Subject: California’s $20 Fast-Food Minimum Wage Isn’t Enough For Unions: The SEIU’s Next Attempted Magic Trick: LRI INK

February 15, 2024

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California’s $20 Fast-Food Minimum Wage Isn’t Enough For Unions: The SEIU’s Next Attempted Magic Trick

by Kimberly Ricci

California’s FAST Recovery Act, AB 1228, is set to raise the fast-food minimum wage to $20 per hour on April 1. The SEIU pushed hard for the bill, although the union didn’t receive their entire wish list on how far the new fast-food council’s powers would extend. However, the fast food council will still be able to set wages for this industry, and four of the council seats are likely to be controlled by – get this – the California Fast Food Workers Union, which was announced late last week as a new invention of the SEIU.


This creation has the appearance of a first-of-its-kind union, but to be very clear, the SEIU has not succeeded in unionizing any fast-food workers in the traditional sense. Instead, this new entity is a so-called “minority union that bypasses the election process. That topic arose in LRI INK a few years ago when minority unions began to multiply, and as an important distinction, these non-traditional unions do not have collective bargaining rights with companies, so the SEIU seems to be pulling a rabbit out of a hat.


Is the new union “real”? Not really. Michael Saltsman, managing director of the Employment Policies Institute, did not mince words in an opinion column for the Orange County Register. In doing so, he labeled this tactic as “the SEIU’s fake fast-food union.” As Saltsman pointed out, “it has no self-sustaining funding source” and “no apparent power beyond collecting feedback from the union’s existing supporters.”


The SEIU’s objectives: The California Fast Food Workers Union plans to push for 3.5% annual minimum wage increases on top of the upcoming $20 minimum wage. They also want to establish guaranteed minimum work hours and scheduling flexibility by employers. Those workers who opt into the union will pay $20 per month in dues.


More odds and ends: By launching the minority union, SEIU is also tipping its hand and essentially admitting that it failed at organizing fast-food workers in California through customary means, even after lobbying for both Fight For $15 and AB 1228. Presumably, the California Fast Food Workers Union does aim to use council seats to attempt sectoral bargaining, which would make it more powerful than most minority unions. Yet we shall see what the extent of this power turns out to be.


And the end of an era: Interestingly enough, SEIU President Mary Kay Henry recently revealed that she will soon retire. She’s doing so while her union works to further unsettle an industry that is navigating how to afford higher wages for half a million workers on April 1. Then again, she’s also leaving after her union had to invent an illusory mini-union.


The cost of the SEIU’s latest tricks: As we previously detailed, AB 1228 has already burned workers – Pizza Hut laid off over 1,100 delivery drivers, and other chains are leaning into automation – as franchisees prepare for dramatically rising labor costs. Additionally, the SEIU’s new union might be “fake,” but they hope to collect very real dues, even if they are damaging the interests of workers whom they claim to want to represent.

Michigan Waves Goodbye to Right-to-Work

by Michael VanDervort

It isn't just another day in Michigan; it’s the day the state of Michigan decided to take a bold step back in time, repealing its right-to-work law, which takes effect today. It's a big deal, and here's the lowdown on what it means.


The Big Repeal and What It Means

So, Michigan decided to say "see ya" to its right-to-work law, making it the first state in a long while to do a complete 180 on this issue. Under the old law, employees had the choice to join a union or not without the pressure of union dues hanging over their heads. But now, that's all changed. Starting today, employees might have to start coughing up cash to unions, even if they're not members or if they're not exactly fans of where some of that money ends up (think political stuff they might disagree with). People are worried this could mess with the state's business vibe, especially regarding jobs and making Michigan a place employers want to set up shop.


What's the Deal?

It's not all doom and gloom. In non-right-to-work states, federal law allows unions and employers to enter into "union-security" agreements, which require all employees in a bargaining unit to become union members and begin paying union dues and fees within 30 days of being hired.

Employees may choose not to become union members and pay dues or opt to pay only that share of dues used directly for representation, such as collective bargaining and contract administration. Known as objectors, they are no longer union members but are still covered bt the terms of the collective bargaining agreement. Unions are obligated to tell all covered employees about this option, created by a Supreme Court ruling and known as the Beck right. So, you're not entirely tied to union politics if that's not your jam.


Looking Ahead

This whole repeal thing has stirred the pot in Michigan, sparking a big discussion about right-to-work, how unions fit into the picture, and what all this means for the state's future. So, while some might see February 13 as a bit of a gloomy day, it's also a chance to get informed about right-to-work in Michigan going forward and ensure you keep your employees adequately informed about right-to-work and how it impacts them.

Travels Into Labor Unrest: Strike Fever Spreads To The Airline Industry

by Kimberly Ricci

Last year’s United Auto Workers (UAW) “stand-up strike” affected auto manufacturers and caused collateral damage in other industries, propelling unions in other spaces, such as airlines, into strike mode. There is no question that blustering UAW President Shawn Fain, despite not winning all he claimed for his members, has inspired other unions to threaten strikes, too. That contagious unease does not bode well for the aviation industry, which had already struggled with short staffing in post-pandemic mode.


Major airlines, which carry vacationers and business class travelers to destinations daily, could use a holiday. Tensions are particularly fraught for Alaska Air following the Boeing 737 Max 9 incident, which put union contract negotiations at Boeing on pause for machinists, and now there’s more.


A Day Of Action: Alaska Air’s woes further accelerated this week when cabin crew members authorized a strike for the first time since 1993. The vote happened during a Worldwide Flight Attendant Day of Action on Tuesday when workers joined protest pickets at over 30 major airports across the United States, impacting 24 airlines in the process.


The lead-up: Three labor unions previously expressed their intent to send 100,000 flight attendants out for the day of action at most major airlines, including American Airlines, United Airlines, Southwest Airlines, and Frontier. The picketing occurred everywhere, from New York to Chicago to Los Angeles and throughout the heartland.


A slight silver lining: Simply because a strike authorization has occurred, that doesn’t mean a strike is imminent in any industry. A walk-out will also be particularly difficult for flight attendants due to the complicated labor process of securing permission from the feds, which denied American Airlines cabin crew the ability to strike in 2023. If federal mediators eventually find that an impasse has occurred in Alaska Air’s negotiations with flight attendants, then officials will consider the matter. Again, it’s an intricate road to a strike.


Don’t breathe easy yet: Although Alaska Air is likely safe from a flight attendant strike for the time being, their woes will not come down to earth anytime soon. Unions seized upon the summer of 2022’s travel turmoil to put airlines' backs against the wall regarding pilot salaries. This will likely keep flight attendant unions motivated enough to continue picketing.


The wider picture: Most major airlines are currently in union contract negotiations of some variety with workers. This includes at least two-thirds of U.S. flight attendants.


The outlier: Delta Airlines, the only major airline where flight attendants are not yet unionized, has received a message from Democratic lawmakers asking the airline to adopt a neutral stance towards union organizers. Three unions – the Association of Flight Attendants, the Teamsters, and the International Association of Machinists and Aerospace Workers – have expressed their mutual intent to lure 50,000 Delta workers into the fold.


Previously, Delta Flight Attendants repeatedly rejected unionizing, including during a high-profile organizing campaign in 2010. Last year, Delta was also impacted by the Hollywood strikes, so we will keep an eye on Big Labor’s attempts to move beyond unionizing the airline’s pilots.

An Automotive Tune-Up: The UAW’s Current State Of Organizing

by Kimberly Ricci

Much has been made of the United Auto Workers' (UAW) dwindling membership numbers, and rightfully so. No matter how one paints the picture, a zenith of 1.5 million members compared to the current 380,000 is a substantial and frankly embarrassing fall. That’s especially true when about 25% of the UAW’s current members are higher education workers, and only around 150,000 members hail from the Detroit Big Three automakers.


Union President Shawn Fain will never vocalize that nuance, nor will he stop patting himself on the back over the Big Three contract negotiations of 2023. The union’s results were not fantastic – raises of 25% are indisputably lower than the 46% demand – and our own Phil Wilson recently highlighted a damning chart that dispels the myth about union workers making higher wages.


Indeed, that is a reality that Fain would hate for his prospective recruits to see during his push to organize 13 non-union automakers – including Tesla, Volkswagen, Toyota, Volvo, Hyundai, Honda, Mercedes-Benz, Subaru, Nissan, BMW, Mazda, Lucid, and Rivian – in an overall quest to add another 150,000 or so members.


Let’s check in on Fain’s latest promises, which he addressed to Harvard Law School students in a Trade Union chat. Regarding the UAW not winning 46% raises or 32-hour workweek demands, he declared, “If you get everything you ask for in a negotiation, you didn’t ask for enough.” Of a shorter work week, he added, “We’re not going to let that go.”


What is his longer game? Fain is dangling the 32-hour workweek promise for 2028 automakers negotiations. He also took credit for any non-union raises from automakers with a “You Are Welcome” – to rally support for his membership drive. Fain intends to call an auto worker mass strike on May 1, 2028 (i.e., May Day or International Labor Day), the day after the current Big Three contracts expire.


Any more boasts from the guy with an “Eat the Rich” shirt? Quite a few, as it turns out:

  • Over 50% of workers at Volkswagen’s Chattanooga, Tennessee plant have signed union cards.

  • Around 30% of workers at Hyundai’s Vance, Alabama plant have signed union cards.

  • 10,000+ workers from non-union auto plants have signed cards, with the majority sourcing from the two mentioned above.

The more convincing, reality-based number: Of the targeted workers at non-union auto plants, 93% have not signed union cards yet.


The National Right To Work Foundation also warns that the UAW likely plans to claim victory without a union vote and by card-check process only. If true, they will do so via the NLRB’s new Cemex framework “despite workers voting down the union in both 2014 and 2019.”


The main takeaway: This union’s fight is not really for workers. The true goal is survival for the UAW in a time of historically low union density in the U.S. When you frame it that way, Fain’s constant boasting may sound silly, but employees can be lured by a union’s false promises. Employers that foster exceptional workplaces stand the best chance of never dealing with a campaign.

About Labor Relations INK

Labor Relations INK is published weekly and is edited by Labor Relations Institute, Inc. Feel free to pass this newsletter on to anyone you think might enjoy it. New subscribers can sign up by visiting here.


If you use content from this newsletter, please attribute it to Labor Relations Institute and include our website: http://www.LRIonline.com 


Contributing editors for this issue: Greg Kittinger, Michael VanDervort, and Kimberly Ricci 


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About Labor Relations Institute

LRI exists to help our clients thrive and become extraordinary workplaces. We improve the lives of working people by strengthening relationships with their leaders and each other. For over 41 years, LRI has led the labor and employee relations industry, driven by our core values and our proven process, the LRI Way.

 

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