Labor Pains: Because Being in a Union can be Painful

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  1. Corrupt Cappuccinos? Unions Looking to Organize Coffee Shops Aren’t Giving Workers the Whole Story

    Some of the country’s most influential labor unions are attempting to unionize baristas across North America. Workers United is the most-visible and prolific union, but several others–the United Steelworkers (USW), the United Food and Commercial Workers (UFCW), and the International Brotherhood of Teamsters (IBT)–have also launched campaigns to organize baristas. 

    If the unions in question sound like an odd fit for your neighborhood coffee houses, you’d be right. 

    Their strategy is simple: Appeal to the progressive ideals of younger workers to drive up their number of dues-paying members. There’s only one problem. Much like Workers United, these unions aren’t being totally honest with workers about their reputations. 

     Start with the Teamsters, whose historical record earned it a reputation as one of the country’s notoriously corrupt unions. 

    For decades, the union was controlled by the mafia, which used violence to enforce its agenda. (Former union President Jimmy Hoffa, who disappeared in 1975, is thought to have been killed by the mob.) A lawsuit under the Racketeer Influenced and Corruption Organizations (RICO) act led to a consent decree with the federal government, designed to root out mob influence in union leadership. The union was just released from over a quarter century of federal oversight in 2020. 

    Have things improved? Since the beginning of 2020, three Teamsters officers have pleaded guilty to various financial crimes. These crimes amounted to a combined restitution of nearly $400,000 and more than three years of prison time. The crimes range from conducting a financial crimes enterprise, receiving prohibited payments, and conspiracy to solicit and receive bribes. 

    Not to be outdone, the Steelworkers union was identified as one the most corrupt unions of the early 21st century by the Department of Labor, citing over 300 criminal convictions against USW officers and employees from 1998 to 2019. The Department of Labor noted that there are ten larger unions – circa 2020 – than the USW with a lower rate of corruption.

    High ranking UFCW members may not be under federal oversight, but they have been subject to numerous criminal charges, including embezzlement, false statements, and wire fraud. As recently as 2023, a former UFCW president was sentenced to two years imprisonment for embezzling union funds.

    If union leaders are sometimes keeping money for themselves, they don’t seem to be spreading the wealth. In 2020, UFCW Local 400 issued a statement that workers should be prepared to strike against the supermarket chain Kroger. But hidden in the details of the statement was the fact that the national headquarters of the union would only pay workers $100 a week after the first eight days of striking. By the end of 2020, the union paid nearly double for hotels ($1,003,755) than on strike benefits for workers ($574,173). While UFCW Local 400 members would have struggled financially if a strike took place, the union had nearly $90 million in on hand cash by the end of 2020.

    There’s more where this came from, including thousands of unfair labor practice charges filed against these unions covering millions of employees. In the weeks ahead, we plan to profile each union in greater detail, with a close eye on their individual reputation as “progressive posers.” 

    Categories: Workers United
  2. Times Square Billboard: Is Workers United’s Bank Male, Pale, and Stale?

    Today, the Center for Union Facts launched a billboard in Times Square asking if Amalgamated Bank — where the SEIU affiliate union Workers United is the largest shareholder — is Male, Pale, and Stale. Workers United is the union behind efforts to organize Stabucks workers throughout the county.

    The billboard highlights the findings of the third in a series of reports that was also released this week by CUF. The report focused on diversity in the Bank’s leadership. The findings were eye opening.

    In 2020 and 2021, Amalgamated Bank dedicated sections in its Corporate Social Responsibility Reports solely to diversity, equity, and inclusion. The Bank stated that it was dedicated to “expanding diversity among the decision makers in each area of the Bank.” It also claimed that “diversity has always been a critical part of our heritage and identity.”

    We evaluated these claims by analyzing workplace demographic data the Bank filed with the federal government’s Equal Employment Opportunity Commission (EEOC) – these are called EEO-1 reports. We averaged out the employment data from 2017 through 2021 – 2022 is not yet available – to analyze the Bank’s diversity profile, specifically among upper management.

    The data shows that the Bank’s executive/senior management positions were – on average – 81% White and 72% male between 2017 and 2021. It also shows that diversity drops significantly at the highest compensated/managerial positions within the Bank.

    The Bank stated in 2021 that it is “focused on further diversifying senior management in the coming years,” and indeed appears to have increased executive diversity in 2022. Future EEO reports will reveal whether those changes are statistically meaningful.

    Key Takeaways:

    • White employees made up – on average – 81% of executive/senior management at Amalgamated Bank between 2017 and 2021.
    • On average, Black, Hispanic, and Asian employees accounted for just 13% of executive/senior management at the Bank. This is substantially lower than minority representation in lower paying positions at the Bank.
    • Women made up – on average –  just 28% of executive/senior management between 2017 and 2021.
    • The Bank’s employment numbers show that there is less minority representation for employees as you move farther along the upper management structure.
    Categories: Workers United
  3. Employee Rights Act of 2023 Introduced in House and Senate

    Today, Senator Tim Scott (R-SC) and Representative Rick Allen (R-GA) — with support from Senate Republican Leader Mitch McConnell and other key Republicans — introduced the Employee Rights Act (ERA) of 2023. The Center for Union Facts, along with over 30 other organizations, has voiced support for the bill which is vital piece of legislation that will empower American workers and protect their freedom of choice in the workplace.

    Over the past several decades, America’s workers have innovated to meet the demands of our changing economy. But America’s labor laws haven’t significantly changed since 1947. First introduced in 2011, the ERA will update our labor code to better protect workers’ rights, while also reflecting major changes to our economy in recent years. According to our polling, the legislation’s key provisions are overwhelmingly popular with union households, as well as the American public more broadly.

    The bill has been condensed from previous versions to focus on several key provisions, including updates to address modern-day concerns such as new protections for franchise small businesses.

    The legislation’s key provisions are highlighted below:

    • Secret Ballot Elections. The ERA will ensure that any vote to organize a workplace or hold a strike is done via private ballot. Today, unions can bypass private votes in favor of a public “card check” election – a means by which unions organize by collecting signatures or “cards.” Without a private ballot, workers can be subject to harassment or intimidation to sign a card authorizing the union to represent them. The union boss–backed Protecting the Right to Organize (PRO) Act would essentially eliminate the secret ballot vote and replace it with a card check system. But a secret ballot ensures that workers always have a private, protected vote that reflects their true preference for unionization in their workplace. Simply put, workers should have the right to vote on their representation in the workplace the same way they vote on their representation in Congress.
    • Employee Privacy. There is currently no ability for employees to prevent their personal information from being disclosed to the National Labor Relations Board and to the union that seeks to represent them. The ERA limits the amount of employee personal information a union receives during an organizing drive. In addition, the bill makes it an unfair labor practice if the union uses employees’ personal information for any reason other than a representation proceeding.
    • Political Protection. Many workers join a union in hopes that their dues will help improve their workplace. But hundreds of millions of dollars in union dues are spent each year supporting political candidates and causes, rather than collective bargaining issues. The ERA would require workers to consent to their union dues being used for anything other than collective bargaining efforts.
    • Protection for Independent Contractors. This common-law test determines the appropriate classification for a given worker by relying primarily on the degree of control and independence that worker maintains. The ERA creates consistency when it comes to defining employee and independent contractor status, providing much-needed clarity for both workers and employers.
    • Protection for Local Businesses. The ERA includes the Save Local Business Act, which clarifies the joint employer standard to provide clarity and certainty for small business owners and workers. It would allow more franchisees to own their own businesses, giving more Americans the opportunity to realize their dream of starting their own business.

    As technology advances and more industries seek to navigate a post-pandemic economy, it is common sense that our labor laws – which haven’t been meaningfully updated in decades – adapt to today’s diverse economy and provide the best protection possible for America’s workers.

    Learn more about the ERA at EmployeeRightsAct.com.

    Categories: Employee Rights Act
  4. NEPOTISM PREVAILS: Hypocritical Union Rewards Family with Leadership Positions

    News reports, union financial data, and U.S. Securities and Exchange Commission (SEC) filings reveal that Workers United has a track record of nepotism.

    SEC reports show that the Secretary Treasurer of Workers United – Edgar Romney Sr. – has a son employed at Amalgamated Bank –  a bank where Workers United is the largest shareholder. A board member of the bank since 1995, Edgar Romney Sr.’s position on the board could have allowed his son to elevate through the company for the last fifteen years. His son – Edgar Romney Jr. – was recently promoted to chief revenue officer of the bank.

    According to Amalgamated Financial’s 14A Proxy Statement from 2022:

    Romney Sr. might have taken his cues from leadership at Workers United and one of its predecessor unions – UNITE. Former UNITE President Bruce Raynor and his sister were both on the payroll at the same time in the early 2000s. Harris Raynor was the UNITE southern regional director and an international vice president when her brother was the president of the union.

    Shortly after Bruce Raynor formed Workers United in 2009, his sister was promoted to president of the Southern Region Joint Board and was earning a six-figure salary and was reimbursed for more than $60,000 in business expenses.

    According to the 2011 Financial Filings with the Department of Labor for the Southern Region Joint Board:

    Perhaps the most visible representation of nepotism at Workers United is its current president – Lynne Fox. Fox’s father –- John Fox – was the manager of the Philadelphia Joint Board of UNITE/Amalgamated Clothing and Textile Workers for nearly twenty years (UNITE and Amalgamated Clothing and Textile Workers are predecessors to Workers United).

    At the end of her father’s leadership, Lynne Fox appeared in a 1998 newspaper article as working as the “assistant manager” of the Philadelphia Joint Board.

    Immediately after her father’s retirement from UNITE, Lynne Fox was promoted to his old position: international vice president and manager of the Philadelphia Joint Board.

    According to the National and Regional Joint Board 2001 Financial Filings with the Department of Labor:

    Even after Fox’s retirement, the name John Fox appears on the payroll as “special projects director” and “office staff” between 2001 to 2008. All said and done, John Fox was paid over $350,000 from the union.

    According to the Philadelphia Regional Joint Board’s 2001-2008 Financial Filings with the Department of Labor:

    Nepotism at Workers United also has a home in the Rochester Regional Joint Board, where Gary Bonadonna Sr. retired and was replaced as manager by his son, Gary Bonadonna Jr. Bonadonna Jr. previously served as the “assistant manager” under his father. Although Bonadonna Sr. had “retired,” he remained on the payroll for the next three years as the “assistant to the manager” and collected a total of $120,000.

    Have any examples of Workers United’s nepotism? Tell your story at [email protected].

     

     

    Categories: Workers United
  5. New Report Exposes Hypocrisy of “Progressive” Starbucks Union Group

    This week, the Center for Union Facts released new research exposing the hypocritical investments and radical leadership of Workers United, the group behind the high-profile labor campaign to organize Starbucks workers nationwide.

    CUF’s research report is part of a new education campaign–launched this week to educate workers and call out Workers United as a “progressive poser” who owes union members, liberal supporters, and the general public some answers.

    Workers United has organized baristas across the country through an appeal to their progressive values. But the union has an alter ego: Workers United is the largest shareholder of Amalgamated Bank, a “socially responsible” institution which reports nine-figure investments to the SEC in industries—including fossil fuels, big tobacco, gun manufacturing, and more—which the union and bank publicly claim to oppose.

    This includes more than $700 million reported in fossil fuel-based companies, while maintaining that “none” of the bank’s money funds the “oil and gas or coal industries.” There’s also another reported $10 million in private prison and crowd control companies—including a tear gas manufacturer—despite claiming to be “very concerned” about the growth of the private prison industry. These private prison companies are the same groups that have been used to detain undocumented immigrants at the border and have been accused of compliance in former President Trump’s family separation policy. And another nearly $70 million in tobacco and gun/ammunition companies.

    The report also highlights the radical ideologies of Jaz Brisack, the high-profile leader of Starbucks Workers United who is on the record defending a convicted Palestinian terrorist and promoting other disturbing anti-Israel views.

    The hypocrisy of Workers United is staggering. The progressive workers with whom Workers United claims to align deserve an explanation.

    Categories: Workers United
  6. UAW Tries to Rewrite History on Corrupt Union Leadership

    In honor of President’s Day, the United Auto Workers (UAW) launched a series of videos to highlight their presidents, both past and present. But not everyone made the cut. Conveniently, the union decided to skip over about half a decade and two pretty consequential union leaders.

    Anyone watching the videos will notice the years 2014-2019 are missing. The UAW might be taking a page out of the Soviet Union’s playbook by trying to rewrite history, but we’re more than happy to set the record straight.

    Let’s start with Dennis Williams, who served as President of the UAW from 2014 to 2018. Williams was “convicted of conspiring with at least six other senior UAW officials in a multi-year conspiracy to embezzle money” from the union. He helped conceal hundreds of thousands of dollars in personal expenses which included “multi-month long stays at private villas in Palm Springs, cigars, golfing apparel, green fees at golf courses, and high-end liquor and meals.”

    For his role in the corruption scheme, Williams was sentenced to 21 months in prison and forced to pay $15,459 in restitution to the IRS as well as $132,517 in restitution to the UAW.

    Let’s not forget about Williams’ partner in crime, former President Gary Jones, who led the union from June 2018 to November 2019. Similar to Williams, Jones also enjoyed a lavish lifestyle on his members’ dime. He admitted to using members’ dues to pay for numerous personal expenses, including “golf clubs, private villas, cigars, golfing apparel, green fees at golf courses, and high-end liquor and meals costing over $750,000 in UAW funds.” He even used dues dollars to purchase “over $60,000 in cigars and four sets of custom-made golf clubs for the use of high-level UAW officials.”

    Jones was sentenced to 28 months in prison and forced to pay $550,000 in restitution to the UAW as well as $42,000 restitution to the IRS.

    Poor Dennis was also ordered to forfeit a custom-made set of Titleist golf clubs and various golf clothing as part of a court order, while Gary was ordered to return four sets of custom-made golf clubs himself. The horror! Here’s to hoping their short game won’t suffer.

    It’s no wonder the UAW wants to erase these two from history. But as the union attempts to reform itself – now under the guidance of a court-appointed independent monitor – the corruption of the past should be a lesson to both union leaders and members, not a secret to be swept under the rug.

    As we await the results of the latest election for UAW President, let’s hope the next leader prioritizes union members over their golf game.

    Categories: UAW
  7. Tennessee Workers Deserve the Right to a Secret Ballot Vote

    Today, the Center for Union Facts (CUF) will run a full-page ad in the Chattanooga Times Free Press asking why the United Auto Workers (UAW) won’t give Tennessee Workers a secret ballot vote.

    The ad highlights new legislation introduced earlier this week in Tennessee that would protect the secret ballot vote in union elections on tax-payer funded projects. It also points out that when UAW members recently voted on who should be their next President, they were allowed to do so through a secret ballot. Workers that the UAW or any union want to organize should be afforded the same right.

    The ad features a union leader wearing an “I know how you voted” pin to emphasize how without secret ballots, no vote is private. The UAW supports a “card” check” system over secret ballot votes for its members. UAW President Ray Curry was recently quoted praising the union’s ability to organize a battery plant in Michigan: “Because of the foresight of collective bargaining, the UAW will be able to organize this new facility using a card check to prove majority interest.”

    The ad is meant to educate the public and workers about the bill and direct them to learn more about the importance of secret ballots at WorkplaceElectionIntegrity.com.

    The legislation mentioned in the ad was introduced last Tuesday by Tennessee House Speaker Cameron Sexton. The bill would require companies receiving state subsidies to guarantee workers a secret ballot election during union organizing drives. It would also bar businesses from sharing employees’ personal information with labor groups.

    Right now, employers are allowed to recognize a union via a method known as “card check.” This system requires the union to get a majority of employees to publicly sign a union authorization card. It’s a largely unregulated system that puts employees at risk for coercion, intimidation and even bullying from union organizers.

    Fortunately, this bill would make sure that any company benefiting from tax payers dollars would also respect workers’ choice and the right to a secret ballot vote in union elections.

    Categories: UAWWorkplace Election Integrity
  8. Labor Racket Weekly: New Year, Same Union Corruption

    It may be a New Year, but it doesn’t look like union bosses have made any resolutions to do better in 2023. Check out the latest labor rackets below.

    In Rhode Island, Dennis Stone, former President of Fraternal Order of Police (FOP) Local Lodge 13 (located in North Providence, R.I.), was indicted with three counts of embezzlement over $100, in violation of R.I. General Laws 11-41-3, and six counts of filing a false tax return.

    In Rhode Island, Christopher Petteruti, former Treasurer of Fraternal Order of Police (FOP) Local Lodge 13 (located in North Providence, R.I.), was indicted with two counts of embezzlement over $100.

    In theDistrict of Columbia, Crystal Mathis, former President of American Federation of Government Employees (AFGE) Local 1812 (located in Washington, D.C.), was charged with one count of theft in the first degree.

    In Nebraska, Donald Fox, former Secretary-Treasurer of National Association of Letter Carriers (NALC) Branch 1836 (located in Scottsbluff, Neb.), was indicted on one count of embezzlement of union funds in the amount of $24,620 and four counts of filing false reports.

    In Virginia, Albert Jennings Jr., former Secretary-Treasurer of Transportation Communications Union (TCU) Lodge 6061 (located in Roanoke, Va.), was sentenced to six months in prison, three months of home detention, one year of probation, and 300 hours of community service. Jennings was also ordered to pay a $500 fine. Jennings made full restitution of $39,331 prior to sentencing. On September 29, 2022, Jennings pleaded guilty to one count of embezzlement from a labor organization.

    In Illinois, Western Division, Brent Toppert, former Financial Secretary-Treasurer of Security, Police and Fire Professionals of America (SPFPA) Local 238 (located in Morrison, Ill.), was charged in a criminal information with one count of embezzlement from a labor organization.

    In New Mexico, Manuel Anaya, former Financial Secretary of United Mine Workers for America (UMWA) Local 3106 (located in Socorro, N.M.), was indicted for 21 counts of embezzlement from a labor organization.

    Categories: Labor Racket Weekly