LETTER Labor Advisory Board MAY 2013 Vol

Published By american income life & national income life LETTER Labor Advisory Board MAY 2013 Vol. 45 No. 3

News From the reduces cost-of-living increases for current worker program to replace the current AFL-CIO, CtW, and future Social Security beneficiaries by H-2A program and legal status for farm International & $130 billion and shifts $64 billion in health workers who entered the United States care costs to Medicare recipients over 10 illegally. An estimated 70 percent of the National Unions years. Trumka noted that despite closing nation’s 1.5 million agricultural work- some loopholes, the corporate income tax ers are undocumented. The provision is The AFL-CIO recently resolved reform is “revenue neutral,” failing to ask part of the comprehensive immigration a dispute with the Chamber of Commerce “big, profitable corporations to pay their bill introduced in the Senate last month. over a low-skilled worker program that fair share of taxes.” Federal employees also “Farm workers should have enough food paved the way for Senate agreement on a will see their pay and benefits cut. “Putting to feed our families, and we should have sweeping immigration reform bill. Sen. aside the injustice of demanding sacrifice the right to be able to live with dignity Charles Schumer (D-N.Y.) mediated the from the innocent while letting the guilty and respect like anyone else here in this dispute between the two groups over wages off scot free, the Obama budget falls short nation,” UFW President Arturo Rodri- for new workers and which industries would of putting our economy on a path towards guez said. Farm workers in the country be included. The disagreement had led to a higher wages and full employment,” he illegally who agree to work in agriculture breakdown in talks earlier. The low-skilled said. “This austerity budget is bad econom- for an additional five to seven years would workers will be allowed into the country un- ic policy at a moment when the economy become eligible for a “green card” allow- der a new program to fill jobs in construc- remains weak and we urgently need more ing permanent U.S. residence. The work- tion, hotels and resorts, nursing homes and job-creating investments.” ers hold legal status, dubbed a “blue card” restaurants, and other industries. A new “W” by negotiators, during the interim. The visa program would be created that would United Farm Workers union, provision also sets a system for setting pay allow tens of thousands of lower-skilled U.S. growers and key senators agreed in scales and a higher ceiling for the number workers into the country. The visas would be principle on the creation of a new guest of visas that could be granted. capped at 200,000 yearly, but might fluctu- ate depending on unemployment numbers and other factors. A new federal agency will be established to collect data as an objective monitor. Workers would be able to change jobs and seek permanent residency. Organized labor had harsh words for President Obama’s FY 2014 budget because of cuts in social programs. “We believe cutting Social Security benefits and shifting costs to Medicare beneficiaries, while exempting corporate America from shared sacrifice, is wrong and inde- fensible,” said AFL-CIO President Rich- ard Trumka. The administration’s proposal UFW President Arturo Rodriguez. Flickr.com photo used under Creative Commons from Randy Bayne. james williams, General President Emeritus- International Union of Painters and Allied Trades, Chairman - AIL/NILICO Labor Advisory Board VICTOR KAMBER, Vice President - American Income Life Insurance Company, Executive Director - AIL/NILICO Labor Advisory Board ROGER SMITH, Chief Executive Officer - American Income Life Insurance Company, President - AIL/NILICO Labor Advisory Board DENISE BOWYER, Vice President - American Income Life Insurance Company, Secretary - AIL/NILICO Labor Advisory Board Pg 2 LABOR LETTER

the past few years. The statement said that 4,500 factories have closed, adding that there is a need for the government to address the issue by reopening factories that were closed after losing their contract due to rulings by the Administrative Court. The statement also said the government must recover state assets that have been smuggled overseas and increase the budget for education, health, and scientific research. Australian Council of Trade Unions said changes to the superannuation system announced April 4 by the Federal Government are “a long-overdue step which will make superannuation fairer and more sustainable.” ACTU President Ged Kear- ney said that the Keating Government and Visitors at the Louvre Museum in Paris, France. Flickr.com photo used under Creative Commons the union movement introduced superan- from RickChung.com. nuation to provide low-to-middle income workers with a comfortable retirement, not International of Mexican migrant agriculture workers as a system of tax planning for the wealthy. Labor News are protected, and that they get their fair “These are changes which reflect the true share for their work, whether they own the spirit of the superannuation system that One of the world’s most fa- land or not,” said Hanley. Under the pact, was introduced in 1992, a system designed mous museums, the Louvre in Paris, was UFCW Canada and the CNC will develop to allow hard-working Australians to enjoy shut down April 10 when the 200-member a comprehensive database and analytical re- a secure and comfortable retirement,” Kear- staff walked off their jobs. The staff went on ports on the conditions facing migrant ag- ney said. The changes provide a 15 percent strike to publicize abusive actions by roving riculture workers in Mexico, United States tax on earnings over $100,000 from assets pickpocket gangs, some up to 30 members and Canada. They will use the research and supporting income streams, a move that will strong, who roam the galleries and prey analysis to develop programs to improve ac- affect just 0.4 percent of retirees. “Superan- on museum goers. The staff at the Louvre cess to social programs and benefits such as nuation is a world-leading system for en- have reportedly been spit at, threatened, health, housing, and educational subsidies suring that low-to-middle-income workers and hit by the pickpocket gangs. “They for the workers and members of their fami- have enough for a comfortable retirement. It threaten guards by telling them that they lies. The two unions also pledged to share also ensures that the Aged Pension remains know where they live,” one staff worker told their experience and political strength to sustainable even though Australia has an the news media. According to staff work- give a voice to the concerns of Mexican mi- ageing population,” Kearney said. ers, the gangs swagger through the galler- grant agriculture workers internationally. ies, infiltrate the crowds that stop to look at the priceless works of art, and rummage Egypt’s independent trade National & through their pockets and purses. They unions held a mass demonstration May 1, Political Events sometimes even include children. Labor Day, in Cairo’s Tahrir Square to “support demands advocated by the workers.” Fewer Americans are filing Mexico’s National Farm Work- The protest, announced by the Federation new claims for unemployment benefits, sug- ers’ Confederation (CNC) and United Food of Independent Trade Unions, included gesting that job creation might be picking & Commercial Workers Canada signed an many national groups. Aside from the call up. The Labor Department said last month historic agreement to ensure that the rights for bread, freedom, social justice and human that claims for state unemployment benefits of migrant agriculture workers are protected dignity, the Federation said a minimum and dropped 42,000 to a seasonally adjusted and defended in Mexico, Canada and the maximum wage law remains a core demand 346,000, the largest weekly drop since mid- United States. The mutual cooperation for workers. Other demands include ensur- November. Economists had expected first- agreement was signed on April 9 by UFCW ing trade union freedoms, an end to the time claims to fall to only 365,000. Employ- Canada National President Wayne Hanley abuse of workers, and addressing the issue ers added only 88,000 workers to payrolls and Senator Gerardo Sanchez, President of of rising prices. The Union also demands the in March, the fewest in nine months, after the CNC. “Together, UFCW Canada and government address the issues surrounding a solid 268,000 increase in February. “All CNC will fight to make sure that the rights a halt in production at several factories over the March employment report provided a LABOR LETTER Pg 3 hint of is that jobs that normally would have major ports along the East Coast. The Mari- a labor effort launched last fall by New York got hired in March, some of them got hired time Alliance includes container carriers, di- Communities for Change. Jonathan Wes- earlier in February,” said Michael Strauss, rect employers, and port associations serving tin, the group’s director, said the campaign chief economist at Commonfund in Wil- the East and Gulf Coasts. was “one front” in a fight for better wages ton, Connecticut. Analysts are now closely in low-paying industries and companies watching jobless claims data for signs of Culinary Workers Union Local around the country, including car-washes, layoffs related to $85 billion in government 226 and Bartenders Local 165, the two big- supermarkets and Walmart stores. In No- budget cuts known as the “sequester.” Opin- gest unions on the Las Vegas Strip, opened vember, about 200 New York fast-food ion is divided on what impact the spending contract negotiations April 4 with MGM workers at 30 stores went on strike for a $15 cuts will have on the labor market. Resorts International and Caesars Entertain- hourly wage, an action that Westin said was ment. UNITE HERE President D. Taylor inspired by a similar protest by Walmart A new Wall Street Journal/NBC will lead negotiations for the unions. The workers. Organizers estimated that there News poll found that 84 percent of women current pact, signed in 2007, expires in June are 50,000 fast-food workers in New York believe they are paid less than men for do- and covers thousands of hotel and restaurant City who earn $10,000 to $18,000 per year. ing the same job and 35 percent have suf- workers at some 20 resorts owned by the two fered discrimination on the job. In contrast, companies. “The companies and unions have Bakery, Confectionery, Tobac- only two-thirds of men agree with that worked together for decades to create good co Workers and Grain Millers Internation- opinion. According to figures from the Bu- jobs,” Jeanette Hill, a casino porter at the al union members in North Dakota, Min- reau of Labor Statistics, women who work Flamingo, said in a statement released by the nesota and Iowa approved a new contract full-time earn weekly about 79 percent of Culinary Workers. “Every contract negotia- with American Crystal Sugar Co. on April what men are paid for doing similar jobs. tion I’ve been a part of has been different but 13. The 1,300 union workers had been The Institute for Women’s Policy Research ultimately, both sides want the casinos to be locked out of their jobs for 20 months and found that the average pay for women is great places to work.” Union representatives their struggle became a national cause for less than for men in almost every type of earlier said they hope to maintain the cur- labor. The BCTGM said in a news release occupation. “More than four in 10 women rent wages and benefits package workers have that 55 percent of the workers voted to ac- say they have faced gender discrimination with the hotel-casinos. In recent months, the cept management’s contract offer. It was personally, most often in the workplace,” unions have held several pickets to protest the workers’ fifth time voting on the con- the survey found. The proportion of women stalled contract talks with Cosmopolitan Las tract. “This means Crystal Sugar’s skilled, who think they “can’t ‘have it all’ without Vegas owner Deutsche Bank. experienced workers will be transitioning making a lot of sacrifices at work and at back to the factories to start repairing the home,” dropped from 78 percent in 1997 to Hundreds of New York City damage that’s been done over the past 20- 66 percent at present, the survey said. fast food workers went on strike for a day plus months,” John Riskey, the head of a April 4 to win a $15 minimum hourly wage. union local that represents employees at An estimated 400 workers from more than three American Crystal Sugar factories, Regional & five dozen restaurants around New York said in the news release. The new pact will Local Labor City joined the action. The protest was orga- run until July 31, 2017. Returning union News nized by the Fast Food Forward Campaign, workers will receive a total pay increase of 13 percent over the course of the contract, East Coast and the Gulf of Mex- with 4 percent the first year, 3 percent the ico dockworkers ratified a new six-year con- second and 2 percent the remaining years. tract with the U.S. Maritime Alliance, ending The company had been running the plants more than a year of negotiations. The Interna- with replacement workers. tional Longshoremen’s Association said the new pact, which covers some 14,500 workers, includes wage increases totaling $3 an hour In the Public spread out over the life of the agreement. By Sector the final year of the new contract the hourly pay rate will be $35 an hour. There also will be The American Federation of no changes made to the health care plan. “We Government Employees urged the Depart- all worked very hard, achieved landmark im- ment of Defense to cancel the planned fur- provements and protected our members and lough of civilian workers. “We are encour- our union for many years,” said ILA Presi- aged to hear that Pentagon leaders may be dent Harold J. Daggett. The contract expired Protestors from the Fast Food Forward Campaign rethinking their foolish and reckless policy September 30, 2012 and federal mediators in New York City. Flickr.com photo used under to furlough nearly every civilian employee negotiated extensions to avert a shutdown at Creative Commons from peoplesworld. for 14 days,” AFGE National President J. Pg 4 LABOR LETTER

David Cox Sr. said. He said the Depart- announced April 2 is “simply designed to as- ment should “do the right thing for its sist gun manufacturers flood the nation and employees and the country.” According to our schools with more guns and large maga- news reports, Defense initially proposed zine clips, which will simply lead to more furloughing more than 700,000 civilian violence.” She said Congress should reject employees for 22 days due to budget cuts the NRA’s “dangerous posturing” and fol- required under sequestration. In March, it low the lead of the Connecticut legislature. announced that it would reduce the number Gun safety legislation recently adopted in of days employees would be forced off the Connecticut includes comprehensive back- job without pay to 14 days. The Associated ground checks, and a ban on large magazine Press recently reported that the Pentagon clips and military assault weapons. “These is considering further cutting furloughs to reforms would strike at the heart of Amer- 7 days. “Many of the services and Defense ica’s gun violence epidemic,” she said. The agencies say they can reduce or eliminate NRA proposal, Weingarten said, will not the number of furlough days for their work- stop another gunman with automatic weap- ers, and they should be allowed to exercise ons and munitions “from shattering the safe this flexibility,” Cox said. “Forcing all em- sanctuary of our schools.” Chair of the NLRB Mark Gaston Pearce, Flickr.com ployees off the job without pay for the same photo used under Creative Commons from AAUP. number of days out of some misguided no- tion of fairness is damaging to employees Significant President Obama April 9 an- and undermines the mission.” Legal and NLRB nounced his plan to submit three more nom- Actions inees to serve the National Labor Relations The weeks-long strike that be- Board (“NLRB”). Two other nominations gan March 4 by nearly 400 teachers, coun- In a 6-3 ruling, the Texas Su- are currently pending and, if confirmed, the selors, school nurses and psychologists in preme Court overturned two lower court three new picks would bring the NLRB to the northeast Ohio town of Strongsville rulings and declared state employees have no its full complement of five members. The continued with no end in sight at press right to union representation at disciplinary three new nominations include the current time. The Strongsville Education Associa- meetings, commonly known as “Weingar- NLRB Chairman, Mark Gaston Pearce, tion and Strongsville Board of Education ten” rights. The Texas AFL-CIO union is- and two Republicans, Harry I. Johnson, III, have met with a federal mediator at the sued a sharply worded statement saying the and Philip A. Miscimarra, both lawyers in Federal Mediation and Conciliation Ser- court “respects neither clearly stated work- private practice. Johnson and Miscimarra vice but no progress has been reported. place rights nor common concepts of justice both have represented management over SEA President Tracy Linscott has called and fairness.” The 1975 Supreme Court de- their careers, while Chairman Pearce came on the school board to enter into binding cision in NLRB v. Weingarten found that to the NLRB from a practice representing interest arbitration, which would bring the private-sector employees have the right to a unions. The nominations must be confirmed teachers back in the classroom and defer union representative if an employee believes by the U.S. Senate. The selections come the decisions of a settlement to a mutually a meeting with managers could lead to dis- against the backdrop of the U.S. Court of agreed upon third party. “I am calling on cipline. Congress granted the same right to Appeals for the D.C. Circuit in NLRB v. our Board of Education to stand up today federal employees soon after. The Weingar- Noel Canning, which held the NLRB now for our students,” Linscott said. “We need ten decision stems from a portion of Sec- lacks constitutional authority to act because three out of five board members to stand up tion 7 of the National Labor Relations Act the recess appointments previously made by and do what is right and sign our request that gives employees the right to engage in President Obama in January 2012 were not for binding interest arbitration.” The board “concerted activities” for collective bargain- valid.The ruling is under appeal. has refused the offer, claiming it was not ing purposes. But the Texas high court said appropriate to “delegate to an out-of-town the state’s labor code contains no similar lan- third party the authority to spend Strongs- guage. And “in the thirty-eight years since ville taxpayer dollars and concede manage- Weingarten was decided, the Texas Leg- Labor Letter ment rights.” islature has declined to enact similar legis- provided through lation,” Judge Paul Green wrote. The case The American Federation of concerned Jaime Rodriguez, a firefighter in Teachers called the National Rifle As- the city of Round Rock who was told by a sociation’s “National School Shield” pro- supervisor that he could not have a union gram a “cruel hoax” that will fail to keep representative present in an investigatory children and schools safe. AFT President interview over Rodriguez’s possible misuse Protecting Working Families Randi Weingarten said the NRA’s proposal of sick leave. www.ailife.com AGENDA MAY 2013

“It’s time to end the practice of taxing the low-wage, minimal benefit workplace income made by wealthy investors in the model, paying poverty-level wages as a stock market at a lower rate than income way to offer lower prices and boost share- generated by work,” Bair says. “Republicans holders’ earnings. should put fundamental tax reform on the Costco has taken a different approach. Edwin D. Hill table and make it our priority to end pref- Costco’s workers have access to quality International erential treatment of investment income, health care and decent retirement benefits, President, which lets managers of hedge funds pay half and the company has resisted pressure to International the tax rate of managers of shoe stores.” outsource work to other countries, choosing Brotherhood of Wouldn’t it be better, Bair asks, for the to locate its call-center operations in house Electrical Workers Federal Reserve, instead of putting more — right in the U.S.A. “cheap money” into banks and the financial A decade ago, Costco stock traded for Who is Pro sector, to finance construction projects to $32 a share. Today it is $100. And just days rebuild the nation’s transportation and en- after Jelinek announced his support for Business? ergy infrastructure? “From Lincoln’s trans- raising the minimum wage, his company re- continental railroad to Eisenhower’s high- ported a profit of $537 million — up from Speaker of the House John Boehner way system, Republicans have understood $394 million last year. and his party’s followers claim that if the that investing in critical infrastructure proj- At one point in our history, Jelinek’s Senate and the nation-at-large supported ects creates jobs and expands commerce,” and Bair’s approach to economics was not their policies, businesses would flourish and she says. all that unique. It was Henry Ford who first unemployed Americans would be headed In 2009, Sheila Bair was named by realized that paying his employees a decent back to work. Forbes Magazine as the second most pow- wage meant more of them could afford to But over the past few weeks, those erful woman in the world after Chancellor buy his cars, boosting business and allowing same policies have been strongly rebuked by Angela Merkel of Germany. him to hire even more workers. a highly-respected lifelong Republican and If words are powerful, we would all For much of the second half of the by a businessman celebrated for his profit- benefit if Sheila Bair, now a senior advisor at 20th century, the idea that a living wage was able entrepreneurship. the Pew Charitable Trusts, recovers some of good for business and America was a key Meet Sheila Bair, who served for five her former influence. Prosperity and growth component of the social compact that led to years as chairwoman of the Federal De- for America’s working families will only the greatest period of economic growth and posit Insurance Corporation, and Craig happen if Democrats and Republicans both prosperity in our history. Jelinek, the CEO of Costco Wholesaler, heed her common-sense solutions. But beginning with Ronald Reagan’s one of the country’s top warehouse retail- We can expect that some of the folks busting of the air traffic controllers strike ers, boasting a bigger market share than Bair is criticizing will say that she hasn’t had in 1981, corporate America and segments Sam’s Club. experience running a business. If so, what of the political class decided to tear up the Bair describes herself as “a capital- would they say in response to Craig Jelinek, compact, setting the stage for massive in- ist and a lifelong Republican.” In an op- who shares her concerns about growing come inequality and a declining middle ed published in the New York Times, she wealth inequality in America? class that haunts us today. slams Republican leaders for supporting Jelinek has turned upside down the Big CEOs and corporate traders — policies that “[skew] income toward the up- conventional wisdom on Wall Street and who are raking in more profit now than per, upper class.” That “hurts our economy,” among so-called conservatives in Washing- they did before the 2008 recession — may she says “because the rich tend to sit on ton that in order to survive in today’s global not be worried, but for the vast majority their money — unlike lower-and middle- marketplace, businesses must drive down of working Americans who are finding it income people, who spend a large share of wages as low as they can go. harder and harder just to make it, the Wal- their paychecks, and hence stimulate eco- By their reasoning, Costco should have Mart model is unsustainable. nomic activity.” gone belly up years ago because the com- Costco shows that businesses can make But Bair doesn’t just take shots at her pany actually pays its workers more than it in America by investing in good jobs that fellow party members. She proposes solu- the industry average. A typical Costco em- provide a road to the middle class and uplift tions to rebuild the U.S. economy that make ployee makes approximately $45,000 a year; workers and the broader community. Genu- common sense. She dares to talk about at Sam’s Club, it’s just $17,486. ine economic recovery requires that more taxes. But she doesn’t just mindlessly mimic Sam’s Club is owned and operated corporations follow in Jelinek’s footsteps the tea party’s call to cut all taxes, leaving by Wal-Mart Stores Inc., the Arkansas- and more policy makers listen carefully to worthwhile programs starving. based company infamous for pioneering Bair’s warnings. Pg 2 AGENDA

Save Saturday Mail Rallies

AIL/NILICO representatives participated with postal workers in under the Continental Congress. In the group photo, AIL/NILICO’s Tim numerous rallies and demonstrations across the nation recently in Bishop joined members of the National Association of Letter Carriers support of keeping Saturday mail delivery. AIL/NILICO’s Brian Ryan at their rally in Oklahoma (top left). In Florida, Rosanna Gill (at right) reports on the demonstration at 3rd & Market St. in Philadelphia (bottom participated with postal workers in the Sunshine State rally (top right). center), the site of Benjamin Franklin's Post office and just in front of As a result of the pressure, the United States Postal Service recently his home. Franklin served as the nation’s first Postmaster General shelved plans to eliminate Saturday mail delivery. AGENDA Pg 3

NFFE Local 2109 Protest Washington State Nurses AIL/NILICO’s David J. Scalisi (center with sign) supported members Amanda MacDonald, Washington State AIL/NILICO public of the National Federation of Federal Employees Local 2109 at a No relations, shows solidarity with the Washington State Nurses Furloughs Rally in Watervliet, New York. The workers protested 14 days Association who have a contract dispute with St. Joseph Hospital of mandatory sequestration furloughs and other anti-federal policies. in Bellingham.

Locked-Out ILWU Members AIL/NILICO’s Lori Vaughn (foreground) joined hundreds of International of ILWU Local 4 workers at the port’s grain export terminal operated by Longshoremen and Warehouse Union members and other supporters in Mitsui-United Grain. The workers were locked out by the Japanese-owned a recent march and rally in Vancouver, Washington, to protest the lockout company on February 27. Pg 4 AGENDA

LABOR ADVISORY BOARD Adds Two New Members

David. B. Durkee Rev. Terrence L. Melvin BCTGM CBTU AIL/NILICO CEO Roger Smith welcomed David. B. Durkee, Rev. Terrence L. Melvin, President of CBTU and Secretary- president of the Bakery, Confectionary, Tobacco & Grain Treasurer of the 2.5 million member New York State AFL-CIO, Millers union, to the AIL/NILICO Labor Advisory Board. “We has joined the AIL/NILICO Labor Advisory Board, announced are really pleased to have President Durkee join us and we will AIL/NILICO CEO Roger Smith. “Rev. Melvin will bring a broad benefit greatly from his experience and advice,” said Smith. range of experience and an important regional perspective to the board,” said Smith. The union’s General Executive Board elected Durkee in September 2012 to serve the unexpired term of Frank Hurt, who In December 1983, at age 21, Mr. Melvin became the retired effective January 1, 2013 after serving as president of the youngest CSEA Local President when he was elected to International Union since October 1, 1992. the position of President of CSEA Local 427, a local union representing more than 2,000 members. In January 1996, Durkee was first elected to fill the open position of International Mr. Melvin was appointed Executive Assistant to CSEA Secretary-Treasurer by the BC&T’s General Executive Board in Statewide President Danny Donohue. In this position, May 1998. He was elected to his first full term as International he oversaw and directed the day-to-day activities of Secretary-Treasurer on July 17, 1998, during the union’s 35th the President’s office and was responsible for overall Constitutional Convention in Las Vegas, Nevada. He was re-elected coordination of the Senior Staff of the Union. by union delegates at the 2002, 2006 and 2010 Conventions.

Painters’ James Williams Retires

in April 2003 after serving four years as General Secretary- Treasurer. That same year, he was appointed to the AFL- CIO’s Executive Council where he continues to serve on the Finance, Human Rights and Political committees. In 2004, he was unanimously reelected to the office of General President by convention delegates. A strong believer in lifelong education, Williams completed his college bachelor’s James A. Williams degree in 2004 and received his diploma along with four IUPAT members of his executive board and 18 other IUPAT James A. Williams, of the International Union of Painters members from across the U.S. and Canada. and Allied Trades, retired as General President effective April 1, 2013. He was succeeded by Kenneth E. Rigmaiden A Vietnam veteran, Williams served as an infantryman and who was unanimously elected by the union’s General was awarded two Bronze Stars, the Army Accommodation Executive Board. Medal and an Air Medal, as well as the Combat Infantry Badge. He completed his union apprenticeship and worked The General Board also named Williams General President as a journeyman glazier in 1971 after his discharge. Emeritus upon his retirement. Williams serves as Chairman of the AIL/NILICO Labor Advisory Board, a post in which he will continue.

A native of Philadelphia, Williams was unanimously elected General President by the union’s General Executive Board