Subject: What's At Stake With The Looming Longshoreman Strike: LRI INK

August 15, 2024

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Employee and Labor Relations Team Survey - Best Practice Research

by Michael VanDervort

LRI and Spring International are conducting a confidential survey to help build out a ‘best practice framework’ for labor and employee relations teams in terms of size, role, skills, and structure. Please help us out by completing this survey.


This will form the basis of a maturity model of effective employee and labor relations teams. The survey will take approximately 5 minutes and is completely confidential.


We will be sharing the results back with the community sometime in October.

This survey is completely confidential, your name or your company name will not be shared.

Help us to better understand what a great labor and employee relations function looks like!

The Truth Hurts: Union Embarrassments And A Strike Grab Bag

by Kimberly Ricci

We are kicking off this week with a pair of examples that show unions feeling the effects of their actions and inactions:

 

The ACLU has been ordered to reinstate a worker who criticized working conditions, thereby engaging in protected activity through social media posts. In the process, a judge held that the worker was also falsely accused by the union of making racist statements. The civil-rights organization chose to spend two years litigating the case, which has amounted to nothing more than a bad look for them. 

  • Adjunct university faculty members in Florida are seeing their unions decertified through a new law that puts unions on notice if less than 60% of bargaining unit members pay dues. In these cases, another election must be held to maintain union representation, and thus far, the law has reportedly led to decertifying unions at 20 higher-ed institutions. An important detail: the law disallows public sector employers from deducting dues from paychecks, and clearly, many union members were not seeing enough value to pay their dues and meet the 60% threshold voluntarily.

Now, we will return to regularly scheduled union programming, strike watch:

  • UAW-represented workers went on strike last week at Dakkota Integrated Systems auto parts’ Chicago-based plant, which supplies a nearby Ford plant, after overwhelmingly rejecting the tentative agreement between the company and the union. A progressive publication called out the union for being “utterly indifferent to workers’ interests” by agreeing to keep new hire wages close to minimum wage and ignoring the strike on the UAW’s social accounts.

  • International Longshoremen’s Association (ILA) members are gearing up for a possible Oct. 1 coastwide strike by scheduling a September meeting to clarify contract demands. ILA President Harold Daggett called a strike more likely than not after the union called off June negotiations with companies represented by United States Maritime Alliance (USMX) over a dispute about the current Master Contract. Daggett also asked the Biden administration to refrain from stepping in if negotiations fail, leading to a strike.

  • The IATSE-affiliated Animation Guild members rallied ahead of this week’s contract negotiations with the Alliance of Motion Picture and Television Producers. A union representative claimed that this year’s event had twice the RSVPs of a similar 2022 event, perhaps due to the industry’s recent sweeping layoffs – the union claims that a third of its 5,000 members had been laid off during the current contract – as well as member concerns including AI and outsourcing. However, as we recently discussed regarding last year’s WGA strike, unions have no idea what they are doing while negotiating for “meaningful AI projections,” so prepare to see some disappointed union members.

And this final item isn’t technically a strike but is still newsworthy:


Following a federal judge’s ruling, the Teamsters will be allowed to picket near the Amazon Air Hub at the Cincinnati/Northern Kentucky International Airport. This news follows the international union’s choice to affiliate with the flailing Amazon Labor Union, which has only managed a lone warehouse victory in over two years. Teamsters Local 89 out of Louisville have been assigned to organize the Amazon Air Hub workers at the facility.

Musical Union Chairs In The Retail/Service Sector And A Starbucks Shocker

by Kimberly Ricci

Sheer chaos is the theme of this roundup, which includes disputes over the contentious subject of unions’ first contracts, some strike authorizations, a high-profile decertification filing, and a surprise CEO shuffle:

  • New Seasons Market workers at 11 Portland, Oregon locations are preparing for a strike authorization vote after more than a year of unsuccessful initial contract negotiations by the independent New Seasons Labor Union. If the vote is successful, 1,130+ workers will stage a one-day walkout.

  • Apple retail store workers in Oklahoma City also authorized a strike – supposedly for within the next few weeks – after unionizing in 2022 and growing weary of stalled first contract negotiations. We will be watching this story closely because a strike could be especially inconvenient for this tech giant’s customers, given that this particular Apple store/Genius Bar is the only one of its kind in central Oklahoma, with the nearest counterpart being a two-hour drive away.

  • Trader Joe’s workers at the company’s first store to unionize have had enough of their SEIU overlords and filed for decertification with legal aid from the National Right To Work Foundation. TJ employees in Hadley, Massachusetts, are taking this step nearly a year after frustrated workers spoke out about deceptive organizing tactics and divisive union reactions when members expressed concerns. This petition also follows two years of representation, and you guessed it, no first contract exists here, either.

Yet, filing for decertification is only the first step in a complicated process. The NLRB could easily deny the petition, but at least these workers will not be subject to the revised NLRB rule making decertification more difficult as of September 30.

  • Walgreens pharmacists and techs at a Vancouver, Washington store became the first to file for a union election at the company. Their decision to organize under the IAM-affiliated Pharmacy Guild follows CVS pharmacists and techs unionizing earlier this year at a Las Vegas retail location as well as two Rhode Island stores – every one of which is situated at the intersection of retail and healthcare.

  • Starbucks gave the boot to CEO Laxman Narasimhan after only a year on the job. He will be replaced on Sept. 9 by Chipotle CEO Brian Niccol with the company citing a sales downturn that is surely tied to people pulling back on purchasing $9 drinks during inflationary times. Still, Starbucks hopes that Niccol, who is credited with boosting Chipotle's revenue severalfold, can turn this trend around. 

From our perspective, an interesting aspect of this shakeup is how it might affect Starbucks’ ongoing mass negotiations with Workers United. We will discuss this issue in the coming weeks. Still, it’s enough to mention that Laxman’s attempt to fix the company’s labor unease likely happened too little and late, and Niccol only saw a single Chipotle location unionize under his tenure.

 

Only time will tell how these developments will continue to unfold, but we are in the dog days of summer, and conflict’s sweltering out there.

What's At Stake With The Looming Longshoreman Strike

by Kimberly Ricci

Out of the several potential strikes currently on the table in the U.S., the walkout of most severe concern would be a possible October 1st coastwide strike by the International Longshoremen’s Association (ILA), representing 85,000 members with a new six-year contract in the mix.


ILA Union President Harold Daggett has characterized a strike as more likely than not, and he previously canceled June negotiations with United States Maritime Alliance (USMX) representing employers. Daggett also insists that the union will not extend the current contract under any circumstances. We will talk about Biden’s possible role in a moment, but the possibility of a strike cannot be ruled out, and its effects would be severe:


Sticking points: The union wants higher raises than the 32%  negotiated for West Coast dockworkers in 2023. The ILA is also focusing on protections against the use of port automation. The ILA feels so strongly about that issue and its claimed relation to job projections that a dispute over the Port of Mobile automation is why June negotiations faltered.


Potential impacts of a dockworker strike: As seen with the 24-hour West Coast walkout, even a brief port stoppage has long-lasting effects on supply chains nationwide and across the globe. And remember how the United Auto Workers (UAW) and WGA/SAG-AFTRA strikes caused pain to several industries, including retail, hospitality, food service, construction, and aviation?

In the case of this dockworker strike, the effects would be worse and touch nearly every industry while snarling 6 out of 10 most trafficked U.S. ports (including New York, Houston, and New Orleans). This would prompt a domino effect, causing shortages for most consumer goods and billions of dollars in daily damage. A week-long strike would lead to detrimental ripple effects for at least six weeks.


What to watch: ILA delegates will meet for marathon sessions in September to hammer out final contract demands. The union will also brief locals on the next steps to prepare for a strike if talks with the USMX fully collapse and no agreement is met by Sept. 30.


Could the government intervene? Daggett has requested that the Biden administration not interfere. Yet it’s difficult to imagine that Biden would not, as when he halted the 2022 railway strike, take action to prevent crippling many industries at the expense of appeasing one union, especially just before a national election.


Then again, Biden did not preemptively halt a brief 2023 walkout by 20,000 West Coast dockworkers represented by the Longshore and Warehouse Union. The 24-hour work stoppage caused days of bottlenecks there, and Biden sent Julie Su to help close the deal. With 2024 being an election year and the economy in a more precarious state, Biden might not want to wait that long to act, but it’s best not to rely on what a politician might do and prepare as though the strike will move forward.


Prepare now: With six weeks left on the clock, companies should act now to develop contingency plans for shipping if a strike does happen. The effects would potentially devastate not only retailers (ahead of the holiday season) and manufacturers but would touch most industries. It is not too soon to reroute shipments and stockpile inventory.


Policymakers have been stunningly quiet on the issue thus far, so it’s also prudent to contact legislators and put concerns on their radar. Even with these precautions, however, be warned that a strike will likely cause increased load on all ports due to diverted shipments, so any necessary preparations should start immediately.

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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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