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THERE IS S IN UNITY TRENGTH RATION O DE F E L F A B A O W R O I AFL-CIO AFL-CIO D e a s ow Moines I NEWS IOWAVolume 14, Issue 1 Official Publication of the Iowa Federation of Labor, AFL-CIO June 2014 Old Fashioned Cronyism Alive And Well In The Branstad Administration By Charlie Wishman no list, and is not shared with any- If you’re keeping score, there one. have been many news accounts of Then, the Associated Press asked the unfolding scandals around the for the list, and a list was furnished Branstad Administration, but in this and released to the public for view. article we attempt to put all of the It does not say why these people pieces together. are on this list, and in addition it is What started as an investiga- deeply flawed considering current tion into employees who were ter- state employees are on this list. In minated or resigned and received addition to existing state employees “hush money” settlements has now being on the list, some are await- peeled back layers of other wrong ing grievance hearings and arbitra- doing in Iowa’s state government. tions according to President Danny So what’s the latest? Let’s sort all of Homan of AFSCME Iowa Council this out. 61’s analysis. Is this a real “scandal”? The state claims that this wasn’t Yes, it is. When Governor Brans- a list, it was codes on a computer. tad has to fire a top department di- That’s parsing words. We live in rector for lying to legislative com- a world that uses computers, and mittees and the people of Iowa, then codes on a computer that can be run that’s a scandal. The question now as a list is still a list. is who else has been lying or com- Let’s look at the Iowa Veterans’ mitting wrong doing, and will the Home’s blacklist. The former Di- Governor fire them or take respon- minated, and with that many were architects, engineers, and other ex- rector there was accused of making sibility? paid settlement money so that they perts in vertical infrastructure. DAS sexist remarks and creating a hostile So what exactly are the accusa- wouldn’t talk to anyone about what has admitted that these people that work environment for employees. tions? was going on. were laid off were 100% qualified to This led to his down fall, but of the There are multiple allegations as Director of Department of Ad- hold these positions, but just want- 61 employees on that list, it is not this investigation has gone on. We’ll ministrative Services (DAS) Mike ed new people in those positions. surprising that 50 are women. start with the “secret” settlements. Carroll testified to the joint House Then, after these positions were This information was wrong to re- First, when Governor Branstad and Senate Oversight committees eliminated, the Vertical Construc- lease to the public in the first place, took office, his departments be- that he was in no way involved tion Advisory Committee within and the list released was flawed at gan to “restructure” state govern- with any hush money payments. the department was disbanded, and that. There is now a lawsuit result- ment. This included reclassifying This was immediately contradicted the work of these people was turned ing from the blacklist and its release employees from “merit” positions by documents that had his signa- over to a private construction man- from people who were on it. to “at-will” positions, meaning ture on them proving that he did agement company to the tune of $11 Didn’t Culver and Vilsack do this they would be easier to fire. Then, know, and was then promptly fired million dollars. too? many of these employees were ter- by Governor Branstad. Oh and did I mention that Mike Yes, but for different reasons Even more troubling through Carroll’s background is in the con- and not on the scale that Governor questioning by members of the struction industry? Iowa has now Branstad has. During Culver’s term Oversight Committee it has come hired 990 jobs without properly we saw two settlements for $61,878 to light that there very well could posting these positions to the pub- in lump sum payments to outgo- have been federal funds used to lic. This is important because it has ing employees. We also saw under make these payments, something allowed people across state gov- Vilsack a total of 5 settlement deals PAID that would be illegal. The state may ernment to hire their friends and in his eight years in office. These have to pay the Federal Government business associates. This is what is settlements were done within the U.S. POSTAGE U.S. NON-PROFIT ORG. NON-PROFIT back. In addition, this practice went called cronyism, and it has no place normal grievance procedure. What PRESORT MAIL, INC. MAIL, PRESORT on through February of 2014, and in state government. Cronyism is we know now, is that during the that its total cost was (at the time of partiality to long-standing friends past four years of Branstad we have this writing) over $500,000 and was or business associates, especially by seen (so far) dozens of settlements paid through accounts that cover appointing them to positions of au- totaling (so far) over half a million construction management costs, ef- thority regardless of their qualifica- dollars in payments. The scale and forts to make energy efficient, and tions. purpose aren’t even comparable. general operations. I’ve heard about a “blacklist”. So is anyone taking responsibil- It has now recently come to light What’s that all about? ity? that our regents’ institutions have DAS and the Branstad admin- So far, no. Everyone from DAS, paid $1.16 million in secret settle- istration has claimed that there is as well as the Governor and anyone ment payments since 2011. no “do not hire list.” Keeping a list else in state government has said Ok, so DAS seems to have lied. for the purposes of denying others that they knew none of this was go- Why? future employment with others is ing on. We’ll use DAS as an example of called a “blacklist,” and is covered What other things are being in- what has been going on in state gov- under Iowa Code section 730.1. That vestigated? ernment since Branstad has come law primarily affects private sectors It has been alleged by outgoing into office. In September of 2011, workers, and public employees de- Public Employee Relations Board seven employees of DAS were let serve the same protections. Either (PERB) chairperson Jim Riordan go. These were project managers, way, the state claimed that there is Iowa AFL-CIO Iowa News AFL-CIO Federation of Labor, Iowa A St., Suite 2000 Walker 50317 Des Moines, Iowa continued on page 2 Page 2 IOWA AFL-CIO NEWS June 2014 The President's View . Get Off The Couch as the parties’ priority seems to be to and you should talk to your union registering them (and their family beat each other’s brains out instead or your labor council or call us at members) to vote and getting them of passing legislation that will make the IFL to see if there is a race that to fill out absentee ballots or go to progress on jobs, or infrastructure we need volunteers to make a differ- the polls to vote in this election. or just about anything else that is ence. Our program is union mem- We take the political process seri- meaningful for working America. bers talking to other union mem- ously. We talk with candidates, we By large margins, Americans feel bers, educating them on the issues, educate them on our issues, sur- that our economic system unfair- vey them to find their position on ly favors the rich. Americans also worker issues and then a 2/3s vote IFL President Ken Sagar believe that the economy makes of support is required at our COPE things too hard on the middle class. Convention to get an endorsement. Another election cycle is upon Americans think that the govern- In 2010, too many working people us. I, for one, am not at all excited ment should do something to help stayed on their couches and the about the prospect of my right hand reduce inequality. Americans are right-wing, anti-worker people took cramping from using the mute but- frustrated with our government over state legislatures and governor ton on the remote for the next six and believe that the country is off positions across the country. They months. on the wrong track. literally destroyed decades of prog- We have gridlock in Washington What can you do? ress for workers in the years that The choices are clear cut. Sit on followed. Just look at what hap- IN UNITY THERE IS STRENGTH the couch, do nothing, bitch and pened in Wisconsin or Michigan RATION O DE F E L F A B A O W R O I AFL-CIO buy into the conservative message or Indiana. We must not make that AFL-CIO D a for the middle class – that the rich mistake again. e s ow Moines I NEWS IOWA get tax breaks and the poor get “Educate yourself for the coming public assistance, but no one helps Educate yourself for conflict,” said labor organizer Mary The Iowa AFL-CIO News is the them. Harris Jones. It was as accurate then official publication of the Or, get off the couch and partici- the coming conflict.