Subject: The Coasts Are Not Clear: NY, CA, And The Dreaded ‘Card Check’: LRI INK

July 14, 2023

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The Coasts Are Not Clear: NY, CA, And The Dreaded ‘Card Check’

by Kimberly Ricci

The East and West Coast labor labs are cooking again, and unions hope to gorge themselves on the results. 


The California-based United Farm Workers are plotting such a feast, given that the now-ailing union once boasted 60,000 members nationally and then fell to a mere 6,000. In New York, however, the union is celebrating the unionization of five farms, where the UFW recently scooped up 500 new members. 


The union can thank a fairly new New York law, the Farm Laborers Fair Labor Practices Act, for these results. The law makes farm-worker organizing much easier by allowing unionization via the ”card-check” process. Notably, farm workers are excluded under the NLRA, so this New York law could be a game changer in more ways than one.


The effect is spreading, too. Not only has the UFW scooped up five farms (including orchards), but two other unions are seeing their own New York successes. The United Food and Commercial Workers and Retail Wholesale and Department Store Union recently added 125 members from vineyards and a dairy farm. 


The UFW isn’t done with their New York plans, but California is also back in their sights. A new Golden State law similarly brings card checking to farm workers, and the UFW comms director went on record to credit New York for providing “a good preview” of what the union plans for California.


More California updates are coming in fast:


  • The state supreme court will consider Proposition 22which allows gig companies to treat drivers as independent contractors. Prop 22 answered Assembly Bill 5, which required app-based workers to be treated as employees. The eventual legal outcome of these warring bills could affect whether Uber, Instacart, and more can feasibly continue to do business in California.

  • Up to 800,000 fast-food franchisees are considering their future in California if the so-called “FAST Act” wins voters' approval in 2024 after a referendum prevented the law from immediately going into effect. Not only would FAST hike the fast-food minimum wage to $22 for franchise workers, but the law would create an unelected board through which workers could bargain as though they were unionized. The financial fallout could be devastating.

  • The L.A. hospitality industry saw thousands of workers go on UNITE HERE strikes at 60 hotels over the Fourth of July holiday weekend. Hotel chains are also fighting a possible 2024 ballot initiative to tack a 7% fee onto all guest rooms to build a housing assistance fund for hospitality workers. The union forecasts future strikes at the original 60 hotels and 41 more.


Doing business in California isn’t easy, but the public sector isn’t smooth sailing either. SEIU members went on a silent march in search of 30% pay raises for state employees amid a multi-billion dollar budget shortfall. 

Trendspotting: A Roundup of Recent Unionization Efforts

by Kimberly Ricci

Lots going on related to various labor relations efforts. Here is what we've been following lately.


Renowned architecture firm Snøhetta recently received good news when workers voted against joining Architectural Workers United. However, the union has vowed to circle back, given that the vote was relatively close (35-29), and this would have been a pivotal union victory (only a second win) within this industry.


Trader Joe’s could file a trademark infringement lawsuit against Trader Joes United over the merch sales bearing the union’s logo. The company wants an injunction to halt the use of the logo and “all profits” from the merch sales. Thus far, only 4 out of 500 Trader Joe’s stores have unionized, with no contract materializing yet.


The Sierra Club locked horns with the Progressive Workers Union during restructuring efforts resulting from a $40 million budget deficit. However, the environmental group’s planned layoffs and consolidations cannot happen without negotiating these changes through the union’s contract. 


The Venetian and Palazzo hotels in Las Vegas ended a decades-long impasse against a UNITE HERE local, with workers now allowed to explore organizing.

Wells Fargo is fending off what could be a landmark organizing drive within an industry where fewer than 1% of workers are unionized.


American Dream Mall workers rallied in New Jersey to protest the firing of two union organizers among three dozen employees.


The Los Angeles Dodgers Stadium averted a strike from 450 SEIU-represented game-day workers, some of whom will receive up to 50% raises over five years.

Additionally, the NLRB’s aggressive anti-Starbucks tactics continue with a trio of updates:


  • Starbucks has been ordered to reopen a shuttered cafe in Ithaca, NY, after the board determined that the company violated the NLRA by closing the store “in large part to discourage unionization efforts in Ithaca and elsewhere.” 

  • Starbucks’ hometown stomping grounds of Seattle is the focus of an NLRB lawsuit to force the rehiring of 33 workers. This decision arrived after the company reorganized three downtown cafes into a combined Heritage District and allegedly required 73 union activists to reapply with the company. The board put Starbucks on the hookfor back pay and benefits for these fired workers.

  • The NLRB also ruled that Starbucks illegally prevented subpoenaed Seattle baristas from testifying to the board. According to the NLRB, Starbucks threatened to discipline workers if they testified without arranging for a coworker to cover their missed shifts. The board also ruled that Starbucks illegally prevented workers from using break time to pass out union buttons.


Starbucks Workers United currently boasts 330+ unionized cafes (out of 9,000+ within the U.S.), with new petitionsoccasionally joining the fray. It’s a slower drip but one clearly aided by Biden’s board.

Navigating the Changing Labor Landscape: Unionization in Las Vegas

by Michael VanDervort

In the dynamic world of labor relations, staying ahead of the curve is crucial. Recently, Las Vegas, a city known for its vibrant nightlife and gaming industry, has seen a significant shift in its labor landscape. The Venetian and Palazzo resorts, two of the last non-union properties on the Strip, have entered into a "card check neutrality" agreement, opening the door to potential unionization.


This development marks a significant change from the past when Sheldon Adelson, the late owner of the properties, adopted a robust anti-union stance, investing heavily in litigation and media campaigns to maintain a non-union environment. The sale of the properties to Apollo Global Management in 2022 has ushered in a new era, with the new owners choosing to remain neutral as workers discuss potential union representation.


The announcement of the neutrality deal was described as “...a jaw-dropping moment…” for many longtime gaming industry observers that signals the end of an era on the Las Vegas Strip. 


While labor supporters see this development as a victory for the Culinary Union, Bartenders Local 165, Operating Engineers Local 501, and Teamsters Local 986, it should remind management teams of the importance of proactive labor relations strategies. In this case, the decades-long persistence of the unions underscores the need for effective communication and engagement with employees to understand their concerns and address them proactively.


Unionization efforts often stem from employee dissatisfaction with working conditions, wages, and schedules. By addressing these issues proactively, companies can improve employee satisfaction and potentially reduce the appeal of unionization.


In another development, a Starbucks location in North Las Vegas has voted to unionize, becoming the third Starbucks location in Nevada to do so. This is part of a broader trend of increasing unionization across the country, with more than 8,000 Starbucks baristas organizing as part of a nationwide campaign and over 330 stores successfully unionizing since late 2021.


The Culinary Union, which is separate from Starbucks Workers United, also represents Starbucks workers at Harry Reid International Airport and several casino resorts. 


As we move forward, it will be interesting to see how these developments shape the labor landscape in Las Vegas and beyond.

The Reputational Harm Of A Strike: Even Worse Than Short-Term Effects

by Kimberly Ricci

Years of so-called “Striketober” headlines proved greatly exaggerated by media coverage. Yet a simmering summer of labor tensions could brew high-profile strikes.


Unions are greasing the press wheels, too. Upcoming UAW contract negotiations with the Detroit Big Three already dominate the news. At the same time, the Teamsters have threatened a conflict-filled summer and launched a #HotUnionSummer hashtag for extra flavor. 


Healthcare’s ongoing plague of strikes shows no signs of losing momentum. Recently, this led to some particularly messy fallout at a Texas hospital, where failed contract negotiations led to a one-day nurses’ strike. This walkout didn’t end as planned when they returned to work and learned of a further three-day lockout period. 


Cue the media coverage of hospital security guards telling nurses that they were not allowed to come back to work yet, and you can see where warding off this strike would have been better for both employer and workers. The hospital was in an unwinnable situation because it couldn’t leave gaps in necessary patient care. That left little choice but to hire temp nurses, who must be contracted for several consecutive days, so striking nurses lost out on those wages.


Only the union benefitted (by harming the hospital’s reputation), but that might not have been the case if more open communication between employer and workers could have warded off a strike. What can an employer do to avoid such a media firestorm?


Ideally, don’t wait for that moment to open the lines of communication: This is, of course, much easier said than done, but it rings true. How one responds to strife is a question easier answered before the situation enters crisis mode. A union already has the advantage if one waits until the media calls. 


Well-crafted responses to the press can also make the difference between losing long-term business and experiencing an unpleasant hiccup. Yet many headaches could be avoided by proactively handling internal strife before conflict erupts.


Effective internal communication can mitigate the need for forward-facing PR: The majority of worker concerns truly can be resolved through direct and open communication. From a worker’s POV, feeling their concerns are valued by leadership is priceless. If a strike is already in motion, one can also bet that internal communication shall be scrutinized during and after the fact.


Additionally, the case of Starbucks has been a canary in a coal mine. The coffeehouse giant still endures a widespread Workers United drive and the NLRB’s strong-arm tactics. It’s also not hard to conclude that ex-CEO Howard Schultz’s responses while on the Senate hot seat did not win over baristas who already felt unheard by their employer. 


Incoming CEO Laxman Narasimhan was greeted by strikes at 100 cafes. He responded by committing to open communication and working regular barista shifts alongside front liners. His work is cut out for him, but hopefully, he can shift the internal tide.

Links

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Weekly Links 


Toyota Dealer Illegally Spurned Former Strikers, NLRB Says 

Link


Provider Hit With Back Pay And Hiring Demands Even After Judge Dismisses Parts Of Union Case

Link


ChatGPT By The Bedside? University Of Minnesota Group To Explore AI In Nursing

Link


Why Technology Is At The Heart Of The WGA Strike

Link


Don’t Overlook The Heart Of Your Company

Link


UPS Customers Weigh Backup Plans As Threatened Strike Date Approaches

Link


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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.


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: Phillip Wilson, 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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