Union Presidents Prosper While Members Face Job Losses: LRI INK

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Subject: Union Presidents Prosper While Members Face Job Losses: LRI INK

November 14, 2024

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Union Presidents Prosper While Members Face Job Losses

by Kimberly Ricci

As union leaders celebrate what they tout as monumental wins, their members pay the price—often in lost jobs. Meanwhile, Shawn Fain and Sean O’Brien continue to draw hefty salaries, seemingly untouched by the financial fallout that ripples through their membership. Are these leaders aware of the consequences, or are they entrenched in a fantasy world where job losses are a distant afterthought?

Since we are about to dive into UAW and Teamsters members’ job losses, it’s first worth looking at how those union presidents’ wallets are faring.

For example, Shawn Fain’s first full year as chief led to him clearing at least $228,000, with Teamsters president Sean O’Brien raking in $250,000. So it clearly pays to be the frontman of an international union, but how are their members doing after the high-profile contract “wins” of 2023?

The UPS/Teamsters agreement reportedly led to at least 12,000 job losses as the company restructured to account for increased labor costs. Sean O’Brien then was caught on camera refusing to answer questions about layoffs from a disappointed worker, as though he’d prefer to pretend nothing was amiss. In contrast, Shawn Fain openly engages with foes and defends his Fantasy Land in an outwardly combative and profane way.

We’ll get to that second detail soon, and it’s a doozy.

The Stellantis situation: The Big Three deals included Stellantis implementing across-the-board union member raises of at least 25%. In order to afford those raises under the best of circumstances, most companies would need to trim costs. Then Stellantis’ 2024 quarterly results pointed towards more trouble amid crumbling sales due to inflation. In the first half of this year, the auto manufacturer’s net revenues fell 14% with net profit cratering 48% on a year-to-year comparison. The issue didn’t improve in the most recent quarter with net revenues being down 27%.

To put things mildly, Stellantis has no choice but to try and right their ship by substantially cutting costs including labor. Last week, Stellantis laid off 400 people at a Detroit auto parts plant and 1,100 more workers at a Toledo Jeep plant. This followed August’s loss of 2,450 jobs at the Warren, Michigan plant.

Fain will not accept reality: The UAW chief is brushing past Stellantis’ financial problems while claiming that the company is “rolling in the dough.” He alleged company mismanagement and expressed an intent to “cripple” Stellantis with a widespread strike. He also wants to force the company into reopening the Belvidere plant before the company can afford to do so.

Not that these union bosses’ behavior is too surprising. They are pros at deflecting layoff blame, so don’t expect them to accept any responsibility for intentionally stressing companies’ bottom lines.

About that profanity: The UAW website encourages members to visit a site called Sh*tcanCarlos.com in reference to Stellantis CEO Carlos Tavares. Is Fain attempting to one-up his own infamous trashcan speech? Perhaps, but Tavares has already announced his 2026 retirement, when he can hopefully stop thinking about union presidents’ antics.

Unfortunately, Fain will probably keep making matters worse for UAW members, but you’d better believe he’ll keep drawing his own full salary.

Blog Post

Approachability Minute: Motivating High Achievers on Your Team

by Michael VanDervort

Note: We posted this video last week, but had a glitch that caused it to end early. Here's a full view.

In this week’s Approachability Minute, Phil Wilson examines one of the core motivators we’ve been discussing: the need for achievement. If you’ve got team members who are all about making progress, developing their skills, and getting recognized for their efforts, this episode is for you.

Phil shares how to engage these high achievers by focusing on their growth, discussing their current projects, and offering mentorship opportunities.

Tune in to learn how to tap into this drive and keep your team on track for success!

Watch the Video

A Cannabis Check-In: Union Activity Rolling Across The U.S.

by Kimberly Ricci

As we recently covered, the second Trump Administration will likely cause major shifts at the NLRB and ultimately roll back some Biden-era rules to make room for employer-friendly policies. How those changes could shift the unusual spot already occupied by the cannabis industry – with its complex network of growers, producers, retail workers, and delivery drivers – is anybody’s guess.

Then again, this industry is accustomed to sitting in a precarious place. Cannabis facilities are a Cemex testing ground, and these employers pay an almost prohibitive amount of taxes within a trade that is still federally illegal. To confuse matters even more, 50 states have 50 different ways of handling the industry. Some state policies will also shift following Election Day, which is an excellent place to start this roundup.

Measure 119 was passed in Oregon, making it easier for cannabis workers to unionize. This bill, known as the United for Cannabis Workers Act, is the product of extensive lobbying efforts by the UFCW and will require employers to adopt a “labor peace agreement” (LPA) with a union to qualify for state licensing. Oregon now joins a growing number of states requiring such LPAs from cannabis employers.

California: The UFCW also lobbied for a bill that, beginning on Jan. 1, 2025, will allow ”Amsterdam-style cannabis cafes” to exist in retail shops where clientele can now order food and drinks while smoking up. Public health advocates, including the American Cancer Society, are decrying the added second-hand smoke health risks that this will present for workers. However, the union appears to be ignoring that subject.

Missouri: The NLRB will soon rule on a case involving BeLeaf Medical’s post-harvest workers who process and package cannabis products, ship them to dispensaries, and work in lab settings. At issue is the company’s goal to classify their employees as agricultural workers, who are generally excluded under the NLRA and, therefore, cannot unionize. These workers, however, counter that they are not involved with harvesting and consider themselves akin to unionized tobacco workers who ferment leaves.

BeLeaf disagrees that its production and packaging process is similar to that of the tobacco industry. This is a complicated saga, which we previously dug into here. This case could also transform the entire cannabis industry. Thus far, an NLRB regional director has ruled twice against the company, with BeLeaf awaiting the “final” ruling.

In organizing news, the Teamsters claim two victories at Zen Leaf Cannabis retail dispensaries in Illinois. In Michigan, the union won its first Detroit-area cannabis operation at a PharmaCann production facility. In Maryland, Apothecarium Dispensary workers joined the UFCW, reportedly bringing this union’s cannabis industry member count to 15,000.

Not everything is groovy for these workers, however. In New Jersey, the National Right To Work Foundation showcases Green Thumb Industries workers who filed a decertification petition against the UFCW over their claimed “card check” victory for 275 members. A worker representative accused the union of coercion and added, “We simply seek a secret ballot election that was denied to us.”

Blog Post

Breaking News: NLRB Overrules Decades-Old Precedent on Captive-Audience Meetings

by Michael VanDervort

As of November 2024, the National Labor Relations Board (NLRB) comprises four members and one vacant seat, serving staggered five-year terms. The current composition is as follows:

Current Composition of the NLRB:

Lauren McFerran (Chair): Appointed in December 2014, reappointed in 2020, and designated Chair in January 2021. Her current term is set to expire on December 16, 2024.
Marvin E. Kaplan: Serving a term expiring on August 22, 2025.
David M. Prouty: Serving a term expiring on August 26, 2026.
Gwynne A. Wilcox: Serving a term expiring on August 27, 2028.
Vacant Seat: Previously held by John F. Ring, whose term expired in December 2022.

Recent Nominations:

To address the impending vacancy with Chair McFerran's term nearing its end, President Biden nominated her for a third term on May 23, 2024. Simultaneously, he nominated Joshua L. Ditelberg, a partner at Seyfarth Shaw LLP, to fill the vacant seat.

Senate Proceedings:

Both nominations were referred to the Senate Committee on Health, Education, Labor, and Pensions. As of August 1, 2024, McFerran's nomination was placed on the Senate Executive Calendar (Calendar No. 783), pending further action. The Senate has yet to confirm either nomination.

Implications for Labor Relations:

The composition of the NLRB significantly influences labor policy and the adjudication of labor disputes. A full Board ensures balanced decision-making and timely case resolutions. The pending nominations, if confirmed, would restore the NLRB to its full complement of five members, potentially impacting the direction of labor relations in the United States.

The pending nominations to the National Labor Relations Board (NLRB) carry significant potential implications for labor relations in the United States:

1. Extended Democratic Majority: If Chair Lauren McFerran is confirmed for a third term, the NLRB will maintain a Democratic majority until at least August 2026, when Member David Prouty's term expires. This extended majority could lead to the continuation and expansion of pro-labor policies and decisions.

2. Policy Continuity and Expansion: Under McFerran's leadership, the NLRB has issued rulings favoring union organizing and worker rights. Her reappointment could reinforce and further develop these policies, potentially affecting employer-employee dynamics.

3. Impact of Judicial Scrutiny: Recent Supreme Court decisions, such as Loper Bright Enterprises v. Raimondo, have altered the landscape of judicial deference to federal agencies. This shift may subject NLRB decisions to increased judicial scrutiny, potentially challenging the Board's authority and interpretations of labor law.

Impact of a Trump Election Win

If former President Donald Trump wins the upcoming election, the National Labor Relations Board (NLRB) will likely experience significant changes and a reversal in direction. A Trump administration could appoint new members as current terms expire, potentially shifting the Board to a Republican majority and reversing pro-labor policies implemented under the Biden administration. This shift may lead to a more challenging union organizing environment and alter the power balance between employers and employees, affecting workplace conditions and labor relations nationwide.

If former President Donald Trump is re-elected, he can remove the current NLRB General Counsel, Jennifer Abruzzo, at his discretion. The National Labor Relations Act does not provide tenure protections for the General Counsel, allowing the President to make such a decision. This precedent was established when President Biden removed former General Counsel Peter Robb upon taking office. Therefore, it is plausible that a re-elected President Trump could choose to remove Abruzzo early in his term.

Blog Post

Stories You May Have Missed:

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NLRB files complaint against post-acute care network

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What the UAW, the SEIU, and other major labor unions make of Trump's win

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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.

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: 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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Subject: Union Presidents Prosper While Members Face Job Losses: LRI INK