out this (.pdf) National Institute for Labor Relations Research study.

24 Jul 2008

Worker Files Civil Damages Lawsuit for Massive Union Harassment Campaign

Posted in News Releases


Hartford, Connecticut (July 24, 2008)
– Today, National Right to Work Foundation staff attorneys are filing a state court lawsuit on behalf of a Connecticut resident who suffered from an ugly campaign of retaliation at the hands of area union officials. The suit alleges that union militants conspired to commit fraud and identity theft in order to bombard Patricia Pelletier with hundreds of mail-order magazines, violating her rights and sticking her with thousands of dollars in subscription and mail order fees.

Because Connecticut lacks a Right to Work law, Pelletier was forced to pay dues to the Communication Workers of America (CWA) Local 1103, as well as accept the union’s workplace representation as a condition of employment. After becoming dissatisfied with the union’s presence, Pelletier initiated a decertification petition to eject the CWA from the workplace. In retaliation, CWA officials apparently conspired to forge Pelletier’s signature on numerous magazine subscriptions. Union militants are also accused of committing identity theft by illegally soliciting business information cards and signing up for advertiser information packages under Pelletier’s name.

These actions resulted in a flood of unwanted magazines and advertisements arriving daily at Pelletier’s doorstep. Not only was Pelletier forced to spend several hours each day canceling individual subscriptions, she was also billed for thousands of dollars by unwitting magazine companies, jeopardizing her credit rating. Pelletier still receives excess mail from a variety of journals and magazines, and her name continues to be circulated through advertiser mailing lists across the country.

In the 31-count suit to be filed today in Hartford Superior Court, Foundation staff attorneys allege that union officials committed identity theft, conspired to forge Pelletier’s signature, inflicted undue emotional distress on Pelletier and her family, and violated Connecticut’s Unfair Trade Practice Act by unlawfully retaliating against Pelletier for attempting to remove the union from her workplace. Foundation attorneys are now seeking damages in excess of $15,000 to compensate Pelletier for CWA union militants’ campaign of retaliation against her.

“Mrs. Pelletier’s plight demonstrates the vicious things union officials will do to punish workers who would rather do without a union,’” said Stefan Gleason, vice president of the National Right to Work Foundation. “Mrs. Pelletier is guilty of nothing more than helping her coworkers give an unwanted union the boot. And the union bosses’ vicious campaign of harassment and intimidation revealed their true nature.”

23 Jul 2008

No More Trees, AFSCME Union Tells Detroit

Posted in Blog

The American Federation of State, County and Municipal Employees union is objecting to a plan by Detroit city officials to turn over an abandoned nursery to Greening of Detroit, a nonprofit group. What’s the problem, exactly?

Using privately raised funds and volunteers, the group would restore the nursery and use it to provide mature trees to neighborhoods. Greening already plants 2,000 trees a year throughout the city.

But the American Federation of State, County and Municipal Employees obtained an injunction from Wayne County Circuit Court against the deal, saying it violates the collective bargaining agreement. The union says the bargaining agreement applies to any deals to turn over control of city operations to a third party — meaning city workers must staff the nursery.

Terrence King, director of the city’s General Services Department, called the union’s position baffling. Not only would no city workers be displaced, but there should be more work for city forestry workers once the trees are grown, he said.

Baffling is an understatement. But if these volunteers were paying forced union dues like Detroit city employees must do, we doubt the union bosses would be objecting.

21 Jul 2008

Wilma Liebman Watch: Is This NLRB Member One of Those Dirty Union Busters, Too?

Posted in Blog

Not long ago we anonymously received a copy of the following press release from the National Labor Relations Board Professional Association union dated June 30:

The Battle To Prevent Another September Massacre at the NLRB

The National Labor Relations Board Professional Association, the union representing attorneys at the Board’s D.C. headquarters, is fighting to prevent another September Massacre. The “massacre” that the Union fears isn’t dozens of controversial decisions but a wave of unfair and discriminatory mid-year appraisals and reprisals against its members.

A new performance-appraisal program sparked this battle. Applying a “forced distribution” model like those popular with corporations like General Electric, the Board forced attorney ratings to fit a pre-established distribution. As a result, the Board’s staff attorneys were more or less equally divided into Exceptional, Commendable, and Proficient categories.

To get this predetermined distribution, Board managers unfairly tinkered with individual ratings. The resultant ratings “downgrades,” in many instances of attorneys long rated in the highest category, prompted grievances by more than one third of 45 staff attorneys.

In addition, because the NLRB’s “rank-and-yank” appraisal system had a discriminatory, adverse impact on the Board’s older female and disabled attorneys, the new system generated discrimination complaints with the Equal Employment Opportunity office and a grievance of the new system’s discriminatory impact on the bargaining unit by the Union.

Board management’s response to the Union’s efforts has been anything but predictable. The NLRB’s lone Democratic member, Wilma Liebman, has not settled a single grievance and threatened reprisals against grievants and a Union officer. Meanwhile, Chairman Peter Schaumber, despite his conservative, pro-employer reputation, has cooperated with the Union to settle most of the appraisal grievances of the attorneys assigned to him.

The Union recently filed grievances against retaliatory conduct by Member Liebman and contacted Congress and the NAACP for help remedying discrimination at the Board.

Where do we begin?

First we chuckle at the notion that every Board attorney fits into one of three categories ("exceptional, commendable, and proficient"), as this ranking system leaves out any possibility that a Board employee does less than "proficient" work. Given the many decisions where the NLRB has been slapped down by appellate courts for faulty logic and abuse of discretion — particularly in cases involving individual employees dissenting from union activity — it would seem that a Board attorney could easily earn a ranking of "deficient" or worse.

Still, Liebman’s apparent hypocrisy raises eyebrows. After years of carrying Big Labor’s water and working to shove forced unionism down the throats of both employers and individual employees (and she apparently also views her quasi-judicial role to essentially include lobbying for Big Labor’s coercive card check bill), Liebman suddenly finds the tables turned. The union activist now stands accused of threats, reprisals, and discrimination against employees by the very union officials that she has worked overtime to empower.

Meanwhile, these union bosses praise NLRB Chairman Peter Schaumber who Liebman has derisively referred to as a promoter of an "individual rights regime." (An individual rights regime? My lands – how positively awful!)

If we thought the situation would make Liebman more sympathetic to employee free choice and individual rights, the whole experience could be a nice little learning experience for her. But we won’t hold our breath.

17 Jul 2008

Employee Rights Group Seeks Federal Criminal Investigation into SEIU Union’s Political Fundraising

Posted in News Releases

Washington, DC (July 17, 2008) – The National Right to Work Foundation has formally requested that the U.S. Department of Labor and U.S. Department of Justice open investigations into a campaign fundraising scheme adopted by the Service Employees International Union (SEIU) at its recent convention.

After reviewing a new amendment to the SEIU constitution, Foundation staff attorneys have concluded that the union and its officers may be violating federal labor law and the Federal Election Campaign Act by imposing financial penalties on local affiliates who fail to meet Political Action Committee (PAC) fundraising targets.

“SEIU bosses are making a mockery of federal law. It’s vital the Department of Justice and Department of Labor take action now before the damage is done,” said Mark Mix, president of the National Right to Work Foundation. “Elections are a cornerstone of our democratic republic, and we need to do everything possible to ensure the results aren’t tainted by unlawful union activism that violates the rights of rank-and-file workers.”

Article XV, Section 18 of the union’s constitution now authorizes the SEIU’s national brass to fine local unions for failure to meet its annual SEIU COPE fundraising obligations. SEIU COPE is the union’s federal PAC, and the FEC lists it as the top labor union PAC with over $23 million in receipts for 2005-2006.

However, federal labor law forbids unions from political fundraising through the imposition of mandatory financial penalties and it prohibits the conversion of union dues to “hard money.” In addition to asking for a Department of Labor investigation, the coercive nature of the amendment’s punitive mechanism violates core provisions of the Federal Election Campaign Act, and warrants a Department of Justice criminal prosecution.

The new amendment also appears to allow local affiliates to use nonmember employees’ mandatory dues payments to cover PAC contributions and the SEIU’s fines. While imposition of financial penalties for failure to make political contributions is illegal regardless of how those fines are spent, the use of funds derived from nonmembers’ fees for political purposes also violates those employees’ constitutional rights.

Union officials have devoted enormous sums of money to influence the upcoming fall elections. Because the SEIU’s political contributions are so significant, Foundation attorneys believe that this amendment has the potential to irreparably compromise the integrity of the electoral process. By coercing local affiliates and nonmember employees into contributing to the SEIU’s massive general election fund, union officials threaten to disenfranchise voters with a firestorm of illegally funded political activism.

In the letter to Attorney General Mukasey, Mix writes for the Foundation: “Not only are large numbers of employees (forced to fill SEIU coffers) harmed by this crime, but, given the close vote in recent national elections, the illegal SEIU activity effectively disenfranchises voters who follow the law… To protect the rights of workers forced to pay compulsory dues and fees, and the integrity of the November elections, I trust you will act upon this information…”

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Download the letters to the DOL and DOJ (pdf)

16 Jul 2008

Pension Fund Mismanagement Highlights SEIU Corruption

Posted in Blog

Yesterday, the Wall Street Journal had a great editorial up on the hypocrisy of SEIU leadership. Andy Stern and his cronies are more intent than ever on blackmailing unwilling companies into forcing SEIU "representation" on their employees through a series of vicious corporate campaigns:

SEIU President Andy Stern is the drama king of Big Labor, and Thursday’s publicity blitz will feature all of his signature choreography: Rallies in 18 states and even overseas, in which thousands of union activists will march against companies and politicians they don’t like. Themes include "Buyout Monsters On the Loose" and "The War on Greed." To listen to Mr. Stern, this is about getting Congress to close tax "loopholes" for private equity firms, while funding national health care and "middle class" tax cuts.

That’s a sideshow. The real targets are private equity firms such as Kohlberg Kravis Roberts and Carlyle Group, which own companies that have resisted SEIU attempts to organize their workers. Mr. Stern wants to pound these firms with bad publicity and political retribution until they break.

What’s worse, it turns out that the SEIU’s activism is apparently being funded illegally. Just today, Foundation president Mark Mix requested a Department of Justice investigation into new SEIU directives allowing Andy Stern to impose financial penalties on any local affiliate that doesn’t meet mandatory political fundraising targets. Not only that, but local unions may be forced to pay the SEIU’s fines with money collected from nonmember employees’ compulsory agency fees. We hope that the DoJ and the Department of Labor will move quickly to investigate this apparent criminal activity (the Foundation’s press release is available here).

Given the SEIU’s checkered past, these new developments aren’t particularly surprising. But aggressive union activism does have a cost. Devoting untold sums of money to intimidating employers evidently comes at the expense of the union’s so-called "representation":

Mr. Stern’s "middle class" spin would be more believable if the SEIU did more for its own members, especially their pensions. Public records based on the SEIU’s own filings show that the SEIU National Industry Pension plan – which covers some 101,000 workers – was only 75% funded in 2006. Put another way, the plan had only three-fourths of the money it needs to meet its retirement obligations. And the national chapter is only the start. Some 13 local SEIU pension plans in 2006 were less than 80% funded; several didn’t reach 65%.

Some of this might be the result of poor investment performance, but the main problem is that the SEIU hasn’t negotiated adequate employer contributions to the plans.

The SEIU’s top brass, on the other hand, is guaranteed generous compensation funded by employees’ mandatory dues-payments. Too bad the workers they’re supposed to be representing don’t receive similar benefits:

On the other hand, SEIU leaders are highly attentive to their own pension funding. A separate fund run by the national union, this one covering the benefits of SEIU officers, was 103% funded in 2006. The top SEIU guns are set for their golden years.

Read the whole sordid tale here.

15 Jul 2008

High Court Urged to Disallow Expansion of Union Monopoly Power to Undercut Workers’ Rights

Posted in News Releases

Washington, DC (July 15, 2008) – Today the National Right to Work Legal Defense Foundation filed arguments with the United States Supreme Court seeking a reaffirmation of a lower court ruling that disallowed deals between union officials and employers to undercut employees’ statutory rights.

This fall, the U.S. Supreme Court will hear oral arguments in 14 Penn Plaza LLC and Temco Service Industries, Inc. v. Steven Pyett, Thomas O’Connell, and Michael Phillips, a case which could have far-reaching implications for employees laboring under union monopoly bargaining contracts.

Pyett, O’Connell, and Phillips sued in federal District Court alleging that their employer had illegally discriminated against them on the basis of age, in violation of federal, New York state, and New York City civil rights statutes. The defendants argued unsuccessfully that the employees, as union members, had waived their right to a judicial forum for their statutory discrimination claims and sought to compel them into arbitration as provided in the collective bargaining agreement. Citing a line of case law dating back to 1974, the District Court ruled that union-negotiated waivers of statutory rights in collective bargaining agreements are unenforceable, and thus the employees retained the right to a judicial forum. The Second Circuit affirmed the lower court’s decision on appeal.

In its brief, the Foundation explains that the regime of union monopoly bargaining – under which a union is installed as the exclusive representative of all employees in negotiations with their employer, even those who don’t want the union’s “representation” – cannot be construed to even further trump individual rights. For an individual’s right to a judicial forum to be waived in an employment contract, it must be done voluntarily. In a collective bargaining agreement, however, workers do not necessarily consent to waive their judicial forum rights, even if the contract claims that they do. For example, union officials may negotiate the arbitration clause with the employer, but they are not required to put the contract to a vote or disclose all its terms.

Even if the union membership votes to approve the contract and arbitration clause, members who chose not to vote or voted against ratification cannot be said to have voluntarily waived their rights. Furthermore, employees who started working for the employer after the contract was ratified never voted for it. Most important, employees who exercise their right to refrain from union membership almost never are allowed to vote on labor contracts.

“We hope the Court will not permit further expansion of monopoly bargaining privileges given to union officials,” said Stefan Gleason, vice president of the National Right to Work Foundation. “This case also concerns Big Labor’s national organizing strategy. Union officials want the ability to offer employers immunity from litigation over employees’ statutory rights if an employer will just recognize the union.”

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The Foundation’s amicus brief can be downloaded here.

15 Jul 2008

Expect Big Labor Power Grabs Next Year

Posted in Blog

Foundation VP Stefan Gleason has an op-ed up over at Human Events on union political activism in the wake of the Supreme Court’s favorable Chamber v. Brown decision. Money quote:

Although the court ruled in favor of employer free speech and employee free choice, workers remain vulnerable to an onslaught of intimidation brought on by card-check organizing drives. In one article about the ruling, an AFL-CIO union lawyer snickered that the outcome would only encourage union bosses to pour more money into passing the erroneously titled “Employee Free Choice Act.” That bill passed the House this year, but a filibuster has stalled it in the Senate. Even if Big Labor and its allies in the Senate don’t get it through this year, you can be sure they’ll be back in ’09.

This legislative power grab—endorsed by union-label politicians and bankrolled by union political funds—is designed to allow union bosses to bypass government-supervised secret ballot elections in favor of card check, tilting the playing field in favor of union organizers.

Read the whole thing here.

14 Jul 2008

Teddy Kennedy is Back At It; Strikes Out Against Workers’ Right to Know

Posted in Blog

On May 12, the Department of Labor issued a notice proposing a few minor rule changes aimed at improving union transparency. To help workers get more information on union expenditures they’re frequently obligated to fund as a condition of employment, the new regulations would revise parts of the LM-2 form, a financial disclosure report filed by unions with over $250,000 in annual revenue.

Among other things, the new regulations would require unions to disclose the amount of money spent on benefits for individual union officers, to report indirect monetary disbursements, to itemize certain receipts of $5,000 or more, and to disclose the identity of the purchaser or seller in transactions involving union assets.

Sounds pretty modest, right? In the past, we’ve blogged about the false promise of reducing union corruption simply by regulating financial disclosure. That said, Freedom@Work certainly doesn’t oppose measures that promote greater transparency. In fact, Foundation staff attorneys filed comments (.pdf) with the Department of Labor in support of the proposed rule changes. We believe that workers have a right to know what activities their mandatory dues payments are funding.

But Senator Ted Kennedy and Representative George Miller beg to differ. In a public letter (.pdf) to the Department of Labor, they claim that the burden of financial accountability (for funds that are essentially handed to them on a silver platter, I might add) is simply too onerous for union bosses to bear (emphasis mine):

The NPRM also advances a misguided proposal that makes it more likely that smaller local unions will face dramatic increases in their financial record-keeping and reporting obligations. The officers of small local unions often work full-time for a represented employer while simultaneously performing their duties as union officers. Their resources are small, and their access to professional assistance – including lawyers and accountants – can be limited.

Senator Kennedy’s newfound enthusiasm for easing America’s regulatory burden is a bit surprising – one wonders why he recently introduced legislation requiring restaurants to list nutritional info for every single menu item – and wholly disingenuous. Local unions are affiliated with larger national and international unions precisely because these entities are supposed to provide "access to professional assistance."

Kennedy and Miller’s blatant hypocrisy is particularly rankling because union bosses have repeatedly used this justification to extract more mandatory dues-payments from nonunion employees. In Lehnert v. Ferris (1991), for example, Foundation attorneys argued before the Supreme Court that nonmember workers should not be forced to pay for union "services" provided from other union affiliates. However, union lawyers successfully claimed that "services" provided by the union’s parent organization justified additional compulsory dues-payments. Here’s the crux of Justice Blackmun’s majority opinion (emphasis mine):

Because the essence of the affiliation relationship is the notion that the parent union will bring to bear its often considerable economic, political, and informational resources when the local is in need of them, that part of a local’s affiliation fee which contributes to the pool of resources potentially available to it is assessed for the bargaining unit’s protection, even if it is not actually expended on that unit in any particular membership year.

In other words, support from Big Labor’s national affiliates is part and parcel of the mandatory agency fee package. If unwilling workers are funding unions’ "considerable economic, political, and informational resources," shouldn’t local affiliates have access to the resources they need to comply with these modest disclosure requirements?

This sordid episode demonstrates the intellectual dishonesty of union bosses and their political allies. Kennedy and Miller should just cut the crap. Like their Big Labor cronies, they just don’t want workers to see the extent to which they are being ripped off. Period.

 

13 Jul 2008

New Low: Indiana Pol Actually Invokes God to Justify Union Power Grab

Posted in Blog

Jill Long Thompson, the Democratic nominee for governor of Indiana, is campaigning on the promise that her first action as chief executive of the state would be to impose union monopoly bargaing on Indiana state employees (and ultimately compel them to fund unions against their will, I presume). Her reasoning could even be viewed as sacriligious by some:

"I think (collective bargaining) is a God-given right," she said.

For the record, union monopoly bargaining is not even a constitutional right, but rather just a controversial statutory privilege granted by certain legislatures. Meanwhile, many sincere employees of faith have successfully raised their religious objections to union affiliation, based on their reading of Scripture (or teachings of other religious faiths).

Thompson’s comments are likely to be deeply offensive to individuals who believe God disapproves of laws that strip employees of their individual freedom to contract and that force workers to affiliate with radical ideological groups.

National Right to Work Foundation attorneys have secured the right of employees of faith to trigger federal civil rights laws to secure a reprieve from all requirements to pay dues to unions thought immoral. Religious objectors to compulsory unionism can learn more about their rights here.