Deadline Is Today in McDonald’s Labor Case That Could Affect Millions

From today’s New York Times:

The Trump appointee charged with enforcing federal labor rights is scrambling to head off a court ruling in a case against McDonald’s that could redefine the accountability of companies for the labor practices of their franchisees.

The official, the general counsel of the National Labor Relations Board, has been exploring settlement terms with workers at the center of the board’s complaint against McDonald’s, according to lawyers involved in the case. A judge had halted the trial until Monday to give the agency a chance to do so.

If no settlement is reached and the judge were to rule against the company, the decision could have enormous implications for the franchise business model, affecting millions of workers in the fast-food industry and beyond. Corporations could be required to bargain with unionized workers at disparate franchise locations.

The National Labor Relations Board did not respond to a request for comment. A McDonald’s spokeswoman said that “settlement discussions are a normal part of any litigation process.”

The case was brought during the Obama administration, when the board was under Democratic control. Since President Trump’s election, Republican members have regained a majority, steering the board away from a pro-labor orientation.

Read the complete article here.

N.L.R.B. Ruling Holds McDonald’s, Not Just Franchisees, Liable for Worker Treatment

From today’s NYT by Steven Greenhouse:

The general counsel of the National Labor Relations Board ruled on Tuesday that McDonald’s is jointly responsible for workers at its franchisees’ restaurants, a decision that if upheld would disrupt longtime practices in the fast-food industry and ease the way for unionizing nationwide.

Richard F. Griffin Jr., the labor board’s general counsel, said that of the 181 unfair labor practice complaints filed against McDonald’s and its franchisees over the last 20 months, he found that 43 had merit on such grounds as illegally firing or threatening workers for pro-union activities.

In those cases, Mr. Griffin said he would include McDonald’s as a joint employer, a classification that could hold the fast-food company responsible for actions taken at thousands of its restaurants. Roughly 90 percent of the chain’s restaurants in the United States are franchise operations.

McDonald’s said it would contest the decision, warning that the ruling would affect not only the fast-food industry but businesses like dry cleaners and car dealerships.

Read the entire article here.

MI workers resist “right-to-work” law

Michigan lawmakers began debate today on controversial “right to work” legislation that would forbid requiring workers to pay union dues. The legislation is expected to pass despite widespread protests in and around the state capital. If it passes MI will be  the 24th state with such laws that limit union participation as a condition of employment.

Two years ago Wisconsin Republican Governor Scott Walker proposed other controversial legislation limiting the bargaining power of public employee unions as a cost-cutting measure. The measure passed despite opposition from both unions and the public, but Walker was punished for it in a brutal recall election he barely survived. Similar legislation failed to pass in Ohio a year later as anti-union sentiment continues to thrive in a difficult economic climate.

So-called “right to work” legislation is anything but employment guarantees and workplace protections. In fact, by diluting the power of unions to maintain “closed shops” with employers, such legislation actually diminishes the individual and collective voice rights in labor contracts, making it easier for employers to pay weak wages, provide little benefits, and terminate employees on demand.

The recent movement to pass “right to work” laws has been backed by corporate and industry lobbying efforts in conjunction with the Republican Party and groups such as the National Right to Work Legal Defense Foundation. The wisdom of such legislation is questionable in the long run as the wages of American workers continue to decline and the cost of employment benefits are increasingly placed on the shoulders of employees. In the short term support for this misnamed legislation has received a boost from calls for austerity against big government. However, it isn’t big government spending that is to blame for the sluggish economic recovery, but declining revenues tied to a tax base that has significantly shrunk in the wake of the recession.

Once again it appears that workers with good paying jobs will pay the price of corporate and political corruption, and unfortunately many Americans are helping to destroy these jobs by backing right-wing policies against workers‘ rights.

NYC fast food workers stage walk out, fighting for rights to unionize

Dozens of fast food workers at some of the country’s largest chains, including McDonald’s, Taco Bell, and Domino’s, walked off the job today in a coordinated campaign to highlight low wages and encourage unionization. The campaign is backed by community groups, civil rights groups, religious leaders, and a labor union, the Service Employees International Union.

Workers are protesting what they said are low wages and retaliation against those workers who have backed unionization among the thousands of fast food worker in New York City. Coordinators claim this is the first multi-restaurant strike by fast food workers in American history, and promised further action as unions make in-roads into the traditionally anti-union fast food industry.

Over the decades there have been efforts to unionize single fast-food restaurants or chains, but there has never before been an effort to unionize multiple restaurants at one time. The new campaign states advocates raising low wages and reducing the disparities of income inequality.

CUNY sociology professor Ruth Milkman said, “These jobs have extremely high turnover, so by the time you get around to organizing folks, they’re not on the job anymore.”

 

Hostess, union fail at negotiations

Hostess announced Tuesday night that it failed to reach a new agreement with BCTWGM, and union officials said the company plans to proceed with shuttering its operations after 82 years in business.

18,500 workers will lose their jobs overnight, adding more grist to the grind of the  jobless recovery. Today’s announcement came four days after the company announced that its liquidation, which many observers believed was all but assured by the union’s strike.

The firm filed for bankruptcy last January because its labor costs were unsustainable and that it needed to cut its wage, health and pension costs to continue operating—despite the questionable practice of paying executives gross compensation packages for an otherwise struggling company.

Walker survives recall election by outspending his challenger 7-to-1

It’s another disappointing day for “free-and-fair” elections in America.

In his bid to retain office, Gov. Scott Walker of Wisconsin outspent Democratic challenger Tom Barrett 7-to-1. Despite fallacious Republican rhetoric about states’ rights, Walker won the recall election with the help of millions of dollars from out-of-state and corporate campaign contributions.

It would be difficult to determine exactly how much each candidate spent to buy a single vote due to lax and convoluted campaign finance laws. However, here are some facts that can help form a rough estimate.

TOTAL EXPENDITURES:

1. Walker spent about $32 million total in the 2012 recall election, the supermajority of it coming from outside the state by special interests including wealthy individual donors, special interest groups, and SuperPACs. This figure represents almost twice as much as both Walker and Barrett spent together in the 2010 gubernatorial race.

2. Roughly 38 percent of Walker’s individual donations came from WI residents.

For example, the Republican Governors Association alone used independent expenditure and phony issue ad groups, spending an estimated $5 million to sponsor numerous TV ads that claimed voting for Barrett’s would lead to higher taxes and lost jobs.

3. By contrast, Barrett spent about $5 million in this election much of it coming from middle class donors and labor unions representing state workers, teachers, police, and firefighters.

4. Roughly 74 percent of Barrett’s individual donations came from WI residents.

TOTAL VOTES:

1. Walker took 53.1 percent of the vote with 1,334,450 ballots.

2. Barrett took 46.3 percent of the vote with 1,162,785 ballots.

3. The difference is 171,665 ballots.

PRICE POINTS:

1. Walker and his out-of-state supporters effectively paid $23.97 per vote.

2. Barrett and his supporters paid $4.35 per vote, about five times less than Walker.

This is American democracy at its finest in the Age of Money and Propaganda. If political commentators are wondering why Walker is the first governor in American history to survive a recall vote, the answer is clear. He spent more money—most of it coming from people who are not even his constituents.

Instead of reconciling themselves to the inevitable, and going along for the sake of getting along, WI voters would be in their right mind to revolt against state government, which apparently no longer represents them, either by demanding legislation to end campaign contributions from out-of-state contributors, or by storming the state capitol in Madison with pitchforks and torches.

State Democrats shut down WI government

Protestors pack the rafters of the State Capitol in Madison, WI.

In a brave move of solidarity with public employee unions the Democratic state senators of Wisconsin walked out of the chamber yesterday in Madison to stall the efforts of Governor Scott Walker to vote on a bill that would effectively end collective bargaining rights of unions. The Wisconsin State Senate requires at least 20 senators to call a vote on fiscal matters, and with a majority of 19 senators the Republican controlled chamber was unable to conduct business. Madison has become a battleground over the last week as protesters, students, unions, teachers, and other progressive forces have descended on it to stage rallies and sit-ins, drawing attention to the anti-union austerity measures introduced by the governor. GO DEMOCRACY!