Subject: Same Old UAW: Is This The Beginning Of The End For Shawn Fain? : LRI INK

July 11, 2024

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Same Old UAW: Is This The Beginning Of The End For Shawn Fain?

by Kimberly Ricci

It sure looks like Shawn Fain has more in common with past UAW presidents than he would ever admit. The trash-can-waving head honcho ran on a “reformer” platform while vowing to lead his union away from a deeply entrenched legacy of corruption that landed over a dozen leading UAW officials in prison only a few years ago. 

 

Those offenders included ex-international UAW Presidents Gary Jones and Dennis Williams, who received 28 and 21 months behind bars for conspiring to embezzle union funds while also committing tax evasion, and ex-Financial Secretary-Treasurer of Local 412 Timothy Edmunds, who received 57 months in prison for money laundering and lifting over $2 million from UAW coffers. This wide-reaching scandal also led to a 2020 federal settlement that included independent watchdog Neil Barofsky being tasked with monitoring the UAW for further illegal shenanigans. 

 

As we discussed in June, Fain – who promised to clean up his union’s reputation while practicing full transparency – has already run afoul of Barofsky after only a year on the job. Is his downfall already here?

 

To back up a moment, anybody who feels even slightly skeptical about unions could have seen this coming. After all, Fain won the union’s first direct officer election by making a mockery of democracy with shady antics that appeared to include intense voter suppression. Barofsky is now lodging potentially damning accusations against Fain, including:

  • That UAW officials allegedly refused to hand over documents while “delaying and obstructing” an investigation of Fain and other officers.

  • Fain’s recent decision to seize oversight responsibilities of the union’s Stellantis Department from VP Rich Boyer looked like a red flag for good reason. This wasn’t Fain righting the ship after union members felt betrayed over Stellantis layoffs following Big Three contract negotiations. Instead, Fain was allegedly retaliating against Boyer for “refusing to divert benefits to his fiancée,” who is a UAW-Chrysler National Training Center financial analyst, and her sister.

  • Barofsky also flags Fain for stripping power from Secretary-Treasurer Margaret Mock, who claims that she was retaliated against for refusing to authorize ambiguous expenditure requests “at the request of and/or for the benefit of those in the President’s Office.”

  • Barofsky filed a motion asking a federal judge to compel the UAW to turn in the requested documents pertaining to “misuse of funds” and other associated crimes. The watchdog also reportedly blamed the UAW’s refusal to cooperate for preventing him from  “do[ing] his job of investigating and addressing allegations of corruption and criminal misconduct by the union’s senior-most leaders.” These documents include emails and allegedly contain references to threats, criminal acts, and lavish spending of union dues. 

 Fain, meanwhile, insists that Barofsky will only discover “a UAW leadership committed to serving the membership and running a democratic union." 

 

The UAW cookie jar remains tempting to officials, and this mess does not bode well for a “reformer” president accused of what he campaigned against.

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Unions Go To The Movies: The Intersection Of Food Service And Experiential Retail

by Kimberly Ricci

We previously highlighted union activity at the intersection of retail and healthcare, where pharmacists are being organized by Machinists. Those pharmacy workers claimed to need a union due to pandemic-fueled labor shortages and juggling a wide array of healthcare duties. Now, movie theater workers in scattered locations cite similar reasons and a different current event for their desire to unionize. 

 

The so-called “Barbenheimer” phenomenon, a 2023 double feature release popularized by social media, saw opening weekend U.S. theatergoers plunk down over $235 million in ticket sales. This phenomenon, which involved the simultaneous release of two highly anticipated movies, led to a significant increase in customer traffic and operational challenges for the theaters. It might sound odd for Barbie and Oppenheimer to be a source of workplace controversy. Still, theater workers claim that the twin releases added chaos to a strained environment and felt their concerns were not adequately addressed. Naturally, unions swooped in and claimed to have solutions. 

 

Like pharmacies, movie theaters exist at a crossroads of industries. Their job duties encompass box office, concessions, and operational duties, and they serve as front-line workers for customer complaints. The situation becomes more complicated in theaters with seat-side service for food and cocktails, adding to the “experiential retail” nature of moviegoing.

 

CWA and UAW are currently organizing in these dine-in theaters, where organizing activity was already bubbling up with earlier movie-theater union victories at Massachusetts’ independent Amherst Cinema and a few NYC-based non-profit theaters in 2023. This year, workers at long-lived NYC independent theater Cinema Village followed suit by filing for a vote to join UAW Local 2179 – that local has also recruited at dine-in theaters such as Brooklyn’s Nitehawk Cinema and multiple NYC Alamo Drafthouse locations.

 

In March, Brooklyn’s Nitehawk Cinema workers cited Barbenhemier as “a tipping point” that added to their frustrations over safety issues and low pay. They called the unofficial double-feature event a “madhouse” made worse by failing air conditioning and “floor sweat, " making stair climbing dangerous for those serving seat-side food. Nearby unionized Alamo Drafthouse workers described Barbenheimer as a phenomenon that “really pushed us to the edge” and took “a mental toll.”

 

Additionally, the Alamo Drafthouse situation is worth monitoring for its rapid developments. Thus far, UAW and CWA have unionized locations in California, New York, Colorado, and Texas, including in Austin, where the company is headquartered. The Alamo Collective Organizing Committee-CWA offshoot, a branch of the CWA that specifically focuses on organizing workers in the entertainment industry, is very active at Colorado Alamo locations, where the union could soon add another 87 members pending a vote in Littleton. 

 

A potential wrinkle: In June, Sony Pictures purchased Alamo Drafthouse theaters, the first time in decades that a major studio will have owned a theater chain. This acquisition could potentially alter the dynamics of the union drive as it introduces a new player with its own set of policies and practices. We don’t know how Sony plans to reorganize or alter the working environment or possibly even reopen shuttered theaters. 


Alamo Drafthouse management, for its part, is urging organizing workers to give the company another chance to make things right before future union votes, but the momentum has begun. Dine-in movie theaters present a unique set of challenges for employers, which is a strong reminder to promptly address workplace concerns.

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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: 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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