The PRESIDENT's MESSAGE
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BAKERY, CONFECTIONERY, TOBAccO WORKERS AND GRAIN MILLERS INTERNATIONAL UNION May/ Volume 15 June 2013 Number 3 the PRESIDENT’S MESSAGE WORKERS Paying a HEAVY PRICE for CORPORATE ABUSE of Bankruptcy Laws When I began my career “Th(e) misuse of bankruptcy threatens the executives, wealthy bankers and Wall in the labor movement 40 years hard-won living standards of America’s working Street hedge fund and private equity Wago, corporate bankruptcy was families and requires restoration of fairness rip-off artists. a rare occurrence. At that time, and balance in the bankruptcy process through For the better part of a decade, corporations traditionally took comprehensive reform of the bankruptcy laws.” the AFL-CIO and its affiliates every step possible to avoid filing – AFL-CIO Executive Council have championed comprehensive for bankruptcy because it meant Statement, August, 2006 bankruptcy reform that will restore failure and resulted in enormous fairness and balance to the system hardship for all parties affected – workers, managers and by: putting workers’ wage and compensation claims ahead the community. For the top executives involved, it was a of those of all other creditors; more effectively protecting dark stain on their careers. workers’ pension and health care benefits; making it Today, the situation is far different. In the corporate significantly more difficult for bankruptcy courts to world, bankruptcy no longer carries the stigma of failure. abrogate union contracts and ensuring that executives do Concern for the company, its employees and the community no better than ordinary workers in bankruptcy. has been replaced by unmitigated greed on the part of The need for legitimate, effective bankruptcy reform corporate executives. legislation becomes more urgent by the day. Sadly, in late In the last decade, more and more corporate executives May a federal court ruled that thousands of active and have turned the bankruptcy process into a cash cow for retired Union Brothers and Sisters in the United Mine themselves and a weapon used to drastically reduce workers’ Workers working at Patriot Coal Company were to become wages, pensions and health care. The human hardship and the latest victims of the vicious corporate shell game that disrupted lives resulting from this abuse of the bankruptcy bankruptcy has become. process have been experienced in a wide range of U.S. We are well aware that the enactment of effective industries, most of which are highly unionized. bankruptcy reform legislation will be a long and very Employer misuse of the bankruptcy process is difficult fight. The BCTGM has taken on wealthy facilitated by courts that have watered down the standards corporations, Wall Street and the big banks before. We will for employer rejection of collective bargaining agreements proudly join the rest of the labor movement in doing so and termination of health care and pension benefits. again in order to protect our contracts and our members’ Employers are therefore left with just a handful of hard-earned wages, pension and health benefits. mechanical steps to take in order to break longstanding contractual obligations to their active and retired workers. David B. Durkee Moreover, the very same courts that sanction the BCTGM International President rejection of collective bargaining contracts, slashing of wages and termination of health care and pension benefits have shown an easy willingness to approve highly lucrative executive retention and compensation packages based on the faulty logic that the very same people responsible BCTGM for leading the company into bankruptcy are crucial to News achieving a “successful reorganization.” Official Publication of the Bakery, Confectionery, Tobacco Because of the tragedy and travesty of the Hostess Workers and Grain Millers International Union Brands demise, the BCTGM and our Hostess members 10401 Connecticut Avenue, Kensington, Maryland 20895-3961 (301) 933-8600 know all too well the devastating impact on lives and www.bctgm.org families brought about when corporate executives abuse the David B. Durkee, Editor bankruptcy process. Corrina A. Christensen, Assistant Editor For all of their hard work and sacrifice, our members BCTGM General Executive Board were confronted with court-sanctioned imposition of the President David B. Durkee • Secretary-Treasurer Steve Bertelli company’s disgraceful contract offering poverty-level Vice Presidents Jethro Head • Sean Kelly • Arthur Montminy wages, no pension, substandard health insurance with high Robert Oakley • James Rivers • Randy Roark out-of-pocket costs to the workers and work rule changes BCTGM General Executive Board Members that would have most assuredly left our Hostess members as Joyce Alston • Thomas Bingler • Edward Burpo • Butch Henley Johnny Jackson • Paul LaBuda • Terry Lansing • Richard Lewis part-time employees. Vester Newsome • Ron Piercey • William Shadbolt Our members refused to be victimized any longer Paula Steig • Doyle Townson BCTGM News (ISSN 1525-4860) is published bi-monthly by the Bakery, Confectionery, Tobacco Workers by this company and its greedy managers, $1,100 an hour and Grain Millers International Union, 10401 Connecticut Avenue, Kensington, MD 20895-3961. Peri- odicals postage paid at Kensington, MD and at additional mailing offices. Subscription to new members corporate attorneys and a bankruptcy system that punishes only. Postmaster: Send address changes to BCTGM News, 10401 Connecticut Avenue, Kensington, MD good, hard working men and women and rewards failed 20895-3961. 2 BCTGM News BCTGM Members Protest INTERNATIONAL LABOR RIGHTSat Mondelēz ABUSES t the Mondelēz (formerly Kraft Foods) Howard told shareholders. A shareholder meeting on May 21 near Chicago, Last year in Egypt, workers at the Cadbury the IUF and the BCTGM raised concerns about Alexandria plant formed an independent trade union. human rights abuses in the company’s overseas Management refused to recognize their union and operations. The IUF is a international union body eventually arbitrarily fired the five founding union representing food workers world-wide. leaders. In Tunisia – the country which launched the Many Mondelēz-branded cookies and crackers fight for democracy and human rights – two union are produced by BCTGM members including Oreo, leaders were also terminated from the plant where Chips Ahoy, Ritz, and Triscuit. In North America, Mondelēz products are manufactured. some 3,500 Mondelēz International workers are At the meeting, other shareholders including represented by the BCTGM, which is a member of Oxfam America, Domini Social Investments, and the IUF. BCTGM Locals 1 and 300 represent nearly As You Sow raised concerns about sustainable 1,000 Mondelēz workers in the Chicago area. business practices, including gender equality, The IUF has launched a world-wide Screamdelez in Mondelēz’s supply chain and protecting the campaign to hold Mondelēz accountable to environment. Outside the meeting, union members international human rights standards. Ron Oswald, holding banners and passing out leaflets brought general secretary of the IUF, spoke directly to attention to the shareholders at the meeting because Mondelēz human rights corporate management refuses to acknowledge concerns being evidence of these abuses. raised inside the “In both Tunisia and Egypt, Mondelēz has meeting. attempted to squash independent and democratic It remains to union representation by firing union leaders. It has be seen whether refused to bargain in good faith with its workers. Mondelēz will These workers are seeking the same universal human respond to the rights that employees of Mondelēz have elsewhere, IUF’s request including here in the United States,” Oswald said. for a meeting BCTGM Local 1 Secretary-Treasurer John to discuss the Howard expressed solidarity with workers in Tunisia situation. You and Egypt who have faced termination for exercising can keep up their right to join a union. “Mondelez ought to be with the IUF’s a leader in countries like Egypt where people have Screamdelez risked their lives for democracy. In a democracy, campaign by companies respect the rights of their employees to visiting www. form a union and have a voice in their workplace,” screamdelez.org. May/June 2013 www.bctgm.org 3 2013 REGIONAL COUNCIL MEETINGS Focus on Building a Stronger Union through ORGANIZING his spring’s 2013 BCTGM unions. International Vice President stronger union. Most importantly, T regional council meetings James Rivers chaired the meeting. council members resolved to bring shared a common theme – Atlantic City, N.J. was the new members into the BCTGM. organizing must be a top priority site of the East Central Council BCTGM International throughout the BCTGM. At each meeting, May 14-17 with delegates President David Durkee of the meetings, International representing 16 local unions. reported to the councils that the Union Executive officers and BCTGM General Executive Board International is on solid financial staff urged the delegates and local member and Local 53 President footing despite the severe impact unions to be a part of a resurgent Joyce Alston chaired the meeting. of the Hostess shutdown, the BCTGM by devoting the time, nearly 21-month lockout at energy and resources to organizing American Crystal Sugar, and new workers, including non- Organizing is Vital continued outsourcing by many of members in BCTGM shops in At each of the council employers. right-to-work-for-less states. meetings, participants thoroughly “Over the past