Sticky Fingers, What’s Eating Sean O’Brien? : LRI INK

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Subject: Sticky Fingers, What’s Eating Sean O’Brien? : LRI INK

September 26, 2024

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What’s Eating Sean O’Brien? The Teamsters’ Non-Endorsement Stunt

by Kimberly Ricci

By now, you have probably heard about how the International Brotherhood of Teamsters announced that they will not endorse Kamala Harris or Donald Trump in the 2024 presidential race. This pronouncement came following backlash against union chief Sean O’Brien speaking at the RNC and after a “tense meeting” with Democratic nominee Kamala Harris, who is VP to the “most pro-union president in history” and is endorsed by every other major union – including the UAW USW, NEA, and AFL-CIO.

Something doesn’t add up, and we aren’t talking about politics. Instead, it sounds like Sean O’Brien is stomping his feet and holding a grudge.

The “official” union reasoning: Upon releasing their non-endorsement news, the Teamsters cited an internal poll of 21,000 rank-and-file members, nearly 60% of whom supported endorsing Trump. It should be noted that some union board members reportedly pushed back against the results of an unscientific phone poll.

O’Brien stood firm and called the results “a wake-up call” for Democrats.

A wake-up call for what, exactly? We’ll get to that in a moment.

Rep. Alexandria Ocasio-Cortez reacted to the non-endorsement by blasting O'Brien over his habit of turning to Democrats for help, including Biden’s recent bailout of the union’s pension fund. That rescue added up to $36 billion, the largest private pension bailout in history.

About that grudge: If it feels like O’Brien chose an endorsement stance and used the poll to justify the decision, that seems entirely possible. Just take a look at part of O’Brien’s official statement: “We sought commitments from both Trump and Harris not to interfere in critical union campaigns or core Teamsters industries – and to honor our members’ right to strike – but were unable to secure those pledges.”

He makes it sound like he was willing to endorse the candidate who agreed to never interfere with a Teamsters strike without regard for consequences.

Also, consider O’Brien’s recent tantrum against the Canada Industrial Relations Board for shutting down a Teamsters rail strike to prevent economic catastrophe. O’Brien hasn’t forgotten how, two years ago, Biden blocked a strike from multiple unions representing U.S. rail workers. It’s not a stretch to conclude that O’Brien wants a presidential green light to knee-cap employers while causing collateral damage to the economy.

Neither Harris nor Trump told O’Brien that they would allow him to cripple the transportation industry, which would cause a domino effect into other industries and also hurt Teamsters members, and a union president is pouting.

A pattern is becoming clear: O’Brien keeps telling union members who he is. He declined to accept responsibility for UPS’ layoffs in the wake of the new Teamsters contract which drastically cranked up labor costs. O’Brien even power walked away when a member asked questions on the topic.

For this non-endorsement stunt, O’Brien also drew a public rebuke from his predecessor, James P. Hoffa, who called this a “critical error and, frankly, a failure of leadership by Sean O’Brien.” This perhaps suggests a suspicion that O’Brien encouraged the poll’s results by addressing the RNC.

Teamsters locals push back: Many local chapters and the National Black Caucus, representing over one million of the Teamsters’ members, disregarded O’Brien’s decision and endorsed Harris anyway. Of course, the impact of non-endorsement on the election might not matter at all, yet it’s possible that backlash against O’Brien will ultimately count for more with his own members.

Blog Post

Union Corruption Update: Fresh Examples of Labor Leader Misconduct

by Michael VanDervort

It’s been a busy few months filled with the usual allegations and convictions involving union officials—acts that continue to highlight serious concerns about the integrity of the organizations entrusted with representing employees. Let's look at some of the union leader misconduct and corruption since our last “sticky fingers” update.

1199 SEIU’s Medicaid Maneuvering: New York’s powerful 1199 SEIU is at the center of a controversial scheme to benefit from Governor Kathy Hochul’s proposed changes to the state’s $9 billion Medicaid program. The Consumer Directed Personal Assistance Program (CDPAP), which allows New Yorkers to be paid to care for their loved ones, is being restructured. 1199 SEIU has reportedly pressured bidders for the new state contract to unionize 200,000 CDPAP homecare workers and increase their wages, illustrating the union’s aggressive tactics to grow its membership at the expense of taxpayers.

UAW’s Retaliation Against Its Own Staff: In a striking example of hypocrisy, the United Auto Workers (UAW) is facing accusations from its own internal union, UAW Staff United, of retaliatory behavior and bad-faith bargaining. UAW Staff United filed unfair labor practice charges after UAW leadership allegedly fired organizer Alex Chan for her involvement in the staff union. While UAW President Shawn Fain ran on a reform platform, the accusations against him and his administration indicate that entrenched, problematic behaviors may continue even under so-called reform leadership.

Robert Lucey’s Forged Checks: In Pittsfield, Massachusetts, former Treasurer of NALC Branch 286, Robert Lucey, pleaded guilty to forgery and larceny charges after embezzling $7,961 from the union. Lucey was sentenced to probation and ordered to pay restitution.

Randal Dunlap’s $129,000 Theft: Randal Dunlap, former Treasurer of NALC Branch 1018 in Kansas, was sentenced to 13 months in prison for embezzling $129,000 in union funds.

Muriel Newman’s Wire Fraud: Former AFGE Local 2779 President Muriel Newman was sentenced to three years probation, including a year of home detention, after being convicted of wire fraud and falsifying records. She defrauded the union of $28,415.

Dilanjan Miller Charged for Bank Fraud: In Michigan, former USW Local 2513 President Dilanjan Miller was charged with bank fraud after allegedly embezzling $58,696 from the union.

Blog Post

The Return-To-Office Push And Pull: Considerations For Employers

by Kimberly Ricci

The last time we checked in on the Great Return-To-Office Experiment, the subject was causing varied degrees of resistance. Several large employers launched policies for full-time workers to “badge in” 3 days per week, but currently, few mega-employers have fully shifted into a 5-day RTO mandate for office positions. Also, there’s been a trend toward workers viewing hardline mandates as “soft layoffs,” which is not fantastic for morale. In cities where large companies headquarters, commute times add up, and workers see themselves as losing hours per day in the RTO movement.

Well, RTO might be about to receive a big push. Several major companies, including Disney, Starbucks, JPMorgan, and Zoom are signaling that it’s time to roll back hybrid work arrangements for full-time workers. To that end, incoming Starbucks CEO Brian Niccol gave a speech on the “power in having everybody together,” although he stopped short of a 5-day mandate while adding, “We’re all adults here.”

Amazon CEO Andy Jassy also recently penned a memo requiring a full return to in-person work in Jan. 2025. And much further along the spectrum, some Biglaw firms plan to enforce 5-day RTO mandates by hitting associates and partners in the pocketbook with financial penalties, including withholding bonuses and partner draws, which may not sit well.

With any shift in workplace conditions, employers should be prepared for what could come next:

Don’t cheerlead: Morning Brew points towards the importance of maintaining empathy, not cheerleading, for those workers who feel that full-time RTO will cause “both tangible and intangible losses” to their quality of life. They will experience less leisure time, and face increased costs for commuting, caregiving, and so on. Workers might feel that their situations have grown harder, and right now, they probably won’t listen too hard to a speech about “innovation” or “collaboration.” So, be ready to acknowledge how mandates impact their lives daily, listen, and take the feedback seriously.
Guard against backlash in advance: Attorney Cary Burke, in a LinkedIn post, argues that a strict 5-day RTO for lawyers is a surefire way to drive away top revenue generators and drive workers to “engage in protected concerted activities” because under the National Labor Relations Act (NLRA), “Work location and hours are essential terms and conditions.” And although employers hold more RTO cards in times of inflation and high demand, do they really want to encourage frustration that could lead to organizing?
Understand the “flight risks”: Workers who could decide to look elsewhere after a strict RTO mandate might include top performers, Millennials, and women. Consider whether the potential losses in morale and talent are worth the risk that a one-size-fits-all mandate presents. Flexible work arrangements are often worth more than a raise to workers; perks like travel-time compensation or meal vouchers could go a long way. Creativity in building solutions and involving workers in the process are essential here. This also brings us back to a universal truth: workers want to know that their employers are listening to their concerns. As always, if employers do not listen, unions will always be happy to step in and fill that vacuum.

Blog Post

Links You May Have Missed:

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States are pushing back with anti-labor laws as union popularity grows, policy experts say

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The Failed UAW Contract With Stellantis

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Amazon Is Spending $2 Billion To Boost Drivers' Delivery Pay And Quell Driver Union Drive

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Contributing editors for this issue: Michael VanDervort and Kimberly Ricci.

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Subject: Sticky Fingers, What’s Eating Sean O’Brien? : LRI INK