Organized Labor

Mike Theriault, Secretary-Treasurer SFBTC, House Minority Leader Nancy Pelosi, Mike Hardeman of Sign Display 510 in Washington D.C during the Building Trades Department. National Legislative Conference earlier this month.

Construction union leaders met in Washington DC last week to review current federal legislation and meet with their congressional representatives. The Legislative Conference is hosted by Edward Sullivan the General President of the national Building Trades Department, and the new Secretary Treasurer, Sean McGarvey. Conference speakers included AFL-CIO President John Sweeney, Senators John McCain and Arlen Spector; Governors Tom Vilsack of Iowa and Jennifer Granholm of Michigan, New York’s Attorney General Elliot Spitzer, and Congresswoman Linda Sanchez from Los Angeles.

In his keynote address, President Sullivan touched on existing and proposed federal legislation that will have immediate effects on the construction trades unions. He mentioned that the new energy bill would provide jobs, not only in the oil fields but also through the construction of new nuclear power plants. He urged the delegates to stay in touch with their congressional representatives as money is allocated under the $286 billion Transportation Act, to make sure that prevailing wage requirements are enforced.

He pointed to the rebuilding in the Gulf states in the wake of Hurricane Katrina and the successful effort by the building trades to re-instate payment of the prevailing wage after it had been suspended by President Bush. He also urged delegates to press for a well-funded water infrastructure bill.

He advised delegates to question their representatives about pension reform legislation that was passed late last year by both the House and the Senate. The original bill by House member, Republican John Boehner attempts to strengthen employer based pension plans by implementing new rules to minimize under-funding and by providing higher fees to the Pension Benefit Guarantee Corporation.

Governor Granholm

The next speaker, Governor Jennifer Granholm talked a lot about the devastating effects of the global market on Michigan’s economic base and automotive manufacturing. She criticized the Bush Administration for not acting to preserve a level playing field for American workers. She said that we should be exporting products and not jobs and half humorously referred to the sucking sound of jobs leaving the U.S. “as NAFTA and CAFTA give us the Shafta.”

In a suggestion to any political candidate for President in 2008 she said, “if you aren’t talking about fair trade, access to health care, and protecting pensions and investing in the workforce you won’t get elected in the industrial Midwest.” Granholm noted that health care is at the core of many of our problems and that it is making us poor competitors in the global arena. She said that more cars were built in Ontario, Canada last year than in Michigan because of the high cost of health care.

Evan Bayh

The next speaker Indiana Senator Evan Bayh evoked memories of his liberal father from that state, Senator Birch Bayh, who was senator from 1963 to 1981. Bayh noted that the labor force provided the foundation for healthy economic growth. He said that Indiana had raised workers comp. rates and supported the prevailing wage and that, “we need to let workers organize.” Like Governor Granholm, Bayh was concerned with the global market.

By the way Michigan and Indiana are in the center of the nation’s so called ‘rust belt’ which has lost hundred’s of thousands of jobs in manufacturing over the last 25 years. The New York Times reported recently on the plight of General Motors and Delphi workers. Delphi a huge auto parts manufacturer declared bankruptcy last October and is attempting to reduce its payroll by offering buyouts to 13,000 of it’s United Auto Workers employees. On March 22nd GM also offered buyouts to 113,000 of its workers. G.M. announced in February that they would close 12 U.S. factories and cut 30,000 blue-collar jobs by the end of 2008. Both Granholm and Bayh realize that it’s time to invest in our human resources.

Elliot Spitzer

Mr. Sullivan next introduced New York’s Attorney General, Elliot Spitzer as ‘the people’s lawyer and a warrior for workers rights’. In fact, no one has worked harder to protect investors and union pensions than Elliot Spitzer who is now running for Governor of New York. When the stock market crashed in 2001, and was followed by a wave of disclosures of corporate fraud, which has hastened the overheated market’s decline, it was Elliot Spitzer and our own State Treasurer, Phil Angelides who had led the charge against the modern day ‘robber barons’. Spitzer in fact had instituted legal proceedings against companies like Enron and Tyco before the Securities and Exchange Commission acted and even after it was empowered by Sarbanes Oxley. In still another case, Spitzer reported the he had uncovered widespread after hour trading by mutual fund companies and hedge funds that was costing investors and our pension funds billions of dollars.

Spitzer recalled the days immediately after the passage of Sarbanes Oxley when the SEC was run by Wall Street insider Harvey Pitt and when corporate fraud was rampart. The Enron and WorldCom cases were just beginning to come into the light of day. Spitzer commented that when the SEC was revamped by the new pension reforms, Harvey Pitt confided to his Wall Street friends that, “You will see a kinder and gentler SEC.”

Spitzer has been criticized for prosecuting businessmen who are pursuing the American Dream. As he pointed out, the ratio of CEO compensation to the salary of the average worker has climbed from 42 to 1 in 1980 to 530 to 1 in 2002-03. “Where is the equity, the fairness? Who’s dream are they protecting? Most of the tax breaks provided by the Republican Party have gone to the very rich. No party has done so much for so few who need so little.”

“They don’t believe in the mission of government,” he said. “We have to prove that government can invest in America, in jobs, in infrastructure, health care and schools. The Democrats understand that government must level the playing field. We must return to our progressive roots and return to an era when working men and women benefited from a good economy and jobs.”

Mr. Spitzer offered his view of the rule of law saying that, “Nobody is so powerful as to be above the law...and nobody is so powerless as to be beneath the protection of the law.”

Day Two of the legislative conference galvanized the attention of the building trades delegates, with speakers Senator Arlen Specter who is leading the fight for immigration reform, Senator John McCain who may already be running for President and the President of the AFL-CIO John J. Sweeney.

Senator Arlen Specter

The Republican senator from Pennsylvania focused on the immigration reform bill being debated in the Senate. “Senator Ted Kennedy and I are together on the immigration issue and support job protection for American workers when immigrants come in. I support tough employer sanctions for hiring illegal workers.” Senator Specter told the conference that he had been a supporter of Davis Bacon, unemployment compensation, and minimum wage increases for his entire 25 years on Capitol Hill. He said that in return the unions had supported him and were indispensable to his last campaign for re-election. Senator Specter had helped write the immigration bill in the Senate Judiciary Committee as a reasonable alternative to the bill passed by the House. He was quoted in the New York Times, 3/28/06, saying, “We do not want to create a fugitive class in America.”

AFL-CIO President John Sweeney

Given the ongoing issues of disaffiliation, it was a relief to see President John Sweeney escorted to the podium with his usual easy smile and open demeanor. Of course he talked about the need for union solidarity. He said that the AFL-CIO had just budgeted a record $40 million in PAC fund spending for the 2006 elections. He said that we needed to devote more resources to political advocacy and to hold our elected officials accountable.

He mentioned that the AFL-CIO had entered into agreements with over 1,500 state and local union groups whose internationals had disaffiliated, under ‘solidarity charters’ because the local members wanted to remain in the AFL-CIO. The breakaway ‘Change to Win Federation’ represents 5.4 million members and includes the Teamsters, Laborers, Carpenters, Farm Workers, United Food and Commercial Workers and UNITE-HERE. AFL-CIO membership is currently at 9 million. The agreements at the state and local level will bring labor together to work on its common political objectives.

Sweeney also announced the signing of two new charters with independent unions, including the Farm Labor Organizing Committee and the Utility Workers Union. Sweeney also mentioned a new agreement with one of the nations largest unions, the National Education Association.

Sweeney criticized the House immigration bill, saying that it turned workers and immigrants into criminals. In closing John waxed poetic saying that there are two things we need to give our children, “roots based in our faith in God and wings- a good job and decent benefits. The AFL-CIO is committed to providing those wings of hope for working people.”

Senator John McCain

The Republican Senator from Arizona faced an aroused and sometimes hostile audience as he launched into his support for the new Senate bill on immigration. The delegates had definite reservations about the temporary guest worker program that was part of that legislation. McCain commented that, “Immigration is the defining issue for America today. Will we decide to welcome new vitality and new blood or become an exclusionary nation? While we need better enforcement on the border we do not necessarily need a physical wall. A virtual wall outside our urban areas using high tech surveillance technology may be possible. We now have 11 million undocumented immigrants in the U.S. and sending them back to the country they came from is not a viable option. However it may be possible to have them earn their citizenship over a six-year period. They must earn it and get in line behind legal immigrants. We need to address this issue as soon as possible. Some 410 people died in the desert last year looking for a better life in our country.”

With the adjournment of the morning plenary session on Day Two of the conference most of us prepared ourselves for our meetings with our congressional representatives that afternoon. Many of us attended the State Building Trades luncheon at the Washington Court Hotel with a visit from the Democratic Minority Leader in the House, Nancy Pelosi.

Rep. Nancy Pelosi-Democrat, San Francisco

Pelosi wasted no time in attacking the 2006-07 budget priorities of the Bush administration. She talked about a new agenda to be implemented when the Democrats win the election in November, and elect a California Speaker of the House of Representatives.

Pelosi would introduce legislation that would remove the current tax incentives that encourage companies to outsource their work overseas. “We must protect our industrial base,” she said, pointing out that 56 million workers are now subject to outsourcing.

She promised to introduce the ‘Freedom of Choice’ Act which would guarantee workers the right to organize, form a union, and conduct collective bargaining. That bill sponsored by Congressman George Miller is now held up in committee. She estimated that 56 million workers would join a union as a result of this legislation. She promised to stop the assaults on Davis Bacon, and on our apprenticeship programs.

Pelosi promised to improve national security by fully implementing the 9/11 Commission recommendations. She pointed out that first responders, such as police, fire, and federal agencies such as FEMA, are still unable to communicate in real time. In other words their communications systems have not been integrated. Ms. Pelosi said that the Democrats needed to pick up 15 seats in the house to achieve a majority.

Capitol Hill Meetings

Following the luncheon members of the San Francisco and San Mateo Building Trades Councils walked over to the Capitol building for their meeting with Congressman Tom Lantos, now serving his 13th term in the House. The State Building Trades and other delegates also met with Senator Barbara Boxer.

Senator Barbara Boxer

In discussing immigration legislation Boxer noted her opposition to the guest worker program. The House proposal would allow 325,000 temporary guest workers to enter the U.S. each year. Boxer commented that the guest workers would be unskilled, and could take jobs in any industry including construction. She felt the immigrants would compete for jobs with U.S. workers and exert downward pressure on wages. Temporary workers in agriculture are not part of the guest worker program, and are being dealt with separately in a bill by Senator Feinstein.

Responding to questions about Association Health Plans AHPs, Boxer said she opposed them because they provided minimal coverage and were not subject to ERISA requirements. According to the Building Trades Department the House and Senate bills, HR 525 and S 1955 would eliminate State oversight and compete unfairly with employer-union health plans that are subject to reasonable regulation. The AHPs would allow employers to offer bare bones plans that exclude state guaranteed benefits and protections such as access to emergency care and rights to appeal denials of coverage. For example the California legislation, also referred to as the patient’s bill of rights, would be superceded. The House bill, HR 525 passed in July of last year. The Senate version has not yet been brought to the floor.

Congressman Tom Lantos

Several of our building trades leaders including Secretary Treasurers Mike Theriault of San Francisco and Bill Nack of the San Mateo Council met in the Capitol building with our Congressman, Tom Lantos. High on the agenda were the House and Senate proposals for regulating employer pensions. The legislation is necessary to address the impending collapse of traditional employer provided pensions.

Building trades representatives asked Lantos to work to support a reasonable bill that would strengthen our multiemployer pension plans. The pension reform proposals contained in Senate bill 1783 and House bill 2830 are now being discussed in a Senate/House conference. The initial objectives of the legislation were to reduce employer under-funding, with higher plan contributions; to increase transparency in pension reporting on corporate accounting statements by requiring realistic assumptions about interest rate projections and payouts, and to prevent the transfer of obligations to the PBGC. The trick is to balance the need to fully fund future pension obligations without bankrupting the employer or losing the plan to the PBGC with its smaller pension payouts to participants. The current bill for example would make an exception for the airlines allowing them up to 20 years to fully fund their plans rather than the seven-year period being considered for most companies. The current legislation would also increase the annual premiums that companies pay to the PBGC.

The other issue with pensions is that employers are being allowed to arbitrarily renege on their promises. Both Verizon and IBM have recently frozen their traditional pension plans and are offering minimal 401K’s to new employees. The reason offered for cutting benefits is always-global competition.

On Day Three of the Conference delegates we heard from Senator Lincoln Chaffee and Congressmen Ted Strickland, Harold Ford, Robert Andrews, Al Green and Stephen Lynch.

Senator Chaffee called for passage of the Water Infrastructure Financing Act-S1400, which he sponsored. The bill was later amended to include full Davis Bacon coverage but has not yet been brought to the floor of the Senate. The legislation would authorize $38 billion in funding to update the original Clean Water Act. The companion bill in the House is HR 4560, the Clean Water Trust Act 2005. The House bill does not incorporate full Davis Bacon coverage. Senator Chafee noted that there is now a $530 billion gap between what is needed for the repair and reconstruction of our water delivery system and what is being proposed. In meetings with our representatives on capital hill building trades leaders urged support for water infrastructure investments with full Davis Bacon protection.

This review of the conference is not meant to be exhaustive but attempts to cover the more important legislative issues now being proposed in Washington. For additional coverage please go online to www.buildingtrades.org/.