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News and Views You Can UseDisclaimer: Any views, findings, conclusions, recommendations or opinions expressed in this website do not necessarily represent those of the Institute for Labor Studies and Research, its Board, staff or funders. Labor news from around the world CONSUMER PRICE INDEX: MAY 2006 The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5 percent in May, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The May level of 202.5 (1982-84=100) was 4.2 percent higher than in May 2005. The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.5 percent in May, prior to seasonal adjustment. The May level of 198.2 (1982-84=100) was 4.3 percent higher than in May 2005. The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.3 percent in May on a not seasonally adjusted basis. The May level of 117.2 (December 1999=100) was 3.4 percent higher than in May 2005. Please note that the indexes for the post-2004 period are subject to revision. REAL EARNINGS IN MAY 2006 Real average weekly earnings fell by 0.7 percent from April to May after seasonal adjustment, according to preliminary data released today by the Bureau of Labor Statistics of the U.S. Department of Labor. A 0.3 percent decline in average weekly hours and a 0.5 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) were partially offset by a 0.1 percent rise in average hourly earnings. Data on average weekly earnings are collected from the payroll reports of private nonfarm establishments. Earnings of both full-time and part-time workers holding production or nonsupervisory jobs are included. Real average weekly earnings are calculated by adjusting earnings in current dollars for changes in the CPI-W. Average weekly earnings rose by 4.0 percent, seasonally adjusted, from May 2005 to May 2006. After deflation by the CPI-W, average weekly earnings decreased by 0.2 percent. Before adjustment for seasonal change and inflation, average weekly earnings were $559.08 in May 2006, compared with $543.42 a year earlier. LAWSUIT ACCUSES IBM OF NOT PAYING OVERTIME. A lawsuit was filed in federal court Tuesday accusing IBM of denying overtime pay to tens of thousands of workers. The suit, which seeks class-action status nationwide, contends that the company violated federal and state labor laws in California and New York by misclassifying full-time computer installation and maintenance workers as exempt from overtime. See "I.B.M. Accused of Denying Overtime Pay to Workers", at http://www.nytimes.com/2006/01/25/technology/25blue.html?_r=1, by Lisa Alcalay Klug, The New York Times on the Web, Jan 25, 2006. (JRL) Workers belonging to labour unions rose last year SURVEY FINDS INJURIES, PAY VIOLATIONS FOR DAY LABORERS. The first nationwide study on day laborers has found that three-fourths of such workers were illegal immigrants and that more than half said employers had cheated them on wages in the previous two months. The study, based on interviews with 2,660 workers at 264 hiring sites in 20 states and the District of Columbia, found that day laborers earned a median of $10 an hour and $700 month. See "Broad Survey of Day Laborers Finds High Level of Injuries and Pay Violations", at http://www.nytimes.com/2006/01/22/national/22labor.html, by Steven Greenhouse, The New York Times on the Web, Jan 23, 2006. (JRL)
The New York Times Notes AFL-CIO Push for Higher Minimum Wage Love, Labor, Loss AFL-CIO '~Ready to Roll' on Solidarity Charters 'FEDERATION' IS THE NEW 'COALITION.' Seven breakaway unions have founded a new organization, called the Change to Win Federation, to directly rival the AFL-CIO. Leaders of the new federation said they would seek to unionize many of the 50 million workers whose jobs cannot be sent overseas or replaced by machines. Many of those jobs pay poverty-level wages and include janitors, cashiers, nursing home aides and security guards. See "Breakaway Unions Start New Federation", at http://www.nytimes.com/2005/09/28/national/28labor.html, by Steven Greenhouse, The New York Times on the Web, Sep 28, 2005. (JRL) CALIFORNIA GARMET WORKERS CONTINUE FIGHT FOR BETTER CONDITIONS. Since the 1999 passage of California's landmark anti-sweatshop law, rampant violations continue and many workers recover only a small fraction of the money they seek, according to a report released Wednesday. The law was enacted to help workers recover back wages from garment factories and from manufacturers that contract with the plants. The study said the state must do more to force employers to comply with minimum-wage laws. See "More Garment Workers Fight for Wages", at http://www.latimes.com/business/la-fi-garment29sep29,1,1620035.story, by Associated Press, Latimes.com, Sep 29, 2005. (JRL) AFL-CIO Calls for 'New Direction' HUMAN TRAFFICKING HITS HOME IN CALIFORNIA. California governor Arnold Schwarzenegger approved a package of legislation Wednesday intended to crack down on slave rings that force people â€" often poor and illegal immigrants â€" to perform menial and sometimes debasing work in sweatshops, construction and prostitution. The legislation establishes a felony crime of human trafficking, which is a national problem that particularly afflicts California. See "Governor Signs Bills Targeting Slave Rings", at http://www.latimes.com/news/local/la-me-human22sep22,1,1211809.story, by Jordan Rau, Latimes.com, Sep 22, 2005. (JRL) Lesbian Assumes a Top AFL-CIO Role Rhode Island’s Unemployment Rate is Virtually Unchanged in August WAL-MART CONTENDS SWEATSHOP ALLEGATIONS ARE "OPINIONS." It its first response to a lawsuit filed by a labor rights group alleging sweatshop conditions amongst its factories, Wal-Mart claims that the group has a history of presenting "opinions as facts." The lawsuit alleges that oversears Wal-Mart workers were The lawsuit cited workers who said they were kicked and beaten, locked in factories, fired for supporting a union and not paid the minimum wage or overtime. See "Wal-Mart Questions Motives of Lawsuit by Labor Group", at http://www.nytimes.com/2005/09/16/business/16walmart.html, by Steven Greenhouse, The New York Times on the Web, Sep 16, 2005. (JRL) Unite Here takes 450,000 workers out of AFL-CIO WAL-MART ACCUSED OF INTERNATIONAL LABOR ABUSES. A labor rights group filed a class-action lawsuit yesterday against Wal-Mart Stores in which apparel workers in Bangladesh, China and other countries assert that Wal-Mart violated its contractual obligations by not enforcing its code of conduct for overseas contractors. The lawsuit argues that Wal-Mart's code of conduct created contractual obligations between it and thousands of workers employed by contractors who were supposed to comply with the code. See "Suit Says Wal-Mart Is Lax on Labor Abuses Overseas", at http://www.nytimes.com/2005/09/14/business/14walmart.html?adxnnl=1&adxnnlx=11267 14548-EjYlPoPFSHYLzaC5+l5WZQ, by Steven Greenhouse, The New York Times on the Web, Sep 14, 2005. (JRL) >>> UNITE HERE EXITS AFL-CIO. In a move that comes as no surprise to many labor experts, Unite Here has chosen to leave the AFL-CIO. The union of 450,000 workers in the apparel and hospitality industry is leaving the AFL-CIO to join a group of dissident unions that want the organized labor movement to spend more time and money recruiting new members. See "Unite Here Leaves AFL - CIO Over Dispute", at http://www.nytimes.com/aponline/business/AP-Labor-Rift.html, by Associated Press, The New York Times on the Web, Sep 14, 2005. (JRL) THIS LABOR DAY, LEADERS TALKING REBOUND BUT FACING DECLINE. Union leaders are using this year's Labor Day as an opportunity to voice their beliefs that a labor movement resurgance is imminent. Yet the rhetoric of hope is somewhat undermined by a spate of troubles facing the labor movement currently, including a major split in the AFL-CIO, a bruising strike at Northwest Airlines, and pension battles across the country. See "Amid Difficulties, Leaders of Labor See Opportunity", at http://www.nytimes.com/2005/09/05/national/05labor.html?oref=login, by Steven Greenhouse, The New York Times on the Web, Sep 05, 2005. (JRL) >>> ORGANIZATION GIVES WAL-MART WORKERS A VOICE, IF NOT A UNION. Having bee unable to organize Wal-Mart in recent years, American labor unions have helped form a new and unusual type of workers' association to help employees of the retail giant. The Wal-Mart Workers Association, supported by major labor groups and growing by thirty workers a week, seeks to reduce hours and raise wages of Wal-Mart employees. Currently, the organization's main focus has been Florida, but it is actively looking to expand elsewhere. See "Wal-Mart Workers Are Finding a Voice Without a Union", at http://www.nytimes.com/2005/09/03/national/03walmart.html, by Steven Greenhouse, The New York Times on the Web, Sep 05, 2005. (JRL)
WORKERS UNHAPPY WITH ECONOMY, LIVING STANDARDS. A survey conducted by the AFL-CIO has revealed that workers in the United States are dissatisfied with the current economy and fear their standard of living is declining. Forty-three percent said they felt hopeful and confident about achieving their financial goals, down from 70 percent in 1999, the AFL-CIO said, while 54 percent said they were concerned they might not meet those goals. Health care was a leading source of dissatisfaction. See "Workers Say They're Falling Behind - Survey", at http://www.nytimes.com/reuters/business/business-labor-survey.html, by Reuters, The New York Times on the Web, Aug 30, 2005. (JRL) ARE SIMULTANEOUS JOB CUTS AND JOB GROWTH POSSIBLE? U.S. businesses added 207,000 jobs in July, significantly higher than the 180,000 projected by economists. A strong performance by service-sector businesses drove the increase, while the unemployment rate stayed unchanged at 5 percent, as expected. Manufacturers shed 4,000 jobs in July, the fifth straight month that the sector has lost employment. Construction, by contrast, added 7,000 jobs, keeping up a blistering growth pace. See "U.S. Employers Added 207,000 in July, Better Than Expected", at http://www.nytimes.com/2005/08/05/business/05cnd-econ.html?hp&ex=1123300800&en=4 7b710a355dfea89&ei=5094&partner=homepage, by Vikas Bajaj, The New York Times on the Web, Aug 05, 2005. (JRL) Labor Blogs:
Sweeney says disaffiliated unions are directly challenging AFL-CIO... Andy vs. George > http://www.alternet.org/story/23853 > > AlterNet's executive editor counts the ways in which Andy Stern -- the man > responsible for disemboweling the AFL-CIO -- and George W. Bush are like two peas in a pod. OVER A HUNDRED THOUSAND JOB CUTS IN JULY. Though planned layoffs fell seven percent in July from June, employers still announced over one hundred thousand job cuts last month. The number is up 48 percent from July 2004. So far in 2005, a total of 641,245 job cuts have been announced, up 18 percent from the same span in 2004. The automotive industry tops all industries in layoffs with 72,598 expected job cuts through July. See "Job cuts drop but still top 100,000", at http://money.cnn.com/2005/08/03/news/economy/challenger.reut/index.htm, by CNN.com, CNN.com, Aug 04, 2005. (JRL) A Welcome Return to Enforcing Labor Laws http://www.alternet.org/story/23857 The abysmal cases of slave labor in the U.S. are both shocking and terribly mundane....... At AFL-CIO, a splitting issue for the nation's biggest labor ... The AFL-CIO split is bound to bring some tears. The real question ... AFL-CIO Foreign Policy: AFLCIO DEMANDS RAPID WITHDRAWAL FROM IRAQ The AFL-CIO and the Iraq war The AFL-CIO split is bound to bring some tears. The real question ... AFL-CIO split likely to lead to more active efforts at ... Local labor leaders back split from AFL-CIO AFL-CIO Convention Calls for Troop Withdrawal from Iraq AFL-CIO split further complicates confusing labor-political ... WAGES CONTINUE TO STALL--Although the nation's gross domestic product (GDP) rose more than 3.4 percent in the second quarter of 2005, wages and salaries grew by only 2.4 percent, the lowest level on record, and wages continue to lag behind inflation, according to a report by the EPI. With stagnant wages and rising inflation, the only way for workers to expand their paychecks' buying power is to work more hours, the report said. For more on the report, "GDP Picture," visit http://www.epinet.org . >>> LABOR DELEGATES DEBATE EFFECTS OF SPLIT. The withdrawal of the SEIU and Teamsters from the AFL-CIO has led to intense debate, not only amongst the top brass of the labor movement, but down to the delegates on the floor of the AFL-CIO convention and union members across the country. Delegates have been left to ponder whether the division of the labor movement will lead to an upswing in organizing similar to the 1930s, when the CIO was born out of the AFL, or whether a divided union movement will only hasten labor's decline on a national level. See "Labor Debates the Future of a Fractured Movement", at http://www.nytimes.com/2005/07/27/national/27labor.html?adxnnl=1&adxnnlx=1122472 951-7NXz28Cxhbgi3bbBXpZfpg, by Steven Greenhouse, The New York Times on the Web, Jul 27, 2005. (JRL) >>> DISSIDENTS SEE AFL-CIO CHANGES AS TOO LITTLE, TOO LATE. Members of the AFL-CIO have agreed to pass a resolution that gives locals $22.5 million for organizing efforts and mandates a shift from get-out-the-vote campaigns to year-round politicking. The measures are similar to those demanded by the Teamsters and the SEIU before they bolted Monday, taking 3.2 million of the AFL-CIO's 13 million members with them. However, a spokesperson for the dissident unions maintained that the resolutions were "not enough and it's too late." See "AFL - CIO Leaders Pass Resolution on Issues", at http://www.nytimes.com/aponline/business/AP-Labor-Rift.html, by Associated Press, The New York Times on the Web, Jul 27, 2005. (JRL) >>> UNIONS LOOKING TO ORGANIZE MAJOR COMPANIES. A divided labor movement has identified eight large companies it wishes to unionize at some point in the future. The most obvious choice is Wal-Mart, though the company has been vehemently anti-union. FedEx and Verizon have been targeted, in part because some of their competitors are unionized. Labor is looking to Toyota, Honda, or Nissan, all of whom have plants in the U.S. that compete directly with unionized American car makers. Finally, Comcast and IBM are high-tech targets for a labor movement increasingly focused on organizing. See "Union power: 8 companies they want now ", at http://money.cnn.com/2005/07/27/news/economy/unions_targets/index.htm, by Chris Isidore, CNN.com, Jul 27, 2005. (JRL) COSTCO REVOLUTIONIZES LOW-PRICE FOOD INDUSTRY BY ACTUALLY PAYING WORKERS. Costco Wholesale, the nation's fifth-largest retailer, is beginning to look at lot like the 'anti-Wal-Mart' with its good wages and benefits. The discount food chain's fiercest rival, Sam's Club, pays its workers 42 percent less on average than Costco. While Wall Street analysts have warned Costco's owner Jim Sinegal that he is being too generous to employees, Mr. Sinegal has largely shunned their advice. See "How Costco Became the Anti-Wal-Mart", at http://www.nytimes.com/2005/07/17/business/yourmoney/17costco.html?, by Steven Greenhouse, The New York Times on the Web, Jul 18, 2005. (JRL) >>> LABOR, RELIGION JOIN FORCES TO ORGANIZE. Struggling to regain power and prestige for the sagging labor movement, the AFL-CIO has hired more than three dozen aspiring ministers, imams, priests and rabbis to spread the gospel of union organizing across the nation this summer. In an effort to reshape their image, labor leaders want unions to be seen as a dynamic force for social justice, not as a stodgy special interest. Thus, the AFL-CIO is looking to recreate the historic partnership between faith and labor. See "Labor and Religion Reunite", at http://www.latimes.com/news/printedition/la-na-union17jul17,1,6457287.story, by Stephanie Simon, Latimes.com, Jul 18, 2005. (JRL) UNIONS TARGET NEW YORK HOME CARE WORKERS. Two labor organizations and a grassroots advocacy group are seeking to unionize 52,000 home day care providers across the state. The New York City and state teachers' unions, along with community group ACORN, will urge the State Legislature to pass a bill that would enable the workers to unionize. The day care providers look after and educate 3 to 12 children each day at their homes. The groups said some New York City workers earn $19,990 a year. See "Care Providers Need a Union, 3 Groups Say ", at http://www.nytimes.com/2005/07/15/nyregion/15daycare.html?, by Steven Greenhouse, The New York Times on the Web, Jul 15, 2005. (JRL) WORKERS TAKING SECOND JOBS AS WAGE GAP WIDENS. Though Americans' average incomes appear to be on the rise, there is evidence that wages of lower-level employees have not changed in years. While profits are up for many companies, soaring incomes are concentrated only at the highest levels of the workplace; the only substantial income gaines for workers have come from their taking second jobs. For all but the highest-level employees, wages remained static while profits increased 35 percent between 2002 and 2004, indicating a growing wage gap. See "America's wage gap: Profits feed top incomes as workers take second jobs ", at http://www.iht.com/articles/2005/07/14/business/income.php, by Eduardo Porter, International Herald Tribune, Jul 14, 2005. (JRL) JANITORS STILL LOOKING FOR JUSTICE IN L.A. Despite a ten-year effort by labor groups to create awareness about the deplorable conditions Los Angeles janitors face, workplace violations continue. Janitors are denied overtime pay, classified improperly as independent contractors, locked in the stores overnight and forced to work their first two weeks unpaid, based on dozens of interviews and numerous lawsuits and government enforcement actions. See "Among Janitors, Labor Violations Go With the Job", at http://www.nytimes.com/2005/07/13/national/13janitor.html, by Steven Greenhouse, The New York Times on the Web, Jul 13, 2005. (JRL) >>> CLEANING COMPANY SUED FOR SHORTCHANGING WORKERS. Coverall Cleaning Concepts is being sued by workers who bought franchises and claim they were lied to by the company regarding hours of work and monthly pay. A dozen franchisees are suing Coverall, charging it with fraud, breach of contract and failing to pay the minimum wage. They assert that the company took out improperly large commissions and did not have enough customers to supply franchisees. See "Lawsuits Charge Fraud in Cleaning Business", at http://www.nytimes.com/2005/07/13/national/13franchising.html, by Steven Greenhouse, The New York Times on the Web, Jul 13, 2005. (JRL) NHL LOCKOUT SET TO END, ACCORDING TO REPORTS. Newspapers are reporting that the National Hockey League and its players' association have reached a tentative deal on a new collective bargaining agreement that, if finalized, would end a lengthy lockout. The agreement will feature a hard salary cap linked to 54 percent of league revenue, a 24 percent rollback of existing contracts and qualifying offers. It will also include a provision that will limit the salary of any player to 20 percent of the team cap figure in any season. See "Report: NHL Players, League Reach Deal ", at http://www.nytimes.com/aponline/sports/AP-HKN-NHL-Lockout.html?, by Associated Press, The New York Times on the Web, Jul 07, 2005. (JRL) WAL-MART FINED--The Connecticut Department of Labor has fined Wal-Mart $3,300, the maximum allowed by law, for violations of child labor laws. Last February, Wal-Mart agreed to pay a federal fine of $134,540 for previous violations of federal child labor laws in Connecticut, Arkansas and New Hampshire. Connecticut state auditors later found continuing child labor law violations, Connecticut Gov. M. Jodi Rell (R) said. (AFL-CIO) BEER MAKER MAY HAVE FIRED WORKERS UNFAIRLY. A federal court has revealed that brewer Anheuser-Busch Cos. may have to reinstate several employees fired for using illegal drugs at work because the company used hidden cameras without informing the employees' union. The decision sends the case back to the National Labor Relations Board in Washington to determine what, if any, remedies the disciplined employees are entitled to, including the possibility of reinstatement. See "Anheuser May Have to Rehire Fired Workers", at http://www.latimes.com/business/la-fi-anheuser6jul06,1,3310222.story?coll=la-hea dlines-business, by Associated Press, Latimes.com, Jul 06, 2005. (JRL SEIU LOCAL 880 ORGANIZES LOW INCOME WORKERS AND GAINS RESPECT. History was made when Chicago's Local 880, Service Employees International Union earned the right to represent 49,000 low-income child care workers in April. The innovative organizing and lobbying model developed and sustained for over a decade is now being used nationally and serves as a model of what labor must do to reverse its decline in membership. The SEIU is part of the coalition pressing for new AFL-CIO leadership and a stronger commitment to organizing. Later this month the AFL-CIO will be meeting in Chicago. See "Local 880: Labor's new up-and-comer", at http://www.chicagotribune.com/business/chi-0507050162jul05,1,6293452.story?coll= chi-business-hed, by Barbara Rose, Chicago Tribune Internet Edition, Jul 05, 2005. (PVM) NEVER-ENDING UNITED PENSION SAGA CONTINUES; FLIGHT ATTENDANTS MAY STRIKE. In a continuation of the ongoing pension struggle between United Airlines and its employees, the U.S. government Thursday took over the airline's pension plans covering flight attendants and other workers, prompting the union representing the flight attendants to threaten a job action. United has countered that a work stoppage would be illegal. According to a United spokesperson, airline ticket sales have not been hurt by the strike threat. See "U.S. Takes United's Pensions", at http://www.latimes.com/business/la-fi-united1jul01,1,2738695.story?coll=la-headl ines-business, by Times Wire Services, Latimes.com, Jul 01, 2005. (JRL) >>> WAL-MART HOPEFUL THAT 'ALWAYS LOW PRICES' APPLIES TO THEIR LEGAL FEES, TOO. James W. Lynn, a former Wal-Mart executive, has sued the company, accusing it of firing him for being too aggressive about finding workplace violations. Lynn had been in charge of inspecting working conditions in Central American factories, and argues that he was fired for refusing to comply with Wal-Mart's demand that he certify factories in order to get Wal-Mart's goods to market. Wal-Mart officials said Mr. Lynn was not fired for being a forceful monitor, but for violating rules against fraternization; the company does acknowledge that it sent a security official to spy on Lynn. See "Fired Officer Is Suing Wal-Mart", at http://www.nytimes.com/2005/07/01/business/01walmart.html?, by Steven Greenhouse, The New York Times on the Web, Jul 01, 2005. (JRL) >>> REPORT CRITICAL OF LABOR STANDARDS SURFACES. A report that the Labor Department has sought to block for a year finally surfaced this week, harshly condemning labor standards in Central America. While the Labor Department, which commissioned the study, has maintained that the findings are inaccurate and biased, others argue that the report was blocked so that Congress could pass the Central American Free Trade Agreement (CAFTA) without having to consider the generally poor enforcement of labor standards in the region. See "Report Criticizes Labor Standards in Central America ", at http://www.nytimes.com/2005/07/01/business/worldbusiness/01labor.html, by Juan Forero, The New York Times on the Web, Jul 01, 2005. (JRL) ___________________________ STRUGGLING BUSINESSES CONTINUE TO CUT PENSIONS. A new study has found that large companies sharply accelerated freezes and terminations of pension plans last year, steering away from the increasing expense and uncertainty of paying for workers' retirement. About half of the companies that froze pension accruals or terminated plans last year are financially troubled businesses, the study found. The trend has continued into this year, with United Airlines defaulting on its pension plans. Some speculate that companies could abandon pensions all together in the future. See "More Large Firms Freeze, End Pensions", at http://www.latimes.com/business/la-fi-pension23jun23,1,4630097.story?coll=la-hea dlines-business&ctrack=1&cset=true, by Associated Press, Latimes.com, Jun 23, 2005. (JRL) >>> FACTORY OWNER GETS 40 YEARS FOR INHUMANE TREATMENT. In what was the biggest human trafficking case in U.S. history, a former garment factory owner convicted of enslaving, starving and beating his workers in American Samoa was ordered to pay $1.8 million in restitution and sentenced to 40 years in prison. The factory made clothes for J.C. Penny and other retailers before it was closed in 2001 by the National Labor Relations Board and the Department of Labor. The factory owner, Kil Soo Lee, has appealed the ruling. See "Former Factory Owner Sentenced to Prison", at http://www.nytimes.com/aponline/national/AP-Worker-Abuse.html?oref=login, by Associated Press, The New York Times on the Web, Jun 23, 2005. (JRL) Fresh Air U.S. IGNORES CHILD LABOR PROBLEMS--In its new report, "Protecting Working Children in the United States: Is the Government's Indifference to the Safety and Health of Working Children Violating an International Treaty?," the Child Labor Coalition (CLC) took the U.S. government to task for its inaction and questioned its compliance with an international treaty protecting children. Five years after U.S. ratification of the International Labor Organization Convention 182, which called for immediate action to eliminate the worst forms of child labor, the CLC said the government's efforts to correct child labor deficiencies are inadequate. It cited outdated regulations, lax enforcement and the continued exposure of young farm workers to pesticides as major problems. The CLC is a group of more than 40 unions and consumer, human rights, children's and other organizations. For more information, visit http://www.stopchildlabor.org . NYU LOOKING TO SHUT DOWN GRAD UNION. NYU's provost and vice president have proposed that the university stop recognizing its graduate student union, which constitutes the labor movement's only toehold among graduate students at private universities. The administration argues that union grievances had threatened academic decision-making. The leader of the students' union said he and his colleagues would immediately start organizing for recognition again were the group to be shut down. See "N.Y.U. Moves to Disband Graduate Students Union", at http://www.nytimes.com/2005/06/17/education/17NYU.html?, by Karen W. Arenson, The New York Times on the Web, Jun 17, 2005. (JRL) UFW KEEPS ON WINING. The United Farm Workers continued its boycott against Gallo wines by launching a "viral boycott" in the hopes of generating public support for a Web-based campaign to win a more generous contract. The UFW plans to call on sympathetic groups to stop buying all Gallo wines to pressure the wine-making giant to negotiate higher pay and benefits for about 85 Gallo employees and 200 seasonal workers Gallo hires through labor contractors. Gallo said in a statement that it believed the boycott would hurt workers and that the company is eager to reach agreement. State officials who regulate union activity in the fields charged that the UFW has failed to bargain in good faith since its contract at Gallo of Sonoma expired in November 2003. See "Farm Union Goes Online to Launch Boycott of Gallo Wine", at http://www.latimes.com/news/local/la-me-ufw15jun15,1,4436799.story?ctrack=2&cset =true, by Miriam Pawel, Latimes.com, Jun 15, 2005. (JRL) >>> IT'S REPRESENTATION WITHOUT TAXATION FOR SOME COMPANIES. Despite the recent passage of a federal law meant to curb corporate tax evasion, unscrupulous employers are continuing to evade millions of dollars in state unemployment taxes. Companies eager to cut unemployment insurance costs have found new loopholes following closure of the old ones, and many states have been reluctant to step in in the face of opposition from employers. In addition, more employers are "misclassifying" workers as independent contractors instead of employees to avoid paying benefits and wages. See "Unemployment Taxes Evaded", at http://www.washingtonpost.com/wp-dyn/content/article/2005/06/14/AR2005061401485. html, by Albert B. Crenshaw, Washingtonpost.com, Jun 15, 2005. (JRL) NLRB ELECTIONS DENY WORKERS' FREEDOM--The National Labor Relations Board's (NLRB's) union election process is so corrupt it bears almost no resemblance to the democratic process we think of when we use the term "election," according to an independent report. The report, "Free And Fair? How Labor Law Fails U.S. Democratic Election Standards" by University of Oregon professor Gordon Lafer, shows NLRB procedures fail to meet U.S. standards for determining if foreign elections are free and fair. It cites the one-sided advantages employers hold in representation elections, including the ability to squelch workers' free speech rights on the job and employers' use of coercion to convince a worker to oppose a union. The report demonstrates clearly the need for new legislation to level the playing field for employees who exercise their freedom to choose a union, American Rights at Work Chairman David Bonior said. "The system for union recognition is badly broken and profoundly undemocratic. Any reform of existing labor law must begin with this understanding." The AFL-CIO and its allies strongly support the Employee Free Choice Act (S. 842 and H.R. 1696), which would require employers to recognize a union after a majority of workers signs cards authorizing union representation. It also would provide for mediation and arbitration of first-contract disputes and authorize stronger penalties for violation of the law when workers seek to form a union. For a copy of the report, visit http://www.americanrightsatwork.org . For more information on the Employee Free Choice Act, visit http://www.aflcio.org/voiceatwork . APPARENTLY THERE IS A WEALTH GAP IN THE US. Federal Reserve Chairman Alan Greenspan, free market champion and figurehead of the US economy, has declared that the income gap between the rich and the rest of the US population has become so wide, and is growing so fast, that it might eventually threaten the stability of democratic capitalism. In the midst of stangant wages and little if any income growth for the bottom 80 percent of workers, Greenspan's solution lies in better education today to create a flexible workforce for tomorrow. Some analysts, however, disagree that the wealth gap may undermine capitalism. See "Rich-poor gap gaining attention", at http://www.csmonitor.com/2005/0614/p01s03-usec.html, by Peter Grier, , Jun 14, 2005. (JRL) ARE HEALTH CARE COSTS TO BLAME FOR JOB LOSSES? With the GM job cut announcement coming on the heels of United Airlines' bankruptcy and subsequent court action over pensions, many are beginning to wonder whether the cost of providing healthcare in the United States is forcing businesses to close plants and fail financially. In light of United's pension woes, which follow a path similar to that of Bethleham Steel Corp. in 2001, Congress has begun to look at pension and health care reforms for corporations. See "Rising benefits burden ", at http://www.csmonitor.com/2005/0609/p01s01-usec.html, by Ron Scherer, , Jun 09, 2005. (JRL) NEW MODEL NEEDED--Unions around the world must look beyond their own countries and come together to build strategies to counter global corporate trade rules and benefit workers worldwide, AFL-CIO Secretary-Treasurer Richard Trumka told the International Pacific Rim Mining and Maritime Unions Seminar in Long Beach, Calif., May 22. The "American Model" of free trade, which drives down wages and ignores workers' rights, is being exported to the world, he said. To balance oppressive corporate power, Trumka said unions need to create new strategies, such as using shareholder initiatives to democratize and improve corporate governance. WAL-MART'S OWN SHAREHOLDERS QUESTION COMPANY'S ETHICS. Following a series of embarrassing incidents such as a recent fine for employing illegal immigrants and a class action sex discrimination suit, Wal-Mart has come under fire from an unlikely source: it's own shareholders. Some of Wal-Mart's largest investors have written an open letter to the company demanding action, saying its unethical employment practices are hurting its shares. See "Wal-Mart urged to 'clean up act'", at http://news.bbc.co.uk/2/hi/business/4605733.stm, BBC News Online, Jun 03, 2005. (JRL) IMMIGRANT SHOPPING STRIPS OFTEN EXPLOIT WORKERS . Economists, sociologists, immigrant advocates and community groups are voicing concern about widespread wage and hour violations in many businesses that rely on immigrant labor including laundries, restaurants and garment factories. Violations are on such a large scale that no one can effectively monitor them. Immigrant storeowners who are unfamiliar with or unconcerned about wage laws combined with unskilled immigrant workers, both legal and illegal, and a government that is not vigorously enforcing the laws are contributing to the problem. See "Beyond the Bargains, Grievances", at http://www.nytimes.com/2005/06/06/nyregion/06wage.html, by Steven Greenhouse, The New York Times on the Web, Jun 06, 2005. (PVM) YOU SAY TOMATO, I SAY BOYCOTT. Having led a boycott which defeated Taco Bell in a four-year battle for higher prices and better working conditions, Floridian tomato pickers are setting their sights on other giants in the fast food industry. The Coalition of Immokalee Workers has sent letters to executives at McDonald's, Subway and Burger King asking them to follow Taco Bell's lead. It is unclear whether the other fast-food restaurants will capitulate to the coalition's demands for a penny more per pound and protection against farmworker enslavement. See "First, They Took On Taco Bell. Now, the Fast-Food World. ", at http://www.nytimes.com/2005/05/22/national/22tomatoes.html, by Associated Press, , May 23, 2005. (JRL) LOS ANGELES HOTELS CAPITULATE TO UNION. Two Los Angeles hotels agreed to union demands regarding contract expiration dates, dealing a blow to the Los Angeles Hotel Employer's Council, which has been engaged in a yearlong power struggle with Unite Here. A plea has been sent out by the manager of the Wilshire Grand, imploring the council to surrender on the issue of contract length for the sake of the local economy. The negotiations come as part of Unite Here's plan to line up contract expiration dates across the country, so that any strike threat would resonate throughout the national hotel industry. See "Hotels Break Ranks on Union Contract", at http://www.latimes.com/business/la-fi-hotels20may20,1,3400952.story?ctrack=1&cse t=true, by Nancy Cleeland, Latimes.com, May 20, 2005. (JRL) >>> LABOR FEARS COULD HURT AIRLINE MERGER. The proposed merger between US Airways and America West could hit a snag in the form of labor unhappiness. Though both airlines have the same unions representing the pilots and flight attendants, the two have different mechanics unions. There is the possibility that the merger, if successful, could lead to disputes over seniority and assignments. The Air Line Pilots Association would also scrutinize the deal to make sure its workers are protected. See "US Airways and America West Plan to Merge", at http://www.nytimes.com/2005/05/20/business/20air.html, by Micheline Maynard, The New York Times on the Web, May 20, 2005. (JRL)
"reasonable accommodation" for an employee with multiple sclerosis. Ellen Weber was fired after missing 15 weeks of work when her illness flared up. A representative for the Botanic Garden said the institution does not tolerate discrimination. See "EEOC sues Botanic Garden over firing", at http://www.chicagotribune.com/business/chi-0502030314feb03,1,989597.story, by Barbara Rose, Chicagotribune.com, Feb 03, 2005. (SEH) >>> APPEAL GRANTED IN WAL-MART OVERTIME LAWSUIT. Wal-Mart won an appeal of a 1999 federal court ruling that the company violated federal law by classifying pharmacists as salaried employees, thus denying them overtime pay. It is estimated that the cost of unpaid overtime could reach up to $140 million. The judged who ordered a new hearing said that federal labor regulations allow employers to adjust salaries based on economic conditions and the evidence in the case needs to be more carefully examined. See "Wal-Mart Wins Appeal in Overtime Ruling", at http://www.nytimes.com/aponline/business/AP-Wal-Mart-Lawsuit.html, by Associated Press, The New York Times on the Web, Feb 02, 2005. (MJN) FEDERAL GOVERNMENT FACING EMPLOYMENT SHORTAGE. The federal government will need to fill more than 37,500 security and law enforcement-related jobs in the next two years. The government is facing an employment shortage because many baby boomers are retiring and there is reluctance among recent college graduates and other job seekers to pursue careers with the federal government. The government also expects to hire more than 25,700 health and medical workers over the two-year period, along with more than 23,800 workers with expertise in engineering and the sciences. See "Study: Feds Facing Employment Shortfall", at http://www.nytimes.com/aponline/national/AP-Federal-Jobs.html, by Associated Press, The New York Times on the Web, Feb 02, 2005. (MJN)
2002 17.9% 2003 17.5% 2004 17%
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