Labor Relations INK July 2022

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Subject: Labor Relations INK July 2022

July 28, 2022

To visit the blog post, click on the link below that article.

Next week's INK issue will contain Phil's Labor Relations Insight article.

NLRB & Abruzzo Sued

by Greg Kittinger

The NLRB General Counsel, Jennifer Abruzzo, is taking heat for her attempt to eliminate captive audience meetings. Republicans from the House Education and Labor Committee sent a letter to Abruzzo with this reprimand:

“It is a violation of separation of powers constitutional principles for any Senate-confirmed executive branch official to implement policy Congress has refused to enact or to ignore existing law simply based on policy preferences. Congress, through carefully crafted legislation, has granted the Board sufficient tools to preserve an employee’s right of free association. It is not for the General Counsel to expand or limit its authority as the current occupant personally sees fit.”

Meanwhile, the Texas Public Policy Foundation’s Center for the American Future sued the NLRB and Abruzzo over the memo on behalf of five Texas staffing agencies. The staffing firms want the court to set aside the guidance as unconstitutional and block the NLRB general counsel’s office from enforcing it through litigation.

Abruzzo continues to churn out Guidance Memos encouraging Regional NLRB officials to put the pressure on employers. In a June 28th memo she applauded the Regions for continuing to require “full remedies” in settlement agreements (in Unfair Labor Practice charges), and encouraged them to “be proactive in ensuring compliance with settlement agreements, including enforcing default judgment provisions in the event of non-compliance.”

One suspects that Abruzzo sees anti-worker sentiment in every conceivable business activity. The new “partnership” between the NLRB and the Justice Department’s Anti-Trust division seems to be another page in that playbook. Presumably Abruzzo hopes to find violations of labor laws in anti-trust actions or investigations.

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Biden’s Band-Aid Bailout For Union Pensions

by Kimberly Ricci

In addition to the ringing government endorsements and funding for the NLRB, Biden is preparing to deliver a federally funded shot in the arm to private-sector union pension plans. It’s a short-term solution to a long-term problem, given that over 200 of these plans stand on the brink of insolvency. Biden’s bailout also neglects to address a separate issue - the ongoing mismanagement of funds by union bureaucrats.

Biden’s final rule on the subject circles back to funds that were bundled into the 2021 American Rescue Plan Act (meant to boost the economy amid pandemic downswings). A certain percentage will be invested into stocks, and Biden believes that this will keep the flagging pensions solvent until at least 2051. Yet these pension plans were in trouble long before the pandemic, and Biden’s delayed course of action invites skepticism about whether this is a purely political move ahead of midterm elections.

Let’s just say that Biden is foggy on specifics for how this plan will be more than a temporary fix, and the plan places the onus upon taxpayers during a time of inflation. Further, experts expressed disbelief at whether the pension plans could survive without further government bailouts to stay afloat.

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Score Board

Who are the winners (and losers) of the labor movement? Don't guess, just check the LRI Scoreboard

View this month's scoreboard (archives also located here).

Download a PDF of this month's scoreboard

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Public Faith In Unions Remains Strong, Even As Membership Falls

by Kimberly Ricci

The annual Gallup poll about major U.S. institutions reveals an unsurprising decrease in confidence in fifteen influential entities, including the presidency, the Supreme Court, Congress, tech companies, and organized religion. In fact, American confidence in institutions now sits at an all-time low, with the exception of one area - organized labor.

In 2021 and 2022, 28% of those polled expressed significant confidence in organized labor with Democrats (especially younger workers) characteristically showing more union confidence (41%) than Republicans (15%) and Independents (27%). Those poll numbers, however, don’t reflect the reality of organized labor in the U.S.

Big Labor’s numbers continue to fall to abysmal levels with 2021 yielding 10.3% total union membership in the U.S. workforce (private-sector membership: 6.1%). That’s a tie for a record low, and although high profile organizing campaigns make big headlines, the number of union petitions aren’t breaking organizing records in 2022.

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The UAW Can’t (Won’t?) Kick Their Corruptive Habits
by Kimberly Ricci

We recently told you that the UAW’s federal watchdog revealed frustration at how the union began to evade supervision, proving that the deep-pocketed organization’s well-publicized scandals are not a thing of the past. This week, that reality could translate into an awkward UAW Constitutional Convention, where the union is refusing press access, perhaps knowing that there’s no use in promoting a bad look.

The federal watchdog’s Justice Department-appointed monitor, Neil Barofsky, released a damning report that revealed how current UAW President Ray Curry is failing to root the corruption that’s firmly entrenched in the union’s culture. Barofsky reports that the UAW had “veered sharply in the wrong direction” rather than cooperate with monitoring, and union officials are dragging their feet for “production of other investigative materials” that point toward the “mishandling” of monies by a top UAW official.

Barofsky (who will remain in his post as monitor until early 2027) continues to monitor 19 ongoing investigations into alleged misdeeds within the UAW, including five new ones, which allege that bureaucrats still mismanage astounding sums. Allegations of the union’s failure to cooperate will certainly weigh heavily upon the convention, which arrives after a referendum for members to directly vote for their leaders, and many challengers want to unseat Curry as president.

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Role-Playing Dinner Theaters Are Now Organizing Amid The Starbucks Saga

by Kimberly Ricci

Those headline-making union drives at Starbucks largely ignore the big picture of organized labor, including dwindling total union membership and petition numbers that aren’t (yet) breaking records. Still, no one can deny that the new toolbox of organizing strategies attracts attention, and those union successes motivate other frustrated workers (at the same company or even across the street) to seek representation.

The New York Times recently published a feature article saying college-educated workers (including a Rhodes scholar who became a leader in the Starbucks barista effort) are fueling momentum for union drives. Their motivation, according to a NYT labor reporter, fits with a “tradition” of radically political people who go into jobs with the specific intent of organizing their workplace. These workers (i.e. “salts”) are educated and frustrated and wish to effect change, and their efforts motivate others.

These workers are empowered by the tight labor market and the current economic situation. Yet whether these organizing firebrands can work long-term change remains to be seen. That same uncertainty applies to the Starbucks saga itself:

CEO Howard Schultz published a message that urged workers and customers to embrace reinvention, which he promises will “radically” reimagine the customer experiences, adjust the company mission as whole, and heal divided stores. The timing suggests that the letter strives to tamp down worker unrest, although Schultz remains vague on those specifics.
The federal court case involving a 10(j) injunction action filed against Starbucks will percolate for several months while all eyes remain on the outcome. If the judge rules fully for the NLRB and against Starbucks (on allegations of 200 unfair labor practices), the coffee giant could be forced to recognize and bargain with the union. An appeal by Starbucks could take years, but as LRI’s Phil Wilson previously explained, many troubling aspects of the case are worth scrutinizing for insight into how the NLRB is manipulating the case to fit their agenda. Already, the judge approved inclusion of an employee’s secret recording of a meeting.
As the Starbucks national organizing trend – at least 150 (of 9,000 total) cafes have unionized thus far – not every campaign lands as a home run. Workers at an El Dorado Hills, California location voted against unionization, and a re-voted election in Cheektowaga, New York ended in a tie with Starbucks Workers United casting doubt on one vote (that outcome is still up in the air).
The unionizing trend coincides with Starbucks announcing planned closures for 16 locations (in Los Angeles, Seattle, D.C., and Philadelphia). The company cites safety concerns as a motivating factor for shuttering stores, although Seattle workers filed an NLRB complaint to claim that these closures are retaliation against unions. In response, Howard Schultz warned the public to expect “many more” cafe closures. As if that wasn’t enough conflict, one cafe’s baristas went on strike over an alleged threat to remove healthcare benefits in unionized locations.

Here are some odds and ends to tie up this organizing roundup:

A dinner-theater chain’s mock-fighting knights and stablehands hopped on the organizing horse. Medieval Times workers in New Jersey became the company’s first staff to vote for a union, the American Guild of Variety Artists, after claiming “dire” working conditions, full of potentially dangerous performances that require specialized training. Workers at a second location in California followed suit.
Chipotle is wading into Starbucks-esque waters by permanently closing a Maine location where workers were attempting to organize. The company declared that the shuttering happened due to staffing difficulties, but workers filed an NLRB complaint for what they claim is retaliation.
The Amazon Labor Union launched new organizing campaigns at two warehouses in Albany, New York and Campbellsville, Kentucky. Workers at a third warehouse (in Garner, North Carolina) could soon join the union effort, although flagging momentum in New York City has led the union to abandon efforts to organize further in the immediate area and focus efforts on maintaining the union’s first success at JFK8.
Museum workers increasingly seek outside representation with a few new twists. A Meow Wolf (immersive art installation company) location in Denver could be the second location to form a union after a Santa Fe location joined the CWA. And in Hollywood, workers at the Academy Museum of Motion Pictures voted to join Cultural Workers United.
Capitol Hill in Washington, D.C. now follows up on a development from two years ago when the House approved staffers’ right to organize. Workers in eight House offices (those who mainly support Democratic lawmakers) filed for a vote to join the Congressional Workers Union. No doubt, there will be more to come.

Blog Post

Union Demands For Pilots Are More Certain Than Flight Schedules
by Kimberly Ricci

Air travel delays and cancellations filled the month of July with thousands of angry customers, which does not bode well for a harmonious workplace. Much of the problem comes down to staffing shortages and weather-related issues, but ongoing pilot strikes are not helping the situation. Major airlines including Delta, United, and American Airlines all feel the strain of overbooked schedules and staff exhaustion.

Pilots find themselves in particular demand, and unions are leveraging that weight to demand those huge raises that we told you about a few weeks ago. The Air Line Pilots Association representing United Airlines pilots will soon head back to the bargaining table after union members expressed disappointment in the deal’s raises (14% spread over 18 months).

That sentiment spans the globe, including in Sweden, where Scandinavian Airlines appears to have barely survived a 15-day strike while the union and airline (which filed for bankruptcy protection on the second day) hammered out a collective bargaining agreement for pilots.

Don’t forget about flight attendants. Flight delays and cancellations toss their schedules into turmoil, often without full compensation while attendants wait alongside frustrated passengers. No doubt, the aviation industry will feel the crunch for months to come.

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Nurses Unions Failing To Deliver As Promised

by Kimberly Ricci

Ongoing unrest still prevails in this industry. Staffing issues, budgetary shortfalls, safety concerns, and dwindling Covid-19 funds guarantee that there is no immediate workplace relief in sight. To that end, Surgeon General Vivek Murthy, M.D. issued an advisory report filled with recommendations to help healthcare workers fight widespread burnout, which could further cripple hospital systems within five years.

Murthy’s guidance includes beefing up staffing numbers, which is easier said than done with hospitals turning to contract labor to fill gaps. There is no legally binding aspect to the report, but unions including the SEIU will undoubtedly point toward the report while negotiating future contracts and putting workers into strike mode.

Here’s a few union-related developments of note:

Planned Parenthood locations (in Minnesota, Iowa, Nebraska, and the Dakotas), voted to unionize, adding 28 clinics and over 400 workers to the SEIU roster.
Over 200 Mayo Clinic Nurses in Minnesota voted to remove their union, the Minnesota Nurses Association, after seven decades of representation.
Nurses at Maine Medical Center (in Portland) could soon decertify their union, and this case is notable due to the short duration of representation by Maine State Nurses Association. Nurses voted for the union in April 2021, and 15 months later, the nurses could boot the union after it failed to reach a contract.
Nurse strikes continue to pop up throughout the industry due to nurses absorbing the brunt of pandemic stress in hospital systems. It also cannot be overstated how the job’s physical/emotional demands take their toll on nurses’ mental health. In California, Kaiser Permanente nurses in Los Angeles and Shasta Regional Medical Center nurses in Redding continue to wage periodic strikes to ask management to adopt best practices for staffing and safety.

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When To Hold ‘Em Vs. When To Fold ‘Em

by Kimberly Ricci

Major Atlantic City establishments narrowly avoided a shutdown during the tourism-focused month of July. An eleventh-hour agreement sealed the deals to avert a strike by 6,000 workers (belonging to the UNITE HERE union) at four of the city’s casinos that would have spanned the fourth of July weekend and beyond. According to the union, the strike would have cost a collective $2.6 million in casino losses per day.

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The UAW’s Leadership Woes Threaten To Topple A Once-Mighty Giant

by Kimberly Ricci

This notoriously corrupt union is not stable in any sense of the word, and much of the threatening calls are (much like in a horror movie) coming from inside the house. To that end, international President Ray Curry is sounding the alarm on a dire situation - falling membership numbers. Over the course of one pandemic year, the union lost at least six percent of its members, and Curry believes that if those numbers don’t come back, the 372,000-member union won’t survive. That’s why the thousands of future workers at EV plants will be so critical in determining whether the UAW can claim longevity.

One thing is certain - Curry’s status as president isn’t a done deal forever. He has several rivals looking to take over his role after the recent referendum that will allow members to directly elect their leaders. Will this method restore members’ faith? Not all by itself. Curry could very well be ousted following campaigns from opponents during the union’s late-July convention.

Although the UAW is not entirely rudderless, it’s not making new industry fans:

A critical eye has landed upon a UAW deal with Ford, which led a UAW member to vocally accuse (in an op-ed) the company and union of climbing “in bed” with each other with a neutrality agreement. The worker lashed out after Ford consented to allowing the UAW to deny workers a secret vote and organize through card check. The UAW member wrote, “I can personally attest to the coercion that can come from union officials.” He declared the card check method to create a “shockingly unfair advantage” to the union and against workers.
Four Michigan GM plants nearly saw UAW members walk off the job, but a last-minute deal (for pay raises) brought temporary relief to the factories, two of which build EVs. The threatened strikes would have shut down the plants, and the conflict proves that auto workers can and will gamble (paywall) even in the face of a possible U.S. economic recession.
That Union-led gamble can also take place in auto sales, including a San Diego Mercedes-Benz dealership where repair technicians picketed after claiming that 10-15% raises for techs simply was not enough.

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Even The God Of Thunder Can’t Avoid Unions In The Media/Tech Realm

by Kimberly Ricci

Alamo Drafthouse Theater workers in Texas voted for a sick-out while asking for a raise of at least $4 per hour. The publicized initiative reportedly led to a ticket sales decrease of 50% and cancellation of some season passes. Strategically speaking, the union scheduled the strike immediately prior to the Thor: Love and Thunder release. It’s a trick that not even Loki would pull.

We digress. This industry’s other developments run varied, far, and wide:

Alaska-based AT&T employees voted to strike after failed Teamsters contract negotiations, which led to nearly no movement for wage increases. For Verizon Wireless retail workers, however, the CWA floodgates appear to be open. In Michigan and Oregon, the company’s workers filed for a union vote. These filings arrive on the heels of Verizon stores in the Seattle area becoming the first non-New York stores to successfully organize.
HarperCollins (one of few large publishers with unionized workers) saw workers go on a UAW-led strike in Manhattan, where workers say that their salaries are not sustainable amid rising inflation and “record breaking profits” at the company.
The International Alliance of Theatrical Stage Employees (IATSE) waged a fall 2021 commercial crew walk-off, which has inspired various production teams to organize as a grassroots worker collective called Stand with Production. The group is currently in union card-check mode, and this is happening after the IATSE and Teamsters re-upped their long-running “Mutual Aid and Assistance Pact” (full of shared organizing initiatives) after Sean O’Brien took over as the Teamsters international president.

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The NLRB Wants To Pull A Rabbit Out Of The Gig Economy’s Hat

by Kimberly Ricci

We recently told you that the gig economy could be the biggest winner of inflation while also awaiting watershed moments. Recently, that wait ended in disappointment for gig work companies operating in Massachusetts, where the state’s highest court shut down a bid from these companies (including Uber and DoorDash) that wanted their drivers to be definitively classified as independent contractors, rather than employees.

This ruling will surely have future effects on the wage and tax-liability fronts for these companies, and NLRB General Counsel Jennifer Abruzzo continues to push for overturning the 2019 Velox Express decision, which found that a courier company was not required to classify independently-contracted drivers as employees. Analysts believe that a Velox overturning is unlikely to happen, but the NLRB may have another trick up its sleeve - a new partnership with the Federal Trade Commission.

The two agencies outlined their agreement and declared the gig economy to be a key focus for future labor developments. The NLRB and FTC will “closely collaborate by sharing information” and “partnering on investigative efforts within each agency’s authority.” It’s worth noting that previously (in 2017), the FTC took aim at both Uber and Amazon over issues involving gig drivers. Those conflicts ended with the FTC successfully suing both companies for many millions (which ended up in the hands of drivers). One can expect a similar agenda from this new partnership, and gig work companies should prepare themselves for additional federal scrutiny.

Meanwhile in the gig-economy lab of California:

Truckers are not thrilled with the AB5 law signed by Governor Newsom, and they’re asking him to delay enforcement while arguing that the law will destroy jobs amid ongoing inflation woes. These truckers are protesting (and clogging highways) because they are faced with a difficult choice - become regular employees (something that these truckers do not want, given that they prefer independent contractor status) or declare themselves to be small businesses, which requires them to dive into a labyrinth of insurance and licensing requirements.

The California Trucking Association added their voices to the dissent, but the AB5 is not going anywhere anytime soon because the Supreme Court declined to hear a relevant case during their most recent term.

All told, the law places the state’s approximately 70,000 truckers into ambiguous territory, and whenever their status becomes clearer, expect a ripple effect upon the already stressed supply chain. Meanwhile, the NLRB is clearly hoping to permanently modify the definition of “independent contractor” on a federal level, which could lead to more complications in many industries.

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A Majority Of States Now Boost Wages Above The Federal Level

by Kimberly Ricci

This month, minimum wage rose for the lowest-paid workers in over 20 states and the District of Columbia, along with several cities (including Chicago, Los Angeles, and San Francisco). To date, that now equates to 30 states that adopted wages higher than the federal minimum wage, which last rose in 2009 and remains at $7.25.

In airports, however, ongoing labor shortages might pave the way for much higher wages (and benefits) for all workers and contractors. This month, the Good Jobs for Good Airports Act (which is being pushed by the SEIU and other unions) made its way into Congress and aims to raise wages in airports (this would include airport vendors) to at least $15 per hour (with mandatory benefits) throughout the United States.

The kicker here - if the bill passes, those airports, airlines, and vendors who do not comply with wage boosts could lose federal government funding, to the tune of billions.

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Old-Guard, Corrupt Unions Can’t Stand Up Against A U.S. Trade Deal

by Kimberly Ricci

The Trump-era U.S.-Mexico-Canada Trade Agreement (USMCA) replaced the North American Free Trade Agreement (NAFTA) and makes it possible for Mexico’s auto plant workers to boot old guard, corrupt unions. In multiple workplaces already, the new agreement has helped workers democratically choose their own union, one that is not secretly pro-company and actively working to keep wages low.

This month, the U.S. lodged a fifth labor complaint under the new deal while alleging “credible evidence” that an auto factory (owned by the Michigan-based VU Manufacturing company) barred two independent unions from their bid to replace a notoriously corrupt union that works against those who they claim to represent.

It’s a rare instance of teamwork from labor policies from different presidential administrations that actually share a common goal, proving that anything is possible.

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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.

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Contributing editors for this issue: Phillip Wilson, Greg Kittinger, and Kimberly Ricci

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Subject: Labor Relations INK July 2022