Subject: Sticky Fingers: Steel, Skies, And The Stubborn Shawn Fain: LRI INK

January 23, 2025

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Sticky Fingers: Steel, Skies, And The Stubborn Shawn Fain

by Kimberly Ricci

Our latest union corruption roundup reveals that 2025 is stickier than ever:


Association Of Professional Flight Attendants (APFA) President Julie Hedrick has been accused of embezzlement. Allegedly, she used union dues to pay unauthorized rent and other personal expenditures, all of which add up to what members call a “willful violation” of the union’s constitution. Sadly, this is not unusual behavior by a union officer, but what makes this case unique is how APFA top brass now wants to tweak the union’s constitution on rules related to spending. At the same time, officers seek to raise current dues and put automatic increases into place. APFA members have at least 3 reasons to lament belonging to a union.


The United Steelworkers Workers Union (USWU) also faces allegations of misbehavior. U.S. Steel accused the union of corruption after outgoing President Biden blocked the company’s $15 billion sale to Japan’s Nippon Steel Corporation. USWU President David McCall lobbied for that result, called the sale null and void, and joined Biden in claiming that selling to Nippon would jeopardize national security.


What is really happening? The USWU is being accused of pressuring Biden to jilt Nippon in favor of another buyer, Ohio-based Cleveland-Cliffs. And sure, critics of both buyers are concerned about layoffs and jobs moving out of Pennsylvania, but the USWU’s opposition against Nippon is largely due to the company’s plans to reconsolidate operations in the Right To Work state of Arkansas. U.S. Steel has now filed two federal lawsuits over the blocked Nippon sale, so stay tuned.


Now for the latest antics from UAW President Shawn Fain, who somehow always manages to make an appearance in our corruption discussions.


This month, federal watchdog Neil Barofsky revealed that the UAW finally handed over hundreds of documents for his investigation into whether Fain is continuing his union’s legacy of corruption. Barofsky has further stoked flames of curiosity by alluding to “new claims of misconduct” by union officers, and the surrendered documents are said to include Fain’s text messages. Exactly why the union fought for six months to protect those messages remains to be seen, but the UAW dragged its feet until this month, when a judge reiterated that Barofsky retains “broad authority to investigate complaints of fraud, corruption, illegal behavior, dishonesty, and unethical practices by the UAW” and “may demand that the Union produce documents and other materials that may inform his investigations.”


Currently, it’s not clear whether Barofsky’s new claims have anything to do with existing allegations of “misuse of funds” and Fain’s stripping of power from the UAW’s secretary-treasurer for denying his expenditure requests. He is also accused of seizing oversight of the union’s Stellantis Department from a former VP for “refusing to divert benefits to his fiancée.” 


Clearly, Fain is not having a fantastic year so far, not only due to that court decision but also in newly declaring that the UAW is “ready to work with Trump.” If only he would cooperate with his federal watchdog, too.

Trump’s Labor-Focused Executive Orders Could Drive More Union Activity

by Kimberly Ricci

Newly inaugurated President Trump promptly signed dozens of executive orders. As expected, these documents include labor policies intending to be friendlier toward businesses in the short term. Yet the larger picture could stir worker unease, leading to third-party intervention.


Two of Trump’s orders carry the  potential to influence the private sector on labor issues that will surely encourage union interference:


A Sweeping Revocation Of The Equal Employment Opportunity Order: Trump revoked the EEO executive order 11246, signed by Lyndon B. Johnson in 1965, in favor of a “merit-based” plan within the federal government. This move dismantles federal diversity, equity, and inclusion programs (DEI) favored by Joe Biden and which Trump characterized as encouraging discrimination against non-minority workers. Current federal DEI staffers have been placed on paid leave and will soon be laid off.


This Trump executive order goes even further in Sec. 4, in which the president calls upon agency heads to work with the Justice Department in pinpointing private sector companies for “potential civil compliance investigations” if they engage in DEI hiring or training practices that go against Trump’s new guidelines.


A Wide-Reaching Return-To-Office Policy: This succinct executive order calls for agencies to “terminate remote work” in favor of full-time “in-person work” by federal employees. This objective coincides with an ongoing push by several large corporations efforts to get employees to return to the office, rolling back hybrid schedules in favor of 5-day RTO, a move that critics view as “soft layoffs” that encourage workers to resign. 


Already in the private sector, the Great RTO Experiment has been met with worker anxiety, which can propel them into “protected concerted activities” under the NLRA concerning essential terms and conditions of employment.

So, it’s no surprise Big Labor was ready for a Trump RTO order and turned to the courts. The National Treasury Employees Union, representing IRS and DHS workers, already filed a lawsuit over Trump’s removal of federal job protections. The National Federation Of Federal Employees also predicted a less efficient government due to the RTO mandate. 


More food for thought: the American Federation of Government Employees recently won remote work provisions in their union contract, which led to hybrid schedules for the Social Security Administration employees. The Alphabet Workers Union achieved the same result, raising questions about Google’s federal contractor status and compliance with the RTO order and how the company, workers, and the union will respond.


Most assuredly, unions will ramp up RTO-based organizing after Trump’s order suggested that it might reach into and influence private companies. More on this next week. 


Conclusion: These are sensitive topics that put many workers on edge. This underscores the need for companies to balance workers’ worries and the need for transparency regarding how Trump’s orders could affect their businesses. Legal challenges to the orders will also persist, and employers will do well to tread carefully. After all, if workers don’t feel as though their employers are listening, unions will be waiting in the wings.

Stories You May Have Missed:


General Counsel Abruzzo Issues Memo on Harmonizing the NLRA and EEO Laws

Link


NLRB General Counsel Issues Updated Representation Case Guidance

Link


Trump Taps GOP Labor Board Member Kaplan as New Agency Chair

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I'm president of the UAW. We're ready to work with Trump.

Link


Teamsters plan strike at Costco on February 1

Link


About Labor Relations INK

Labor Relations INK is published weekly and is edited by LRI Consulting Services, 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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