Labor

Fighting City Layoffs, CFL's Gannon Takes Aim At TIFs

Josh Kalven — Mon, 06 Oct 2008 07:23:21 -0700

In response to the news that Mayor Daley's layoffs would largely affect workers in two departments -- Police and Streets and Sanitation -- Chicago Federation of Labor President Dennis Gannon hit back hard over the weekend. Speaking to the Sun-Times, he offered a litany of ideas for how Daley could make up the $425 million shortfall without laying off any city workers, including raiding the mayor's beloved Tax Increment Financing (TIF) accounts:

Gannon suggested that Daley could wipe out the entire $420 million shortfall without any layoffs. His recipe would call for: raising taxes and fees, possibly including the Laborers Union's proposal for a $10 monthly garbage-collection fee; raiding the $500 million Chicago Skyway fund; sweeping money out of scores of tax-increment-financing districts; reducing consulting fees, and having city employees perform services that have been privatized by the city.

"Raise a fee somewhere, raise a tax," Gannon said. "Instead of that, we're gonna cut front-line workers who live in the city and pay taxes.

"What's wrong with the mayor taking $200 million out of the Skyway? It's a rainy-day fund. Well, it's raining, Mr. Mayor. These workers helped everybody survive the North Side flood and picked up the bulk. The same guy who picked up all those downed trees, we're gonna tell him after Christmas, 'Thanks for your hard work. We don't need you anymore.' "

Gannon told the Sun-Times that minorities would bear the brunt of the layoffs and even warned that the Laborers Union is mapping out where the affected workers live -- data that they plan to share with aldermen.

Speaking of TIFs, be sure to check out Adam Verwymeren's latest comic book on the matter: "Where Do TIFs Come From?"

Mark Kirk Flips, Votes To Extend Unemployment Benefits

Josh Kalven — Sat, 04 Oct 2008 13:10:58 -0700

Back in June, GOP Rep. Mark Kirk -- along with five other Republican members of Congress from Illinois -- voted against a Democratic bill to extend federal unemployment benefits by 13 weeks. At the time, Kirk explained that he wasn't against the idea of giving laid-off workers additional unemployment checks, but instead was concerned that the legislation would allow those who had been on the job for as little as two weeks to receive benefits for nine months. Kirk even claimed that by allowing folks with such limited work records to enter the unemployment system, the Democrats had doubled the cost of the bill.

As we pointed out at the time, Kirk's excuse made little sense because it completely overlooked the more strict eligibility requirements laid out by individual states. Indeed, if a worker in Illinois wanted to qualify for federal unemployment benefits for only two weeks worth of work, they'd first have to live for a year-and-a-half on about $4,000. And how much would they then receive from the federal government? Most likely, less than $50 per week.

Furthermore, in contrast to Kirk's claim that these deadbeats would greatly increase the cost of the measure, the Center for Budget and Policy Priorities pointed out that "the share of the additional benefits under the bill that would go to workers with very limited work records is almost surely miniscule."

We bring this up because yesterday Kirk voted in favor of a new bill to further extend the benefit program. I've looked over the language in the measure and see no provision that establishes a minimum employment length. As such, I'd love to hear Kirk's explanation for why he backed this type after referring to it as "crazy" several months ago. (EDIT: Having gone back and double-checked this, it turns out the bill passed on Friday is based off the unemployment benefits language in the FY 2008 Supplemental Appropriations Act, which does include the 20-week minimum requirement. Apologies for the mistake.)

Interestingly enough, the five other local GOP members who twice opposed the bill in June -- Donald Manzullo, Peter Roskam, John Shimkus, Judy Biggert, and Jerry Weller -- also supported it this time around.

Fate Of Agriprocessors Detainees Uncertain

Angela Caputo — Fri, 03 Oct 2008 08:07:24 -0700

The bad news goes on and on for some former Agriprocessors employees who, after nearly five months, are still detained in Florida on criminal charges since being swept up in a federal raid on the Postville, IA meatpacking plant last spring.

Yesterday, the U.S. Labor Department appealed to a federal judge to allow the agency to depose nine men to aid in an investigation of illegal labor practices at the plant. The call for cooperation is a last-ditch effort to pump the men for information before they're deported on October 10. They, along with roughly 131 other former Agriprocessors employees, were sentenced last spring after a judge found them guilty of falsifying work documents.

The Labor Department appears to be building a case around the pay (or should we say lack-of-pay) practices at plant. The raid didn't scare Agriprocessors management into improving it's workplace practices. Instead, a subsequent child labor investigation ensued. Then a wage-garnishing scheme was cooked up to attract new low-wage workers. Testimony from the detainees appears crucial to the Department's ability to bring charges against the company, The Iowa Independent reports:

“The petitioner … is presently unable to bring the action [against Agriprocessors] because additional evidence from employees regarding hours they worked without pay is needed,” Andrea Christensen Luby, attorney for the (U.S. Labor Department) agency, wrote in the motion filed Tuesday.

In question are employment details, including hours worked, wages, job duties, and the availability of protective gear. Should the government choose to use the men as part of an ongoing investigation, it's unclear what their fate would be.

Unions Confront IL Pension Fund About Questionable Investment

Angela Caputo — Mon, 29 Sep 2008 09:58:34 -0700

School custodian Rahmaan Williams is your typical working-class investor. One portion of his paycheck goes directly into his pension fund and another to cover his union dues. Between the two, Williams figures, his financial future is a little more secure.

But it turns out that his investment strategy isn't as harmonious as he thought.

Like 5,000 other state employees here in Illinois who are members of the Service Employees International Union (SEIU), a fraction of Williams' pension contribution is invested in Atria Senior Living -- a nationwide assisted living chain that's come under scrutiny for making big profits off its low-income, elderly residents and union busting. Williams, along with fellow union members, is now calling on his pension fund manager, the Illinois Municipal Retirement Fund (IMRF), to confront the company about its business strategy, which he says is becoming a financial liability.

"If they're here to protect our money, then they should look at how the company is run," Williams said.

Overall, IMRF's investment in Lazard Freres Strategic Realty Investors Fund II -- which now holds Atria as its sole asset -- has lost value since 1998 (see page 26 of their 2008 market manager summary). Williams argues that if Atria employees had the benefits of union protection, such as better wages and affordable health care, the company would perform better and be more prosperous.

"This anti-worker campaign is not only costly and risky for the company, it's an insult to AFSCME [American Federation of State, County and Municipal Employees Union] workers, both active and retired, whose pensions are funding it," wrote Hank Scheff of AFSCME Council 31 in his own appeal for the IMRF board to intervene on behalf of his union's 25,000 active pension contributors.

Officials who oversee the Illinois municipal employee's retirement fund say that they don't have any pull with Lazard. "We are a limited partner in the real estate fund," spokeswoman Linda Horrell said of IMRF's 3 percent stake, which amounts to roughly $31 million. "As a limited partner we have no influence."

"When it comes to our investments, we try to get the maximum returns with the minimum risks," Horrell said of IMRF's responsibility to its 177,000 current contributors.

By 2009, Lazard is set to dissolve the real estate fund that holds Atria. And SEIU's Edgar Hernandez projects that poor management is going to catch up with the firm and make it a less attractive investment for potential buyers. "There are a lot of things that are going to unwind when the partnership goes to sell," he said, adding that it is IMRF's "fiduciary responsibility to intervene."

(Full disclosure: Progress Illinois is sponsored by the SEIU Illinois State Council.)

Unemployment Up Across The Prairie State

Angela Caputo — Fri, 26 Sep 2008 08:05:33 -0700

Illinois' economic outlook got a little worse yesterday with the release of new figures (PDF) showing that unemployment was up in every metropolitan area across the state in August, as compared with the same time last year. The five metropolitan areas with the highest unemployment rates, according to the Illinois Department of Employment Security (IDES):

- St. Louis (IL-Section): 7.6%

- Decatur: 8.3%

- Danville: 8.9%

- Kankakee-Bradley: 9.1%

- Rockford: 9.5%

Here's a statistic that puts the numbers in perspective: Five urban areas are experiencing their highest unemployment rates in 18 years, IDES reports.

Perhaps back in June -- when the state's jobless rate hovered around 5.5 percent -- six Illinois Republicans voted against a bill to extend federal unemployment benefits because they thought unemployment was on the decline.

Instead, it has continued to climb to a statewide average of 7.3 percent. The Prairie State is now in the same league as some nearby manufacturing states, including Ohio, known for their struggling economies.

WBEZ reports that the problem is compounded by the many Illinoisans looking for a second job:

For many people, Wall-Street’s current troubles have not hit home—at least not yet. But plenty of families are feeling economic pressure. Food prices are up and keep climbing. Gas prices are hovering around $4 a gallon in the Chicago area. And those stresses have more job-holders looking for a second income.

Working America: McCain Isn't Working For Us

Adam Doster — Thu, 18 Sep 2008 11:55:46 -0700

On Labor Day, we highlighted the efforts of Working America, the community affiliate of the AFL-CIO that is blitzing working class neighborhoods in battleground states on behalf of Barack Obama this election cycle.

Last night, Talking Points Memo got a hold of the organization's first mailer, which will be delivered to 1.5 million households in Ohio, Pennsylvania, Michigan, and other swings states across the country. It includes testimonials from four working class Americans who argue "McCain's plans will put us all at risk." Check out the full pamphlet here.

"Labor Is"

Josh Kalven — Fri, 05 Sep 2008 15:08:34 -0700

Below is the ad produced by the Chicago Federation of Labor that has been running on local television stations in recent weeks:

When the CFL announced plans for the ad campaign, leader Dennis Gannon drew a direct connection between the PR effort and reports that Mayor Daley is considering laying off some unionized city workers to help trim the Chicago's budget deficit:

"The public needs to know our people are out there, doing this work for the citizens," Gannon said. "People need to know the services will suffer if there are layoffs."

Interestingly enough, Gannon previewed the above ad, as well as a similar radio spot, at one of the Illinois DNC delegation's breakfast meetings last week. As with all the speakers, Mayor Daley introduced Gannon and was sitting barely a foot away from him during his remarks.

Congress Hotel Hosts America's Next Top Model

Adam Doster — Thu, 04 Sep 2008 08:46:50 -0700

Owners of Chicago's Congress Hotel can't pay their employees a living wage, but they sure can play host to some budding models!

For all you aspiring models out there, “America’s Top Model” casting directors are coming to Chicago on Saturday to do a casting call for next season.

From 10 a.m. to 3 p.m. at the Congress Plaza Hotel and Convention Center, 520 S. Michigan Ave.

UNITE-HERE Local 1 is calling on its allies to join the striking workers this Saturday from 9:00 to 11:00 AM. Union organizers have also tried to get in touch with Cover Girl's Marketing Director to warn them about crossing the line, but to no avail. If you'd like to help get their message across, his contact information is below. Otherwise, if you're in Chicago, be sure to stop by the hotel Saturday.

Vince Hudson, Marketing Director for Cover Girl

Office Phone: 410-785-4336
Email: hudson.ve@pg.com

Even On Holiday, Labor Works For Obama

Adam Doster — Mon, 01 Sep 2008 10:28:45 -0700

While there are many struggles ahead, the past year has been a good one for organized labor. Despite an increasingly hostile organizing environment, the rate of union membership rose -- albeit marginally -- from 2006 to 2007, the first such bump in almost 30 years. That means that more workers will have access to higher pay, retirement accounts, medical insurance, and paid leave -- reason enough to celebrate this holiday weekend.

But the movement isn't resting until a we have both a labor-friendly White House and Congress in Washington. Despite some dissention about tactics, the American Prospect's Harold Meyerson explains that unions nationwide are throwing their lot behind Barack Obama in a big way:

The practical effect of the Alliance's semi-defection is too early to gauge. Overall, labor's program for the fall is massive and strategically very smart: Micro-targeting three million labor households in battleground states with a combined worksite, door-to-door, phone, mail, and e-mail campaign on which unions, in and out of the AFL-CIO, will spend a total of between $300 million and $400 million.

The organization Working America is pounding the sidewalks too. With 2.5 million members, the AFL-CIO's "community affiliate" -- which mails workers election-related materials, talks to them on the phone, and sends canvassers to their doorstep -- is storming working class neighborhoods across the country this election cycle. David Moberg has the details:

Working America is one of the brightest new developments for a beleaguered labor movement--giving a boost to political work this fall at a time when traditional union membership has been declining in the long run (despite an uptick last year). After Labor Day, canvassers for the group will try to contact every Working America member at the door with a field-tested, two-pronged message on behalf of Barack Obama. They'll contrast the positions of Obama and John McCain on critical issues, especially healthcare, but they'll also talk personally about why they're working on behalf of Obama. "We will give people information they're not getting," says Karen Nussbaum, the group's executive director,"but we also will communicate the way people personally make their decisions."

It's no surprise why organized labor is jumping behind the Democratic nominee this election. While you can't find one mention of unions on John McCain's website, Obama wants to pass the Employee Free Choice Act and raise the minimum wage. He's also in favor of banning the permanent replacement of striking workers, appointing labor friendly board members to the National Labor Relations Board, and passing the Lily Ledbetter Fair Pay Act. The senator will speak to these issues after walking in Detroit's Labor Day parade this morning. He also released a video statement commemorating the holiday that can be seen here.

For Progress Illinois' past coverage of labor issues, check out the archives here. For more union-related posts this Labor Day, head over to Today's Workplace.