Attacks on Teachers, Airline Workers, and Public Pensions in Canada Highlight Need for a Fighting Labor Movement
by Roger Annis
A trend is taking hold across Canada of working class resistance to the capitalist crisis and attacks by governments and corporations on workers' rights and the social wage. Library workers in the city of Toronto and transit and university workers in Halifax recently went on strike, as did daycare workers in Quebec. Workers at Air Canada have staged a series of protests and strikes in the past year. Teachers and students in British Columbia recently struck for better education, while in Quebec students are waging a spectacular mass campaign against rises in post-secondary tuition fees. Provincial government workers are restive.
Some 300,000 government service workers in British Columbia are bargaining a new collective agreement and saying no to the same wage and services freeze the government is seeking to impose on teachers. The government of Ontario recently delivered a budget that aims to cut billions of dollars in services and thousands of jobs. Equally noticeable is the lag in organizing the broad solidarity necessary for these struggles to win. This article examines the two sides of a dynamic and unfolding reality.
Teachers Defend Education
The 41,000 members of the BC Teachers' Federation (BCTF) are in the midst of a bitter collective bargaining confrontation with the provincial government. They are fighting a two-year salary freeze that the Liberal government is seeking to impose. They also want to win back the right to bargain class sizes and other aspects of their work that directly affect the quality of the education they provide. Teachers began job action at the beginning of the school year, last September, declining to participate in voluntary activities and cooperate with administrators, including refusing to fill out report cards. Job action escalated into a three-day strike beginning March 5 when the government announced it would impose a draconian law to strip away the right to strike and send disputed issues to a skewed "mediation" process. Bill 22 says mediation must correspond to the government's guideline of a two-year, "net zero" increase to education spending. The bill was passed into law on March 17. It imposes stiff penalties on the union and individual teachers for strike or other job action. Further strike action appears unlikely. The union is mulling participation in the government's mediation, something it said earlier it would not do. It recently announced it would mount a major effort over the coming year to unseat the government. The next provincial election will take place in May 2013. Support for the teachers' struggle has been very strong in the province, including a province-wide strike by secondary school students on March 2. But it has been lacking from other unions. Notwithstanding the fact that the government and its popularity is "in free fall," according to the BCTF and confirmed by recent polls, the broader labor movement in the province has not mobilized in support of teachers. The BCTF expects it will get a more sympathetic ear should the opposition New Democratic Party get elected in 2013. The trade union-based party is leading the Liberals in the polls by a huge margin. But its leaders have stated they will not repeal Bill 22 and they have not said if and how they would satisfy teacher/parent/student grievances.
Airline Workers Get Hammered
Airline workers in Canada suffered a blow on March 18 and 19 when the aircraft maintenance company AVEOS staged a bankruptcy that has thrown some 2,600 highly skilled workers out of work in Montreal, Winnipeg, and Vancouver. The company said it is out of money and may not even meet its salary and pension obligations to workers.The flagrant abuse of this bankruptcy spectacle has angered and offended the people of Quebec in particular. About 1,800 of the affected workers are in Montreal. For several days following the bankruptcy announcement, AVEOS workers protested and blocked traffic leading into the corporate offices of Air Canada in the city.On March 21, the National Assembly of Quebec (provincial government) passed a resolution unanimously demanding the federal government undertake "all possible legal recourse" to keep the AVEOS facility open. Talks and legal actions are underway to revive some or all of the shuttered AVEOS/Air Canada operation, including using money from the state-assisted Solidarity (capital investment) Fund of the Quebec Federation of Labour.In British Columbia, the legislative assembly unanimously adopted a resolution in early April that asks the federal government to accord to the AVEOS facility in Vancouver whatever job protection might be won in other cities.
Declining Conditions of Airline Workers
AVEOS was created in 2007 by Air Canada, the largest airline in the country. It was a spinoff of a portion of its aircraft maintenance division. The airline shifted its heavy maintenance work to the shadow company while keeping its line maintenance in house. ("Heavy maintenance" is the major overhaul that aircraft routinely require in order to remain safe to fly. "Line maintenance" is the repair and maintenance required by aircraft while in service, typically retained by airlines for reasons of quality control and speed of service.)Around the time that AVEOS was created, Air Canada purchased a heavy maintenance aircraft repair facility in El Salvador, where wages are about 15 percent of what the company pays in Canada. Although that facility became part of AVEOS, its ownership structure was jerry-rigged to keep it unaffected by a future 'bankruptcy' of its parent. The airline thus became well placed to shift its heavy maintenance elsewhere for a fraction of the cost.The moves to offload maintenance of aircraft were only the latest in a series of steps by investors to loot Air Canada of its accumulated value following the privatization of the airline in 1988. Among the many moves that have earned hundreds of millions of dollars for the directors and shareholders of Air Canada since its privatization are: Lowering of salaries and benefits of operations workers (cleaning, baggage handling, handing of planes at terminals, etc.) through a two-tier system of remuneration of new hires. Expansion of part-time and on-call work wherever possible. Purchase of Air Canada's largest competitor, Canadian Airlines, in 2001 and then declaration of insolvency in 2003 to liquidate debt from that and other acquisitions. Sale in the early 2000s of Air Canada's engine repair shops to a foreign buyer specializing in that work.Sale of the flyer rewards division of the airline. Creation of a short-haul (under three hours of flying), lower-wage division of the airline, called "Jazz." The gradual breakdown of common bargaining among the three or four major unions at the airline.Other attacks on Air Canada workers are taking place simultaneous to the AVEOS shutdown, notably against the right to bargain collective agreements. Beginning last year, the federal government now routinely outlaws strikes at the airline. Bargaining in 2011 prompted job actions by two of the three major unions at Air Canada -- the Canadian Autoworkers Union (ticket agents) and the Canadian Union of Public Employees (flight attendants) -- but they also prompted anti-strike laws. No significant protest was mounted either by the affected unions or by the broader labor movement. Negotiated agreements with the CAW and CUPE included a new, lower-tier pension for new employees. This year, the government threatened the same anti-strike measure against the International Association of Machinists and Aerospace Workers (IAM) and its pilots association. Talks with the IAM are currently in mediation where the CAW/CUPE pattern will weigh heavily. Looming over the entire situation at the airline is the threat of a repeat performance of the 2003 bankruptcy. This could set the stage, as in 2003, to pressure workers for more wage and benefit concessions. Air Canada has unfunded pension obligations of more than $2 billion for its past and present employees.
Attack on Canada's Public Pension Plan
On March 29, the Conservative government that was re-elected with a parliamentary majority last year announced an unprecedented attack on Canada's public pension plan. The measure was contained in a budget projection that also targets cuts of key public services and several tens of thousands of jobs. If the pension measure passes through Parliament, the age of eligibility of the second tier of the pension plan, Old Age Security, will pass from age 65 to 67. OAS pays some $550 per month to pension earners of annual incomes below $69,000. An earlier attack in 2009 increased the penalties for those drawing the first tier of the national pension, the Canada Pension Plan (CPP), before the age of 65. Those drawing CPP at the earliest eligible age, 60, for example, will be penalized for life by 42 per cent, compared to the previous 30 per cent. This was a bipartisan attack supported by the then-official opposition party, the Liberals.
Lessons
Some important lessons flow from these current battles. The main one is the need for mass mobilization of workers if employer attacks are to be turned back. The days of relying on good will or favorable court decisions are long past.The public pension situation is instructive. In 2010, pressure from members was building on Canada's unions and their political party, the NDP, to launch a mass campaign to increase benefits of the Canada Pension Plan. This was fueled, in part, by the growing practice of companies (cf. Air Canada) to underfund their employee pension plans.The federal government deflected the mounting pressure by promising to legislate increases to the CPP. But it set a condition on union and NDP leaders: "Don't pressure us with mass actions on Parliament Hill." Union leaders acquiesced, the informal deal was on. Months later, the government reneged, announcing instead a new plan to give tax breaks to employee/employer-funded pension plans that invest in financial markets. In 1985, a mass movement dubbed "grey power" arose when the federal government of the time sought to lessen inflation protection for the public pension plan. No equivalent protest is happening in response to these latest cuts, but that could quickly change. Teachers in BC have learned firsthand the dubious benefit of court appeals as substitutes for strikes or other mass action. An appeal by the BCTF of two anti-union and anti-education laws adopted in 2002 took more than eight years to wind its way through the courts. The BC Supreme Court finally ruled that Bills 27 and 28 violated some of the basic rights of teachers. In the new Bill 22, the government formally repealed Bills 27 and 28 and then placed nearly identical language in the new law!Hospital workers in BC have been similarly disappointed by the courts. In 2004, the provincial government outlawed a province-wide strike of hospital workers and then proceeded to privatize some 8,500 jobs of hospital support staff and cut the wages of all other staff. Three and a half years later, the BC Supreme Court ruled the law illegal. The affected union declared a big victory, but the court's remedy was a miserly financial compensation of a few thousand dollars to those workers who lost their jobs.When AVEOS was created in 2007, every worker at Air Canada feared this was a move to eventually shift heavy maintenance work to lower-wage jurisdictions in other countries. Workers staged protests when the news broke.Leaders of the IAM and of provincial and federal federations of labor made blustery speeches saying the decision would not be allowed to pass. But the speeches ended in one feeble action -- an appeal to a federal court asking it to rule that the creation of AVEOS was in violation of the 1988 Air Canada Public Participation Act. That act was created to soften union opposition to the privatization of Air Canada, then a state enterprise. It directed Air Canada to maintain its "maintenance work" at three facilities -- Montreal, Toronto. and Winnipeg.1
In 2010, a federal judge accepted Air Canada's word that it planned to keep maintenance work in the targeted cities. The judge conveniently ignored a precise interpretation of what "maintenance work" constituted. Incredibly, if the IAM thought that AVEOS was being set up for an eventual downfall, it never said so publicly or acted accordingly. It turns out that Air Canada helped to precipitate the "bankruptcy" of AVEOS by quietly directing its work away from it. The long history of the dismantling of Air Canada -- what can only be described as the looting of a former public enterprise -- goes largely unmentioned by all parties involved.
What Road Ahead for Workers?
Private employers and especially federal and provincial governments are stepping up their attacks on jobs and public services. A more militant and coordinated response is needed by the union movement. All indications show the desire of workers for just such a course. Last year, the Occupy movement was widely hailed. Strike activity is on the upswing. Air Canada workers show the restive mood -- rank and file-initiated strikes and protests have become near commonplace and workers are typically rejecting concession agreements negotiated by their leaders.Working-class resistance has been strongest in Quebec. The social democratic NDP won a landslide victory in the province during the 2011 federal election. A mass student movement is refusing to bow to government threats and has mobilized tens of thousands in the streets.The challenge before the unions is to act as a social movement on behalf of the entire working class and break from the mould of job trusts focused on looking after the narrow interests of their dues-paying members. In the wake of the federal budget that attacked the OAS, newly elected leader of the NDP Tom Mulcair said the party would do "everything possible within the Parliamentary arena" to oppose the budget. But much more is needed. While it is useful to have a voice in Parliament on behalf of workers' interest, current battles will be won in the streets and on the picket lines. That is where attention and solidarity must be directed. Furthermore, all this will help open the door to the political challenge to capitalist rule that is needed and increasingly on the agenda. 1 The Air Canada maintenance facility in Vancouver was not named in the 1988 law because Air Canada only acquired it in 2001 through the purchase of Canadian Airlines.
Roger Annis may be contacted at rogerannis@telus.net
URL: mrzine.monthlyreview.org
Monday, April 16, 2012
Public Worker Pension Assault
Ruling class takes aim at public worker pensions
John Dillon and Glen Brown
Remarks made by Illinois Teachers Retirement system (TRS) Executive Director Dick Ingram became an immediate subject of a recent panel discussion held by the Better Government Association on April 9, 2012, at Loyola University in Chicago.
Two members of the pension committee convened by Governor Quinn had an opportunity to speak about what “we all face” in light of increased pension costs because of the unfunded liability (money now owed and that has not been paid into the fund during several governors’ tenures).
Panelist at the Better Government Association forum on the TRS situation were (left to right) State Rep. Darlene Senger, Henry Bayer (AFSCME), Tyrone Fahner (Civic Committee), and Elaine Nekritz (State Rep.). Substance photo by Todd Mertz. Representatives Darlene Senger and Elaine Nekritz spoke about the nature of the deficit problem and moving forward to make adjustments to the retirement system. Henry Bayer, executive director of the American Federation of State, County and Municipal Employees, AFL-CIO, Council 31, and Tyrone Fahner, president of the Civic Committee of the Commercial Club of Chicago were also present.
Fahner was quick to remind everyone in the audience that “out of a sense of responsibility to his membership, Mr. Dick Ingram, head of the TRS, has admitted to the pension system’s insolvency”; that the “real numbers were hidden.”
Rank-and-file members from the public unions in the room were silent, not out of surprise but because once again they were hearing Ingram’s words being used to make a case that “cuts” to the current teachers and, quite possibly the retirees, were necessary, despite the constitutional provision that protects such changes.
When asked “what are the limits of pension reform? Where must we stop because of the constitution,” Fahner replied that “the only limits are that we can’t take what’s already been earned. That would be inappropriate and unconstitutional.” Nonetheless, Fahner said that changes going forward can be “frozen” or “changed”; that Chief Legal Counsel to Illinois Senate President John Cullerton and Parliamentarian of the Illinois Senate “Madiar is wrong” about his analysis regarding a current employee’s vested right when he or she enters the pension system. He also said “if we do nothing, everyone is screwed.”
Senger added “SB 512 wasn’t unconstitutional. It wasn’t taking away benefits. We have a system that is failing” and “every time you delay a solution, it becomes costly.” Senger also declared that the employer (school district) should pay the normal costs since the employer makes the contracts, and that “the COLA is the problem” and “should be suspended like in Rhode Island.”
The Chicago Tribune had cited Ingram a few days earlier: “With insolvency looming in as little as 17 years, the head of the state’s largest pension fund is a warning that pension benefits promised to teachers, starting with those already retired, may need to be cut” (Teachers and pension cuts. Chicago Tribune 4 April 2012). Another article by Chris Wetterich in the Springfield’s State Journal Register had quoted Ingram: “What we are saying is that the number is so bad that you have to start having those conversations. The reality is that if you look at the pension math, the single biggest cost is the COLA” (31 March 2012).
The reactionary firestorm was to be expected. Rank-and-file, as well as the IFT and AFCSME, were shrill in their condemnations of Ingram’s sudden and unexplained change. The Illinois Education Association likewise responded but with close connections to the TRS (the president of IEA is also a TRS trustee): “It’s important to understand that the current situation is very serious but capable of being resolved. TRS, SURS, and other state systems can be saved, but we need to understand that it will not be easy or inexpensive."
Meanwhile, Ingram has been eager to make clear that his statements were a warning regarding what would happen as a result of the state’s failure to fund or lessen the funding to the teachers’ pension. Those were, according to Ingram, the reasons for the stress tests conducted by Buck Consultants. In short, his words were being used “out of context.” To make this even more clear, Ingram printed a clarification in the Chicago Tribune’s Voice of the People on Tuesday, April 10 that stated: “Neither I nor the Teachers Retirement System is proposing any changes in member benefits, especially a reduction in the current annual cost-of-living adjustment… It is not our role at TRS to suggest a solution to this problem.”
Nevertheless, in the same editorial, Ingram once again warns that he has told his board that significant changes must occur in order to avoid insolvency, and these changes need come from newly-generated revenue sources. He further said “Any of these significant changes can only be made by the General Assembly.” For the media, Ingram outlined the “possible areas where lawmakers may look for a solution. There are only a few options available, and none are very pleasant to discuss – changes in the cost-of-living adjustment, in member contributions, in retirement age and in the benefit formula, as well as increased revenues through taxes.”
When the question of finding revenue rather than cutting pension benefits was asked, Senger’s immediate response was “giving an ‘over-spender’ [the State of Illinois] more money is not an answer.” Fahner then asked the audience in the forum: “Do you want your taxes to go up?” While no one wants an increase in taxes, and most people want an equitable and fair taxation for all, Fahner reminded the audience that under Illinois’ current tax structure, they [the middle class] would take the brunt of any increase). Bayer countered that Fahner “wants to fix the pensions and roll back $6 billion worth of taxes” on the wealthy and corporations.
When asked “are taxpayers going to take another hit?” Nekritz responded that “we knew that the [income] tax increase wasn’t going to solve the pension problem.” When asked whether the retirement age for current teachers be raised, Senger, Nekritz and Fahner said “yes”; Bayer said “no.” When asked whether the COLA be a part of the pension solution? Senger, Nekritz and Fahner said “yes”; Bayer said “no.” When asked whether the state should pay what it owes, all of them said “yes.”
They will not be the establishment of a broader tax base so rates are “lower in order to minimize the impact…” and because a broader tax base offers “diversification since it spreads the burden of taxation among more payers than a narrow basis does” (National Conference of State Legislatures).
They will not be the taxation of services to increase needed revenue despite the fact that “the tax system in the State of Illinois does not reflect today’s economic realities” (Chicago Metropolitan Agency for Planning) and the State of Illinois taxes less than one-third of the 168 potentially-taxable services (Center on Budget and Policy Priorities).
Moreover, it will not be the elimination of welfare for the rich even though “the State of Illinois is among 10 states in the nation with the highest taxes paid by its poorest citizens at 13 percent” (the Institute on Taxation and Economic Policy), and one of the few states where the top five percent of income earners pay the least amount of sales, excise, property and income taxes because of federal deduction offsets or regressive tax loopholes from itemized deductions, such as capital gains tax breaks and deductions for federal income taxes paid that are coupled with a flat-rate structure (the Institute on Taxation and Economic Policy). They will be suggestions to cut the constitutional benefits of teachers, however.
John Dillon and Glen Brown
Remarks made by Illinois Teachers Retirement system (TRS) Executive Director Dick Ingram became an immediate subject of a recent panel discussion held by the Better Government Association on April 9, 2012, at Loyola University in Chicago.
Two members of the pension committee convened by Governor Quinn had an opportunity to speak about what “we all face” in light of increased pension costs because of the unfunded liability (money now owed and that has not been paid into the fund during several governors’ tenures).
Panelist at the Better Government Association forum on the TRS situation were (left to right) State Rep. Darlene Senger, Henry Bayer (AFSCME), Tyrone Fahner (Civic Committee), and Elaine Nekritz (State Rep.). Substance photo by Todd Mertz. Representatives Darlene Senger and Elaine Nekritz spoke about the nature of the deficit problem and moving forward to make adjustments to the retirement system. Henry Bayer, executive director of the American Federation of State, County and Municipal Employees, AFL-CIO, Council 31, and Tyrone Fahner, president of the Civic Committee of the Commercial Club of Chicago were also present.
Fahner was quick to remind everyone in the audience that “out of a sense of responsibility to his membership, Mr. Dick Ingram, head of the TRS, has admitted to the pension system’s insolvency”; that the “real numbers were hidden.”
Rank-and-file members from the public unions in the room were silent, not out of surprise but because once again they were hearing Ingram’s words being used to make a case that “cuts” to the current teachers and, quite possibly the retirees, were necessary, despite the constitutional provision that protects such changes.
When asked “what are the limits of pension reform? Where must we stop because of the constitution,” Fahner replied that “the only limits are that we can’t take what’s already been earned. That would be inappropriate and unconstitutional.” Nonetheless, Fahner said that changes going forward can be “frozen” or “changed”; that Chief Legal Counsel to Illinois Senate President John Cullerton and Parliamentarian of the Illinois Senate “Madiar is wrong” about his analysis regarding a current employee’s vested right when he or she enters the pension system. He also said “if we do nothing, everyone is screwed.”
Senger added “SB 512 wasn’t unconstitutional. It wasn’t taking away benefits. We have a system that is failing” and “every time you delay a solution, it becomes costly.” Senger also declared that the employer (school district) should pay the normal costs since the employer makes the contracts, and that “the COLA is the problem” and “should be suspended like in Rhode Island.”
The Chicago Tribune had cited Ingram a few days earlier: “With insolvency looming in as little as 17 years, the head of the state’s largest pension fund is a warning that pension benefits promised to teachers, starting with those already retired, may need to be cut” (Teachers and pension cuts. Chicago Tribune 4 April 2012). Another article by Chris Wetterich in the Springfield’s State Journal Register had quoted Ingram: “What we are saying is that the number is so bad that you have to start having those conversations. The reality is that if you look at the pension math, the single biggest cost is the COLA” (31 March 2012).
The reactionary firestorm was to be expected. Rank-and-file, as well as the IFT and AFCSME, were shrill in their condemnations of Ingram’s sudden and unexplained change. The Illinois Education Association likewise responded but with close connections to the TRS (the president of IEA is also a TRS trustee): “It’s important to understand that the current situation is very serious but capable of being resolved. TRS, SURS, and other state systems can be saved, but we need to understand that it will not be easy or inexpensive."
Meanwhile, Ingram has been eager to make clear that his statements were a warning regarding what would happen as a result of the state’s failure to fund or lessen the funding to the teachers’ pension. Those were, according to Ingram, the reasons for the stress tests conducted by Buck Consultants. In short, his words were being used “out of context.” To make this even more clear, Ingram printed a clarification in the Chicago Tribune’s Voice of the People on Tuesday, April 10 that stated: “Neither I nor the Teachers Retirement System is proposing any changes in member benefits, especially a reduction in the current annual cost-of-living adjustment… It is not our role at TRS to suggest a solution to this problem.”
Nevertheless, in the same editorial, Ingram once again warns that he has told his board that significant changes must occur in order to avoid insolvency, and these changes need come from newly-generated revenue sources. He further said “Any of these significant changes can only be made by the General Assembly.” For the media, Ingram outlined the “possible areas where lawmakers may look for a solution. There are only a few options available, and none are very pleasant to discuss – changes in the cost-of-living adjustment, in member contributions, in retirement age and in the benefit formula, as well as increased revenues through taxes.”
When the question of finding revenue rather than cutting pension benefits was asked, Senger’s immediate response was “giving an ‘over-spender’ [the State of Illinois] more money is not an answer.” Fahner then asked the audience in the forum: “Do you want your taxes to go up?” While no one wants an increase in taxes, and most people want an equitable and fair taxation for all, Fahner reminded the audience that under Illinois’ current tax structure, they [the middle class] would take the brunt of any increase). Bayer countered that Fahner “wants to fix the pensions and roll back $6 billion worth of taxes” on the wealthy and corporations.
When asked “are taxpayers going to take another hit?” Nekritz responded that “we knew that the [income] tax increase wasn’t going to solve the pension problem.” When asked whether the retirement age for current teachers be raised, Senger, Nekritz and Fahner said “yes”; Bayer said “no.” When asked whether the COLA be a part of the pension solution? Senger, Nekritz and Fahner said “yes”; Bayer said “no.” When asked whether the state should pay what it owes, all of them said “yes.”
In seven days, the pension committee will send its recommendations to Governor Quinn. They will not include increases in revenue such as a graduated income tax that has been recommended by the Center for Tax and Budget Accountability, the Center on Budget and Policy Priorities, the Center for Economic Policy and Research, the Institute on Taxation and Economic Policy, the National Conference of State Legislatures, the Chicago Metropolitan Agency for Planning, and United for a Fair Economy, et al.
They will not be the establishment of a broader tax base so rates are “lower in order to minimize the impact…” and because a broader tax base offers “diversification since it spreads the burden of taxation among more payers than a narrow basis does” (National Conference of State Legislatures).
They will not be the taxation of services to increase needed revenue despite the fact that “the tax system in the State of Illinois does not reflect today’s economic realities” (Chicago Metropolitan Agency for Planning) and the State of Illinois taxes less than one-third of the 168 potentially-taxable services (Center on Budget and Policy Priorities).
Moreover, it will not be the elimination of welfare for the rich even though “the State of Illinois is among 10 states in the nation with the highest taxes paid by its poorest citizens at 13 percent” (the Institute on Taxation and Economic Policy), and one of the few states where the top five percent of income earners pay the least amount of sales, excise, property and income taxes because of federal deduction offsets or regressive tax loopholes from itemized deductions, such as capital gains tax breaks and deductions for federal income taxes paid that are coupled with a flat-rate structure (the Institute on Taxation and Economic Policy). They will be suggestions to cut the constitutional benefits of teachers, however.
Saturday, April 14, 2012
LA Port Driver Vote for IBT Union
LOS ANGELES – Amidst jubilant chants of “Yes We Did!” in Spanish and English, a brave group of professional truck drivers who haul brand-name fashion imports celebrated late evening news that they trounced in their closely-watched election to unite as Teamsters, despite their foreign employer’s vicious and expensive year-long campaign to intimidate workplace leaders and suppress their free choice.
The results were 46 – 15 in favor of the union, the National Labor Relations Board (NLRB) announced. The drivers will celebrate their history-making outside of Toll Group’s truck yard at Thursday’s shift change at 4 pm PST along with allies and their counterparts at other companies who also seek to unionize; members of the media are welcome,
710 East G Street, Wilmington.
“Our victory means we are finally getting closer to the American Dream. If we can win, I know other port truck drivers across the U.S. can unite just like we did,” said Orlando Ayala, who has hauled at the Ports of Los Angeles and Long Beach for nearly 10 years. “A voice on the job means management can no longer humiliate us or force us to suffer in poverty while they profit,” added the father of 3, who questioned why Toll created such an exploitive and union-hostile environment for its workforce here, contrary to its practice overseas.
Toll Group is an iconic brand Down Under but the Melbourne-based trucking and logistics carrier has saturated that market and must expand in the U.S. to survive. The $8.8 billion giant freely negotiates with and benefits from its unionized Australian workforce, and does business with U.S. companies with strict responsible contractor policies like Under Armour, making Toll’s top athletic apparel customer the<http://www.change.org/petitions/under-armour-don-t-let-your-trucking-carrier-fire-a-mom-of-three-for-needing-to-pee> target of a current petition on the online activist website, Change.org.
The victory is further being cheered by local and international supply chain workers, organized labor, and community allies as a trailblazing private sector win in a market arena that decimated middle-class jobs when it was deregulated in 1980; port trucking, one of America’s most dangerous industries, became notorious for treating workers as disposable, is rife with health and safety violations and has remained virtually union-free since. “These first-rate truck drivers decided to form their union after being treated as second-class citizens under third-world working conditions for too long,” said Teamsters Vice President Fred Potter and Port Division Director. “Now these courageous employees have inspired other port drivers to fight for good, middle-class jobs at America’s port’s nationwide, and the Teamsters and our coalition are going to be here to help them do it.”“I am ready to fight at all costs with my co-workers, for our families, and for our union next,” said Edgar Sanchez who has been misclassified at the ports for over 16 years. The industry scam endured by Edgar and his fellow truck drivers was the focus of an <open">http://cleanandsafeports.org/blog/2011/12/12/an-open-letter-from-america%E2%80%99s-port-truck-drivers-on-occupy-the-ports/>open letter from drivers that made the rounds on the Internet during Occupy Wall Street protests last December.
The illegal practice has been a focus of a crackdown by the Department of Labor and it was further exposed on <CBSEarlyMorning">http://cleanandsafeports.org/blog/2011/12/02/trucking-industry-exposed-for-%E2%80%9Cripping-off%E2%80%9D-workers-and-taxpayers-department-of-labor-vows-crackdown/>CBSEarlyMorning when industry spokesman delivered a slip of tongue that further substantiated workers are in fact misclassified.
When Toll’s U.S. workers exposed their inhumane and unsanitary working conditions, local management, acting under the direction of top headquarters executive Andrew Ethell, fired back with a range of unethical and illegal tactics to undermine their legal rights to form a union. So egregious were the actions that the regional NLRB could not settle with the company and issued a <formal">http://grimtruthattollgroup.com/files/2012/02/Toll-Consolidated-Complaint.pdf>formal complaint; Toll now faces federal trial.
The company’s horrible working conditions also prompted the International Transport Workers’ Federation (ITF) to step in condemning Toll’s facilities in the US for undermining workers’ rights in such a severe and denigrating way and <calling">http://www.itfglobal.org/news-online/index.cfm/newsdetail/7273>calling for worldwide solidarity measures to be initiated.”Intense support also comes from the <TransportWorkersUnion">http://www.theage.com.au/national/tolls-us-battle-may-go-global-20120304-1uazz.html>TransportWorkersUnion (TWU) which represents 12,000 Toll employees in Australia.
Rank-and-file and union leaders alike have traveled to Los Angeles in solidarity missions, most recently last month to serve as election monitors. Toll responded to the visit by going on a firing spree of workplace leaders.“Toll employees in the U.S. deserve a fair day’s pay for a hard day’s work. In Australia we have negotiated agreements for decent pay, safe working conditions and proper job security for our members at Toll. Our colleagues across the Pacific in the U.S.A. are entitled to the same. This is an issue that has strongly motivated our members across Australia, several of whom travelled to L.A. to witness the substandard conditions which drivers toil under. We welcome this historic vote to organize at Toll,” said TWU National Secretary Tony Sheldon. “We will continue to support for our brothers and sisters in the U.S. until each and every one of them have a strong contract with middle-class wages and safety protections, a proven model that has made Toll so successful.” <http://grimtruthattollgroup.com/2012/04/12/americas-port-truckers-deliver-a-resounding-yes-winning-union-recognition-as-teamsters-in-historic-vote-drivers-coast-to-coast-cite-los-angeles-victory-to-clinch-collective-bargaining-rights/">http://grimtruthattollgroup.com/2012/04/12/americas-port-truckers-deliver-a-resounding-yes-winning-union-recognition-as-teamsters-in-historic-vote-drivers-coast-to-coast-cite-los-angeles-victory-to-clinch-collective-bargaining-rights/>http://grimtruthattollgroup.com/2012/04/12/americas-port-truckers-deliver-a-resounding-yes-winning-union-recognition-as-teamsters-in-historic-vote-drivers-coast-to-coast-cite-los-angeles-victory-to-clinch-collective-bargaining-rights/
The results were 46 – 15 in favor of the union, the National Labor Relations Board (NLRB) announced. The drivers will celebrate their history-making outside of Toll Group’s truck yard at Thursday’s shift change at 4 pm PST along with allies and their counterparts at other companies who also seek to unionize; members of the media are welcome,
710 East G Street, Wilmington.
“Our victory means we are finally getting closer to the American Dream. If we can win, I know other port truck drivers across the U.S. can unite just like we did,” said Orlando Ayala, who has hauled at the Ports of Los Angeles and Long Beach for nearly 10 years. “A voice on the job means management can no longer humiliate us or force us to suffer in poverty while they profit,” added the father of 3, who questioned why Toll created such an exploitive and union-hostile environment for its workforce here, contrary to its practice overseas.
Toll Group is an iconic brand Down Under but the Melbourne-based trucking and logistics carrier has saturated that market and must expand in the U.S. to survive. The $8.8 billion giant freely negotiates with and benefits from its unionized Australian workforce, and does business with U.S. companies with strict responsible contractor policies like Under Armour, making Toll’s top athletic apparel customer the<http://www.change.org/petitions/under-armour-don-t-let-your-trucking-carrier-fire-a-mom-of-three-for-needing-to-pee> target of a current petition on the online activist website, Change.org.
The victory is further being cheered by local and international supply chain workers, organized labor, and community allies as a trailblazing private sector win in a market arena that decimated middle-class jobs when it was deregulated in 1980; port trucking, one of America’s most dangerous industries, became notorious for treating workers as disposable, is rife with health and safety violations and has remained virtually union-free since. “These first-rate truck drivers decided to form their union after being treated as second-class citizens under third-world working conditions for too long,” said Teamsters Vice President Fred Potter and Port Division Director. “Now these courageous employees have inspired other port drivers to fight for good, middle-class jobs at America’s port’s nationwide, and the Teamsters and our coalition are going to be here to help them do it.”“I am ready to fight at all costs with my co-workers, for our families, and for our union next,” said Edgar Sanchez who has been misclassified at the ports for over 16 years. The industry scam endured by Edgar and his fellow truck drivers was the focus of an <open">http://cleanandsafeports.org/blog/2011/12/12/an-open-letter-from-america%E2%80%99s-port-truck-drivers-on-occupy-the-ports/>open letter from drivers that made the rounds on the Internet during Occupy Wall Street protests last December.
The illegal practice has been a focus of a crackdown by the Department of Labor and it was further exposed on <CBSEarlyMorning">http://cleanandsafeports.org/blog/2011/12/02/trucking-industry-exposed-for-%E2%80%9Cripping-off%E2%80%9D-workers-and-taxpayers-department-of-labor-vows-crackdown/>CBSEarlyMorning when industry spokesman delivered a slip of tongue that further substantiated workers are in fact misclassified.
When Toll’s U.S. workers exposed their inhumane and unsanitary working conditions, local management, acting under the direction of top headquarters executive Andrew Ethell, fired back with a range of unethical and illegal tactics to undermine their legal rights to form a union. So egregious were the actions that the regional NLRB could not settle with the company and issued a <formal">http://grimtruthattollgroup.com/files/2012/02/Toll-Consolidated-Complaint.pdf>formal complaint; Toll now faces federal trial.
The company’s horrible working conditions also prompted the International Transport Workers’ Federation (ITF) to step in condemning Toll’s facilities in the US for undermining workers’ rights in such a severe and denigrating way and <calling">http://www.itfglobal.org/news-online/index.cfm/newsdetail/7273>calling for worldwide solidarity measures to be initiated.”Intense support also comes from the <TransportWorkersUnion">http://www.theage.com.au/national/tolls-us-battle-may-go-global-20120304-1uazz.html>TransportWorkersUnion (TWU) which represents 12,000 Toll employees in Australia.
Rank-and-file and union leaders alike have traveled to Los Angeles in solidarity missions, most recently last month to serve as election monitors. Toll responded to the visit by going on a firing spree of workplace leaders.“Toll employees in the U.S. deserve a fair day’s pay for a hard day’s work. In Australia we have negotiated agreements for decent pay, safe working conditions and proper job security for our members at Toll. Our colleagues across the Pacific in the U.S.A. are entitled to the same. This is an issue that has strongly motivated our members across Australia, several of whom travelled to L.A. to witness the substandard conditions which drivers toil under. We welcome this historic vote to organize at Toll,” said TWU National Secretary Tony Sheldon. “We will continue to support for our brothers and sisters in the U.S. until each and every one of them have a strong contract with middle-class wages and safety protections, a proven model that has made Toll so successful.” <http://grimtruthattollgroup.com/2012/04/12/americas-port-truckers-deliver-a-resounding-yes-winning-union-recognition-as-teamsters-in-historic-vote-drivers-coast-to-coast-cite-los-angeles-victory-to-clinch-collective-bargaining-rights/">http://grimtruthattollgroup.com/2012/04/12/americas-port-truckers-deliver-a-resounding-yes-winning-union-recognition-as-teamsters-in-historic-vote-drivers-coast-to-coast-cite-los-angeles-victory-to-clinch-collective-bargaining-rights/>http://grimtruthattollgroup.com/2012/04/12/americas-port-truckers-deliver-a-resounding-yes-winning-union-recognition-as-teamsters-in-historic-vote-drivers-coast-to-coast-cite-los-angeles-victory-to-clinch-collective-bargaining-rights/
Saturday, March 31, 2012
Seattle Transit Workers Action April 4, 2012
Seattle ATU 587 Takes Party Of National Day Of Action For Public Transportation
APRIL 4 2012: National Day of Action for Public Transportation
The Amalgamated Transit Union 587 -- Union of Metro / King County transit workers -- will spearhead a day of action in Seattle to DEFEND PUBLIC TRANSIT. Their theme:
"Don't let your commute get thrown under the bus."
This action, in collaboration with the Seattle Transit Riders Union, begins at 11 AM AT 6TH AND ROYAL BROUGHAM (near Safeco Stadium and the-3 busway). Participants will "occupy a bus" (or buses and trains) and travel to downtown for a rally at Westlake (4th and Pine.) From there participants will leaflet buses. Please join Union transit workers, and bus riders to help defend public transit. This is part of a national day of action called by International ATU, and that includes the demand to STOP THE WAR, AND USE THE MONIES TO FUND PUBLIC TRANSIT AND OTHER VITAL PUBLIC SERVICES.
Across the U.S. public transit has suffered severe cutbacks andlayoffs -- even as gas prices rise, along with the need for expanded bus service. In Pierce and Snohomish Counties, transit service has been cut by more than 25 percent. In King County, fares have SKYROCKETED 80 PERCENT! in 4 years. THE ATTACK ON PUBLIC TRANSIT IS ANATTACK ON THE WORKING CLASS. This is an opportunity to push back. Please help forward and distribute the attached leaflet to your union, co-workers, friends, family. Spread the word. Let's say, TRANSPORTATION IS A HUMAN RIGHT! NO PRIVATIZATION, NO CUTS, NO FARE HIKES, NO EXCUSES! FUNDPUBLIC TRANSIT!
See you Wednesday, April 4, 2012 Organized Workers for Labor Solidarity OWLS@riseup.net
APRIL 4 2012: National Day of Action for Public Transportation
The Amalgamated Transit Union 587 -- Union of Metro / King County transit workers -- will spearhead a day of action in Seattle to DEFEND PUBLIC TRANSIT. Their theme:
"Don't let your commute get thrown under the bus."
This action, in collaboration with the Seattle Transit Riders Union, begins at 11 AM AT 6TH AND ROYAL BROUGHAM (near Safeco Stadium and the-3 busway). Participants will "occupy a bus" (or buses and trains) and travel to downtown for a rally at Westlake (4th and Pine.) From there participants will leaflet buses. Please join Union transit workers, and bus riders to help defend public transit. This is part of a national day of action called by International ATU, and that includes the demand to STOP THE WAR, AND USE THE MONIES TO FUND PUBLIC TRANSIT AND OTHER VITAL PUBLIC SERVICES.
Across the U.S. public transit has suffered severe cutbacks andlayoffs -- even as gas prices rise, along with the need for expanded bus service. In Pierce and Snohomish Counties, transit service has been cut by more than 25 percent. In King County, fares have SKYROCKETED 80 PERCENT! in 4 years. THE ATTACK ON PUBLIC TRANSIT IS ANATTACK ON THE WORKING CLASS. This is an opportunity to push back. Please help forward and distribute the attached leaflet to your union, co-workers, friends, family. Spread the word. Let's say, TRANSPORTATION IS A HUMAN RIGHT! NO PRIVATIZATION, NO CUTS, NO FARE HIKES, NO EXCUSES! FUNDPUBLIC TRANSIT!
See you Wednesday, April 4, 2012 Organized Workers for Labor Solidarity OWLS@riseup.net
Saturday, March 24, 2012
Pension Liars and GOP Myths
So, what are we going to do about those big "fat pensions" collected by public employees?
You know, those retirement benefits that supposedly are threatening to bankrupt state and local governments everywhere. What to do? That's easy. We can make that problem disappear quickly – just like that! We need only realize that the problem simply does not exist, despite the claims by rabid anti-union forces and the many people who they've duped. Here's the basic situation: Anti-union forces are attempting to weaken the public employee defined pension plans that provide employees a specific monthly payment on retirement. The plans cover about five million older Americans, providing money that many drawing benefits very much need to escape poverty and stay off government assistance.
Those receiving the benefits, many at rates granted originally in lieu of pay raises, in turn create more than $358 billion in economic output nationwide and create more than 2.5 million jobs. State spending on pensions amounts to no more than 4 percent of the state budget, on average. In most states, employees must contribute up to 8 percent of their wages to their pension fund, a bit more than private employees contribute toward their pensions. You should also know that, despite what you may have heard, government pension funds are not going broke. They in fact have been growing as Wall Street has been doing better. Those basic facts and others that are often lost amid the anti-pension clamor from those on the political right who would just as soon do away entirely with pensions. But they were laid out clearly by panelists in a forum earlier this year sponsored by the National Public Pension Coalition.
Panelist Dean Baker, an economist who is co-director of the Center for Economic and Policy Research (CEPR), noted the concern that pensions are endangering government services stems from "a crisis that has been invented" by employer groups. Baker said the make-believe crisis stems largely from the 2008-09 market crash. That caused an estimated $800 billion of the $1 trillion shortfall in pension plans, but he said the plans should be able to recoup their losses. But what of the public employees supposedly drawing pensions of $100,000 a year, or even more? As panelists pointed out, they're pretty much make-believe, too. Then how much do they make? In New York, as another panelist, New York State Controller Thomas DiNapoli reported, the average pension, including those of police and firefighters, is just a little over $19,000 a year.
Three-quarters of New York's pensioners overall get less than $30,000 a year, and less than one-half of 1 percent get more than $100,000.
Panel member Janet Cowell, North Carolina's state treasurer, said the average pension in her state is a mere $22,000 a year. She said fewer than 300 retirees get $100,000-plus pensions – "and some of those are basketball coaches."
Rhode Island retiree Dolores Bresette, a voice from the trenches, as it were, told her unfortunately not uncommon story to the panel. She said "I worked for the State of Rhode Island for 37 years and contributed 9 percent of my salary to my pension fund. Now, after years of saving and preparing for my retirement, so much of what I and thousands of other public workers were promised is being taken away." That's because of last November's enactment of a "Retirement Security Act" which, among other things, suspended cost-of-living adjustments for Rhode Island retirees indefinitely."
There are real human implications of the current efforts to dismantle public workers' pension funds", Bresette declared, "and people in Washington and the country need to see that." She and other panelists warned that "in addition to the human implications there are serious social and economic consequences that will develop over the long term if the shift away from defined-benefit pensions continues. Instead of dismantling public employee retirement systems, policymakers should be working to improve retirement security for the private sector workforce.
Edited: for complete article, please go to www.dickmeister.com
(1)http://www.sfbg.com/bruce/2012/03/23/meister-its-not-true-what-they-say-about-pensions By Dick Meister, former labor editor of the SF Chronicle and KQED-TV Newsroom Contact him through his website, www.dickmeister.com, which includes more than 350 of his columns.
You know, those retirement benefits that supposedly are threatening to bankrupt state and local governments everywhere. What to do? That's easy. We can make that problem disappear quickly – just like that! We need only realize that the problem simply does not exist, despite the claims by rabid anti-union forces and the many people who they've duped. Here's the basic situation: Anti-union forces are attempting to weaken the public employee defined pension plans that provide employees a specific monthly payment on retirement. The plans cover about five million older Americans, providing money that many drawing benefits very much need to escape poverty and stay off government assistance.
Those receiving the benefits, many at rates granted originally in lieu of pay raises, in turn create more than $358 billion in economic output nationwide and create more than 2.5 million jobs. State spending on pensions amounts to no more than 4 percent of the state budget, on average. In most states, employees must contribute up to 8 percent of their wages to their pension fund, a bit more than private employees contribute toward their pensions. You should also know that, despite what you may have heard, government pension funds are not going broke. They in fact have been growing as Wall Street has been doing better. Those basic facts and others that are often lost amid the anti-pension clamor from those on the political right who would just as soon do away entirely with pensions. But they were laid out clearly by panelists in a forum earlier this year sponsored by the National Public Pension Coalition.
Panelist Dean Baker, an economist who is co-director of the Center for Economic and Policy Research (CEPR), noted the concern that pensions are endangering government services stems from "a crisis that has been invented" by employer groups. Baker said the make-believe crisis stems largely from the 2008-09 market crash. That caused an estimated $800 billion of the $1 trillion shortfall in pension plans, but he said the plans should be able to recoup their losses. But what of the public employees supposedly drawing pensions of $100,000 a year, or even more? As panelists pointed out, they're pretty much make-believe, too. Then how much do they make? In New York, as another panelist, New York State Controller Thomas DiNapoli reported, the average pension, including those of police and firefighters, is just a little over $19,000 a year.
Three-quarters of New York's pensioners overall get less than $30,000 a year, and less than one-half of 1 percent get more than $100,000.
Panel member Janet Cowell, North Carolina's state treasurer, said the average pension in her state is a mere $22,000 a year. She said fewer than 300 retirees get $100,000-plus pensions – "and some of those are basketball coaches."
Rhode Island retiree Dolores Bresette, a voice from the trenches, as it were, told her unfortunately not uncommon story to the panel. She said "I worked for the State of Rhode Island for 37 years and contributed 9 percent of my salary to my pension fund. Now, after years of saving and preparing for my retirement, so much of what I and thousands of other public workers were promised is being taken away." That's because of last November's enactment of a "Retirement Security Act" which, among other things, suspended cost-of-living adjustments for Rhode Island retirees indefinitely."
There are real human implications of the current efforts to dismantle public workers' pension funds", Bresette declared, "and people in Washington and the country need to see that." She and other panelists warned that "in addition to the human implications there are serious social and economic consequences that will develop over the long term if the shift away from defined-benefit pensions continues. Instead of dismantling public employee retirement systems, policymakers should be working to improve retirement security for the private sector workforce.
Edited: for complete article, please go to www.dickmeister.com
(1)http://www.sfbg.com/bruce/2012/03/23/meister-its-not-true-what-they-say-about-pensions By Dick Meister, former labor editor of the SF Chronicle and KQED-TV Newsroom Contact him through his website, www.dickmeister.com, which includes more than 350 of his columns.
Portugal General Strike, Spain, Italy Next
Anti-Austerity Mass General Strike Takes Portugal, Spain and Italy are Next
Today in Portugal public services and transportation came to a halt, as unions enacted a 24-hour general strike for the second time in two months. The metros in Portugal's largest cities have closed as well as major ports. The strike was called in reaction to austerity measures agreed upon by the government in return for a European bailout. A picket at Sao Bento station in Porto. The bib reads "General Strike." (Jose Coelho/EPA) Demonstrations and rallies are planned for the afternoon in 38 cities and towns across the country. Today's events preclude similar strikes in both Italy and Spain among countries facing European austerity.
Spain's two main unions, the General Workers Union and the Workers Commissions, have called for a general strike on Marc h 29 to protest the government's austerity pus. Italy's largest trade union called for a general strike over labor reforms on Wednesday, in protest of Prime Minister Mario Monti and Italy's austerity. Common dreams staff
* * *Portugal Hit by General Strike Against Austerity (Agence France-Presse): Lisbon, protestors linking actions to other demonstrations around the globe (Photo: Jose Manuel Ribeiro/Reuters) Garbage went uncollected, ports closed, trains stood still, public transportation was disrupted and other public services were affected by the country's second general strike in four months. The metros in Lisbon and Oporto, Portugal's second-largest city, were closed because of the strike, forcing tens of thousands of commuters to find an alternative way to get to work or school. The majority of ports, including the port of Lisbon and Viana do Castelo in the north, were closed, according to the country's biggest union -- the General Confederation of Portuguese Workers (CGTP) -- which called the strike. About two dozen ships were forced to change their routes to go to other ports because of the action, it added. [...]The CGTP, which is close to the Communist Party, called the strike in February to protest against a reform of the labor code that makes it easier to hire and fire workers. It is also angry over government austerity measures such as the elimination of public employees' Christmas and vacation bonuses -- each roughly equivalent to a month's pay.
Italian Union Calls Strike Over Monti's Job Reforms (Reuters): Italy's largest trade union called for a general strike over labor reforms on Wednesday, escalating a confrontation with Prime Minister Mario Monti that will test his resolve to push ahead with plans to transform the economy. After weeks of negotiation, Monti announced late on Tuesday that the time for talking was over and he would press on with plans to overhaul employment protection laws dating back to the 1970s, despite stiff opposition from the left-wing CGIL union. The CGIL proposed an eight-hour general strike to protest the measures, which would allow companies to lay off individual employees for disciplinary or business reasons, saying the changes risked causing massive job losses." This will not be a flare-up which burns out in a day as the government expects and we have a duty to get results before we see years of mass dismissals from companies," the union's secretariat said in a statement. The strike would mark the biggest demonstration against technocrat premier Monti, a former European Commissioner who has already imposed painful cuts and tax hikes and an overhaul of the pension system since taking office in November.
Today in Portugal public services and transportation came to a halt, as unions enacted a 24-hour general strike for the second time in two months. The metros in Portugal's largest cities have closed as well as major ports. The strike was called in reaction to austerity measures agreed upon by the government in return for a European bailout. A picket at Sao Bento station in Porto. The bib reads "General Strike." (Jose Coelho/EPA) Demonstrations and rallies are planned for the afternoon in 38 cities and towns across the country. Today's events preclude similar strikes in both Italy and Spain among countries facing European austerity.
Spain's two main unions, the General Workers Union and the Workers Commissions, have called for a general strike on Marc h 29 to protest the government's austerity pus. Italy's largest trade union called for a general strike over labor reforms on Wednesday, in protest of Prime Minister Mario Monti and Italy's austerity. Common dreams staff
* * *Portugal Hit by General Strike Against Austerity (Agence France-Presse): Lisbon, protestors linking actions to other demonstrations around the globe (Photo: Jose Manuel Ribeiro/Reuters) Garbage went uncollected, ports closed, trains stood still, public transportation was disrupted and other public services were affected by the country's second general strike in four months. The metros in Lisbon and Oporto, Portugal's second-largest city, were closed because of the strike, forcing tens of thousands of commuters to find an alternative way to get to work or school. The majority of ports, including the port of Lisbon and Viana do Castelo in the north, were closed, according to the country's biggest union -- the General Confederation of Portuguese Workers (CGTP) -- which called the strike. About two dozen ships were forced to change their routes to go to other ports because of the action, it added. [...]The CGTP, which is close to the Communist Party, called the strike in February to protest against a reform of the labor code that makes it easier to hire and fire workers. It is also angry over government austerity measures such as the elimination of public employees' Christmas and vacation bonuses -- each roughly equivalent to a month's pay.
Italian Union Calls Strike Over Monti's Job Reforms (Reuters): Italy's largest trade union called for a general strike over labor reforms on Wednesday, escalating a confrontation with Prime Minister Mario Monti that will test his resolve to push ahead with plans to transform the economy. After weeks of negotiation, Monti announced late on Tuesday that the time for talking was over and he would press on with plans to overhaul employment protection laws dating back to the 1970s, despite stiff opposition from the left-wing CGIL union. The CGIL proposed an eight-hour general strike to protest the measures, which would allow companies to lay off individual employees for disciplinary or business reasons, saying the changes risked causing massive job losses." This will not be a flare-up which burns out in a day as the government expects and we have a duty to get results before we see years of mass dismissals from companies," the union's secretariat said in a statement. The strike would mark the biggest demonstration against technocrat premier Monti, a former European Commissioner who has already imposed painful cuts and tax hikes and an overhaul of the pension system since taking office in November.
Tuesday, March 20, 2012
Wall Street is Moral Bankrupt - Phil Angelides
Chair of Financial Inquiry Committee Assails Wall Street’s Continuing
'Breaches of Ethics'
On the very day that Goldman Sachs executive Greg Smith announced his resignation in revulsion over how the firm is callously “ripping their clients off,"
Phil Angelides, chair of the nation’s Financial Crisis Inquiry Commission, expressed his continuing disgust with how Wall Street has become “a casino floor as big as New York, New York,” after wiping away $9 trillion of household wealth “like a day trade gone bad.” Speaking at a Responsible Investment Forum of investors, pension fund managers and union and community leaders, convened in Los Angeles by Heartland Capital Strategies (HCS), Angelides assailed the financial system centered on Wall Street for “becoming a conduit for speculation rather than productive investment.”
Citing HCS as “a clearinghouse for what’s good in investment,” Angelides asserted that four years after the market collapse, “the financial crisis is still metastasizing.”“The ultimate tragedy of the past decade,” he said, “is that we created $13 trillion in mortgage securities—many of which were destructive—rather than deploying that capital in ways to make us a global leader in renewable energy or in rebuilding our infrastructure.”
The forum, the second of four sponsored by HCS in collaboration with the Blue Green Alliance, focused on the need to revitalize the real economy through value-added investments in the nation’s infrastructure and by developing new sources of clean energy. Recalling President Harry Truman’s condemnation of Wall Street financiers as “gluttons of privilege” in their pursuit of power, Angelides said that “widespread breaches of ethics” have continued to drive maldistribution of the nation’s wealth.“
Since May 2009,” he pointed out, “92 percent of the nation’s economic growth has gone to corporate profits and zero to wages” while also noting that we now have the lowest ratio of wages to GDP since the Great Depression. Calling the implosion of financial markets “in many respects a crisis by design,” resulting in large part from the push for deregulation, Angelides averred that the need exists to “remake the contours of our economy, not just restart it.” “There isn’t a better time to talk about how to mobilize capital and create wealth in our economy,” he concluded.
Angelides also moderated a panel of fund managers and pension consultants engaged in making value-added investments in renewable energy and energy efficiency that bring first-rate returns, as well as contributing to the economy and the community at large. Jim McDermott, managing director of the US Renewables Group and formerly the owner of a successful online postage business, explained that in addition to earning solid returns, unlike IT, “renewables touch people in many ways every day: engineering to design them, labor to build them and facilities to sustain them. So they breed a long-term relationship with the community.” He advocated an investment approach that draws on the global best-of-class intellectual properties in tech being developed in American universities, scaling them up for domestic production and exporting these products, as Germany is successfully doing to great advantage.
“When people say that clean tech does not pay, it’s just not true,” he added. “Only those that were too highly leveraged failed.” Ed Smeloff, a project developer for SunPower and former chair of the Sacramento Municipal Utility District, asserted that “clean tech is not a niche market, it is going to be the transformative technology for the remainder of the century, since more greenhouse gases will go into the air in first 20 years of the 21st century than in the entire 20th century.” Public policy has always driven the utility industry, he said, adding that what’s needed now is access to the integrated network of the grid—the high voltage transmission system—as well as “credit worthy off-takers of the system.” “What has enabled the market to take off in the U.S.,” he concluded, “is tax policy for renewables,” which led him to hail the extension of the Investment Tax Credit until 2016.
When Angelides asked if there has been a recalibration of return expectations by Taft-Hartley pension funds, Sarah Bernstein, a principal with the Pension Consulting Alliance (PCA), replied that since the 2008 crisis, “Everybody is lowering their perception of necessary returns. Everybody is looking at risk.” A lively discussion ensued among the 33 participants in the forum about how best to package proposals to investors to ensure their value-added qualities are recognized and compelling in the context of the current trepidation about risk.
John Williams, CEO of Impact Investments LLC, suggested that the goal should be to provide a level of due diligence beyond Taft-Hartley, a protocol that builds the U.N. principles for Responsible Investment into proposals in order to give investors the ability to compare projects, which will encourage them to select those with the most sustainable returns, including the added value of advancing environmental, social and governance principles. Williams said his firm is developing metrics that will make such a protocol available for fund managers and pension trustees alike to use in assessing the value-added components of proposed investments.
'Breaches of Ethics'
On the very day that Goldman Sachs executive Greg Smith announced his resignation in revulsion over how the firm is callously “ripping their clients off,"
Phil Angelides, chair of the nation’s Financial Crisis Inquiry Commission, expressed his continuing disgust with how Wall Street has become “a casino floor as big as New York, New York,” after wiping away $9 trillion of household wealth “like a day trade gone bad.” Speaking at a Responsible Investment Forum of investors, pension fund managers and union and community leaders, convened in Los Angeles by Heartland Capital Strategies (HCS), Angelides assailed the financial system centered on Wall Street for “becoming a conduit for speculation rather than productive investment.”
Citing HCS as “a clearinghouse for what’s good in investment,” Angelides asserted that four years after the market collapse, “the financial crisis is still metastasizing.”“The ultimate tragedy of the past decade,” he said, “is that we created $13 trillion in mortgage securities—many of which were destructive—rather than deploying that capital in ways to make us a global leader in renewable energy or in rebuilding our infrastructure.”
The forum, the second of four sponsored by HCS in collaboration with the Blue Green Alliance, focused on the need to revitalize the real economy through value-added investments in the nation’s infrastructure and by developing new sources of clean energy. Recalling President Harry Truman’s condemnation of Wall Street financiers as “gluttons of privilege” in their pursuit of power, Angelides said that “widespread breaches of ethics” have continued to drive maldistribution of the nation’s wealth.“
Since May 2009,” he pointed out, “92 percent of the nation’s economic growth has gone to corporate profits and zero to wages” while also noting that we now have the lowest ratio of wages to GDP since the Great Depression. Calling the implosion of financial markets “in many respects a crisis by design,” resulting in large part from the push for deregulation, Angelides averred that the need exists to “remake the contours of our economy, not just restart it.” “There isn’t a better time to talk about how to mobilize capital and create wealth in our economy,” he concluded.
Angelides also moderated a panel of fund managers and pension consultants engaged in making value-added investments in renewable energy and energy efficiency that bring first-rate returns, as well as contributing to the economy and the community at large. Jim McDermott, managing director of the US Renewables Group and formerly the owner of a successful online postage business, explained that in addition to earning solid returns, unlike IT, “renewables touch people in many ways every day: engineering to design them, labor to build them and facilities to sustain them. So they breed a long-term relationship with the community.” He advocated an investment approach that draws on the global best-of-class intellectual properties in tech being developed in American universities, scaling them up for domestic production and exporting these products, as Germany is successfully doing to great advantage.
“When people say that clean tech does not pay, it’s just not true,” he added. “Only those that were too highly leveraged failed.” Ed Smeloff, a project developer for SunPower and former chair of the Sacramento Municipal Utility District, asserted that “clean tech is not a niche market, it is going to be the transformative technology for the remainder of the century, since more greenhouse gases will go into the air in first 20 years of the 21st century than in the entire 20th century.” Public policy has always driven the utility industry, he said, adding that what’s needed now is access to the integrated network of the grid—the high voltage transmission system—as well as “credit worthy off-takers of the system.” “What has enabled the market to take off in the U.S.,” he concluded, “is tax policy for renewables,” which led him to hail the extension of the Investment Tax Credit until 2016.
When Angelides asked if there has been a recalibration of return expectations by Taft-Hartley pension funds, Sarah Bernstein, a principal with the Pension Consulting Alliance (PCA), replied that since the 2008 crisis, “Everybody is lowering their perception of necessary returns. Everybody is looking at risk.” A lively discussion ensued among the 33 participants in the forum about how best to package proposals to investors to ensure their value-added qualities are recognized and compelling in the context of the current trepidation about risk.
John Williams, CEO of Impact Investments LLC, suggested that the goal should be to provide a level of due diligence beyond Taft-Hartley, a protocol that builds the U.N. principles for Responsible Investment into proposals in order to give investors the ability to compare projects, which will encourage them to select those with the most sustainable returns, including the added value of advancing environmental, social and governance principles. Williams said his firm is developing metrics that will make such a protocol available for fund managers and pension trustees alike to use in assessing the value-added components of proposed investments.
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