April 2009

 
The Employee Free Choice Act Will Not Take Away the Secret Ballot

The Employee Free Choice Act, a critical bill to restore the freedom to form unions and bargain and end corporate coercion of workers, likely will be considered by Congress this spring. The act would level the playing field for workers seeking to form unions. It also would give workers, not bosses, the option of choosing how to form a union: through the National Labor Relations Board (NLRB) process or through majority sign-up.

As Congress gets set to consider the Employee Free Choice Act — and big corporations spend millions to block it — you'll hear a lot of confusing rhetoric about what "majority sign-up" would mean for workers. Here are the facts about how the Employee Free Choice Act would protect workers’ freedom to form a union and choose the method by which they form a union.

Majority sign-up enables workers to form a union when a majority sign authorization cards stating they want to form a union. It's that simple. Under the Employee Free Choice Act, if a majority of workers sign cards indicating they want to form a union, their boss would be required to recognize their wishes and bargain for a fair contract.

Unfortunately, despite the fact that majority sign-up is legal now, companies can unilaterally refuse to recognize the wishes of a majority of employees. They can ignore majority sign-up and instead force workers into a corporate-dominated system that fundamentally blocks workers' freedom to form unions.

The NLRB election process is nothing like local, state or federal elections. With one-sided rules and no effective penalties for misbehavior, corporations dominate the NLRB process. The employer can control wages and hours, impose mandatory group or individual meetings so as to distribute misleading anti-union messages, hire multimillion dollar anti-union consultants and use harassment, threats, delays and even terminations to scare workers away from voting for a union.

These are the facts about corporate interference during the run-up to an NLRB election:

• 92 percent of companies force employees to attend mandatory closed-door meetings.
  
• 51 percent of companies threaten to close if workers form a union.
  
• 75 percent of companies hire union-busting consultants.
  
• 78 percent of companies force workers to have one-on-one meetings with supervisors against voting for a union.
  
• 25 percent of employers illegally fire at least one worker trying to form a union.
  
• Even if workers get the signatures of 60 percent, 70 percent or 80 percent of their co-workers in support of a union, coercive management tactics and constant pressure can scare them into voting against their stated preference. The system is broken.

Regardless of how the vote is taken, the NLRB process as it currently exists is neither free nor fair—especially since it's the boss's decision, not the workers'.

But when workers have the option to choose majority sign-up to form a union, they often do so. It has been a legal process since 1935, and it works. It's well-established and effective, and workers in 15 states have the right to form a union by majority sign-up.

Responsible employers around the country allow their workers to form unions by legal majority sign-up. It's a fair and recognized way for workers to form unions.

In fact, academic studies show that workers who organize under majority sign-up feel less pressure from co-workers to support the union than workers who organize under the NLRB election process. Workers who vote by majority sign-up also report far less pressure or coercion from management to oppose the union than workers who go through NLRB elections.

Dozens of countries around the world, including nearly every industrialized democracy, allow workers to use majority sign-up procedures to form a union. That's true in countries from Japan to Finland to Israel to Canada.

If a majority of workers want a union, they should get a union. It's that simple, and majority sign-up can help make that basic human right a reality.

 

IBC to Close Ohio and Missouri Bakeries

Interstate Bakeries Corp. (IBC) announced plans to close baking plants in Columbus, Ohio, and Springfield, Mo. in May, citing "changing consumer preferences and market conditions."  BCTGM Local 57 members are employed at the Columbus plant and Local 218 members are employed at the Springfield bakery.

In February, IBC had closed a production line at the Columbus plant, a move that eliminated 38 of its 70 jobs at the plant.

According to IBC, the two baking plants employ a combined total of 232 people. IBC added that local market developments, including declines of bread volume from customer purchases, have prompted the company to rationalize its production capacity.

"While closing bakeries is always a difficult decision to make, it's important that we continue to shape our business to meet the demands of the marketplace," said Craig Jung, chief executive officer. "We deeply regret the impact this decision will have on our talented employees and their families."

Bimbo Moves U.S. Headquarters

Bimbo Bakeries USA, the U.S. division of Grupo Bimbo S.A.B. de C.V., has shifted its U.S. headquarters to Horsham, Pa., from Fort Worth, Texas. Fort Worth is expected to remain the headquarters for the Western division of Bimbo Bakeries USA, the company said. Horsham, which is a suburb of Philadelphia, was the U.S. headquarters of Toronto-based George Weston Bakeries prior to the Weston unit sale. The spokesperson noted that the move has
not resulted in a change in employment in Fort Worth.

Kellogg's Cuts Omaha jobs

Kellogg's has eliminated jobs at its cereal plant in Omaha, Neb. Workers at the plant are members of BCTGM Local 50G. According to the local union, the immediate job cuts were management positions, and the 500 union workers at the plant had not been affected.

Kellogg's spokeswoman Kris Charles said the company was simplifying manufacturing procedures across the country to improve efficiency. Charles said the company didn't plan a formal announcement about the job cuts, nor would she say how many people were affected.

Pennant Acquires General Mills Frozen Dough Business

Pennant Foods has entered an agreement to acquire a portion of the frozen bread dough business of General Mills, Inc.'s Bakeries and Foodservice unit. As part of the transaction, Pennant Foods, based in Itaska, Ill., would acquire four manufacturing facilities located in Bakersfield, Calif.; Hazleton, Pa.; Vinita, Okla.; and Montreal.

"The addition of these capabilities will greatly enhance Pennant's ability to serve the growing needs of our key customers, as well as open new markets to the company," said Jim Clough, president of Pennant Foods.

Craig Olson, president and chief executive officer of Fresh Start Bakeries, parent of Pennant Foods, added, "Our objective is to build on and broaden the products and services we provide to our customers in the global bakery products market. Pennant has been a strong and reliable performer for Fresh Start and I am confident that the synergy's of this acquisition will both solidify and grow the value we provide to our customers."

Weston Operating Earnings Increase

Operating income of the fresh baking business of George Weston Ltd. in the year ended December 31, 2008, was C$218 million ($173.7 million), nearly unchanged from C$219 million in 2007. Sales were C$2,422 million ($1,930 million), up 10 percent. Results for the business, previously part of the company's Weston Foods segment, were reported as discontinued operations, reflecting the December 10 agreement to sell the business to Grupo Bimbo S.A.B. de C.V. The transaction was completed subsequent to the end of the quarter, on January 21. Weston said it expects to record a gain of about C$800 million in connection with the sale of the business. The company said it will "continue to assess its strategic options for the deployment of the proceeds of these divestitures."

Operating income of the fresh business in the quarter ended December 31 was C$60 million ($47.8 million), up 43 percent, from C$42 million during the same period in 2007. Sales were C$665 million ($530 million), up 43 percent. Frozen bakery sales rose 10 percent in 2008 from 2007 and 18 percent in the fourth quarter, driven mainly by price increases and changes in sales mix. Volume was flat for the year but up in the fourth quarter, boosted by increases in certain categories and an additional week of operating results. Biscuit sales, principally wafers, ice-cream cones, cookies and crackers, increased by approximately 17 percent in the fourth quarter of of 2008 and 8.7 percent year-to-date compared to the same periods in 2007, Weston said.

Kraft CEO's 2008 Compensation Jumps

Kraft Foods Inc. CEO Irene Rosenfeld's compensation package rose about 50 percent to $17 million last year, due in large part to increased stock, stock options and annual incentive awards.

Rosenfeld's salary was about $1.5 million in 2008, up from $1.4 million the prior year, Kraft reported in its annual proxy statement filed with the Securities and Exchange Commission.

Rosenfeld said last month that Kraft would freeze top executive salaries in 2009. Rosenfeld and other top officers did not receive a bonus in 2008.

Still, other compensation rose. Rosenfeld received stock awards of about $7.3 million, up from $4.6 million a year earlier, and options valued at $1.3 million, up from $395,933 a year ago. Annual incentive awards rose to $4.1 million from $2.6 million.

Kraft's total shareholder return exceeded the company's peer group and other benchmarks, though the company noted that 2008 was a "difficult year for Kraft Foods shareholders."  Kraft shares fell 17 percent in 2008, while the Standard & Poor's 500 index fell 38.5 percent.

The company said its organic revenue—a measure that excludes the impact of currency fluctuations—acquisitions and divestitures, rose 6.6 percent, exceeding its goal of 4.2 percent.

However ongoing operating income, on a constant currency basis, rose only 12.2 percent, below Kraft's target of 17.3 percent. That shortfall was largely due to the impact of losses on certain commodity hedging positions, the company said.

Kraft's discretionary cash flow (cash flow from operations minus capital expenditures) was $2.77 billion, well above its $2.28 billion goal.

 

2009 Health Care Survey

Just as the Obama Administration is putting health care reform squarely on the nation's policy table, the AFL-CIO and its community affiliate Working America launched a massive online survey to gauge the health care experiences of America's working families.  Last year's online survey captured one of the largest opinion pools available on health care, with over 26,000 people participating.

The online survey gives working families an opportunity to make their voices heard about what they are experiencing.  The results and health care stories from participants will be distributed to health care decision makers around the country. This year's survey asks:

• How has the economic downturn affected your household in the past year?
• In the past year, have you or has someone in your household lost health coverage because of losing a job or changing jobs?
• Are you able to get the health care you need at a price you can afford?
• How much did you and your household spend out of your own pockets for health care in the past year? 
• If you have insurance, how easy or hard is it to talk to someone at your insurance company about what is covered or coverage decisions? 

Last year, 7,500 people of the 26,000 survey respondents took the time to tell individual heart wrenching stories.  The survey revealed deep concerns about the costs of health care:

• One third of respondents reported skipping medical care because of cost, and a quarter had serious problems paying for the care they needed.
• Ninety-five percent said they are somewhat or very concerned about being able to afford health insurance in the coming years.
• Ninety-five percent of respondents said America’s health care system needs fundamental change.

Working America is a community affiliate of the AFL-CIO and an advocate for working people. Working America represents 2.5 million workers, without the benefit of a union on the job, who share common challenges and goals including fighting for quality affordable health care.

Click here to take the 2009 Health Care Survey.

"Bye, America"

IBEW Local 688 President Lance Biglin in Mansfield, Ohio has taken a creative approach to help educate Americans on the importance of buying American. Biglin, together with his wife, has published a children's book, "Bye, America" to help teach children, and in some cases their parents, why it is important to buy American made products.

In his letter introducing the book Biglin writes, "This is the story of four million American families who have seen their jobs disappear over the last eight years."

The story follows one worker who loses his job at a vacuum cleaner factory when his factory moves to China. The father takes his children to "Walrus Mart" to show them why it is important to buy American-made products. Sadly, every product they looked at was labeled "Made in China".

"The United States has lost 3,500,00 jobs since the year 2000. Most of these were jobs that paid Americans a fair wage for a hard day's work. When these jobs leave our country, there is very seldom an opportunity for a better job for these displaced workers. This book gives you a chance to sit down with the next generation of Americans and explain to them the importance of supporting their fellow countrymen. We are not losing these jobs because we are unproductive; we are losing these jobs because other countries are exploiting their workers, producing unsafe goods and just plain cheating," concludes Biglin.

The book is beautifully illustrated by the author's wife, Kristi Biglin. To order copies of the book, which is "proudly union printed in the U.S.A.", visit www.byeamerica.com.

Obama Honors César Chávez

What a difference a year makes. While the Bush White House tried to thwart workers' rights and all that the late César Chávez fought for, Barack Obama adopted Chávez's rallying cry as his campaign theme.

On March 31, which would have been Chávez's 82nd birthday, President Obama issued a statement hailing the former Farm Workers president as "an educator, environmentalist, and as a civil rights leader who struggled for fair treatment and fair wages for America's workers."

"Chávez's rallying cry, Sí Se Puede —Yes, We Can— was more than a slogan, it was an expression of hope and a rejection of those who said farm workers could not organize, and could not take on the growers. Through his courage, César Chávez taught us that a single voice could change our country, and that together, we could make America a stronger, more just, and more prosperous nation," noted President Obama.

The AFL-CIO is supporting efforts to create a national holiday to honor Chávez. Last year during the presidential campaign, Obama said we should have a holiday for Chávez. "It's time to recognize the contributions of this American icon to the ongoing efforts to perfect our union," declared the President.

Last-Ditch Bush Rule Would Threaten Retirement Security 

In a last-gasp effort to reward its corporate friends, the Bush Administration—on the very day of Barack Obama's inauguration—proposed a new regulation that could reduce Americans' retirement security by allowing firms to give financial advice to workers who participate in their 401(k) plans on products where they have a financial interest.

Current laws prohibit such conflicts of interest and the Obama administration has put the regulation on hold.

At a Congressional hearing last week, Rep. Robert Andrews (D-N.J.), chairman of the House Education and Labor's Subcommittee on Health, Employment, Labor and Pensions, said, "If workers receive investment advice, it should be independent and free of conflicts of interest. During a time where American workers have already lost $2 trillion in assets due to last year's market downturn, exposing their hard-earned retirement savings to greater risk by allowing advisers to offer them conflicted advice is irresponsible and imprudent."

The U.S. Government Accountability Office (GAO) examined Security and Exchange Commission data on pension plans and found that undisclosed conflicts of interest could lead to low returns—and less secure retirements—than those plans that properly documented any financial interests. GAO's Charles Jeszeck told the panel, "The threat posed to participants in account based retirement plans like 401(k)s, now the primary plan design in the United States, is quite direct. Since workers largely bear the risk of investment under this plan design, any factor, and decision that reduces the account's rate of return can have potentially irreversible consequences for the participant's retirement income."

 

Pass the BCTGM-made milk to enjoy with your BCTGM-made cookies or cereal! On March 17, more than 100 workers at Land-O-Sun Dairy in Richmond, Va. voted to join BCTGM Local 358 (Richmond).

Land-O-Sun Dairy, a subsidiary of dairy giant Dean Foods, produces all varieties of fresh milk under private label brands.  Land-O-Sun Dairy, which was acquired by Dean Foods in 1998, has dairies in several other states, including Tennessee, Georgia, Illinois, North Carolina, South Carolina and Kentucky, which produce fluid dairy and ice-cream.

The campaign was led by Local 358 Financial Secretary Ted Constable and Local 358 President/Organizer Ray Daniels and International Representative/Organizer Jimmy Condran.  Also assisting in the campaign were Local 358 members from two other facilities: Maurice Canady, Kraft Foods Chief Shop Steward and Phillip Ware, Filtrona Payne Chief Shop Steward.

The company did not immediately offer voluntary recognition after a majority of the workers at the plant signed union authorization cards in June 2008.The local union filed for an election with the National Labor Relations Board. In the meantime, the company hired a union-busting law firm to stifle the organizing drive, and began holding mandatory meetings to try to convince the workers to vote against unionization.

The workers withstood management's campaign and Local 358 intensified their efforts to educate the workers on the benefits of belonging to the BCTGM.

On election day, the workers were so determined to have a union that two employees got out of sick beds and came to the voting site to vote for the union and then returned home. More than 70 percent of the Land-O-Sun workers voted to join the BCTGM.

Congratulations to Local 358 organizers for their hard work and determination in this organizing drive! And welcome to BCTGM union family Land-O-Sun workers!

 

 

Strike Report

On August 14, 121 members of BCTGM Local 50 went on strike at the Stella D'Oro bakery located in Bronx, N.Y. The strike continues.