Showing posts with label Unionism. Show all posts
Showing posts with label Unionism. Show all posts

Tuesday, May 1, 2012

MAYDAY 2012: The Ongoing and Crucial Importance of the Labor Movement in the United States



Sotheby's locked out its professional art handlers despite record breaking profits and the most successful quarter in the company's 267 year history. Now, valuable pieces of art are at risk as Sotheby's uses inexperienced, temporary workers to handle art once taken care of by veteran art handlers of 40 plus years.

Tell the Whitney Museum: Cut Your Ties With Sotheby's!

All,

This is a very important and necessary struggle that deserves our collective support. Please respond to the urgent request below by signing the petition and passing it on to others. Thank you...

Kofi


Begin forwarded message:

From: Chris Tysh
Date: April 25, 2012


Dear friends,

The art handlers at Sotheby's have been locked out since August 1, 2011. They have lost their medical coverage, their source of income and are a fighting a corporation bent on crushing the union. please support the workers by signing the petition and circulating it as widely as possible. Sotheby's must end the lock out now!

regards,
Chris




Dear Friend,

Imagine you have proudly served your employer for years. Imagine that in 2010 your employer had its second-best year in its 268-year history. Imagine that your company made so much money (over $680 million in profit) that your CEO rewarded himself with a nearly $3 million dollar bonus--bringing his total compensation to almost $6 million.

And now imagine that despite all of that, your company has kicked you and your coworkers out onto the street, cut off your family medical coverage, replaced you with new workers, and even after 8 months, refuses to bring you back to work until you agree to sign a contract that will completely destroy your job security and your right to collectively bargain a contract.

This is what is happening right now to 42 art handlers at Sotheby’s auction house. These workers, the majority of whom are people of color, desperately need their jobs back. All they are asking for is a fair contract that ensures a decent living for future generations of art handlers.

Please sign this petition to lend your voice in support of these workers, and to ask the Whitney Museum to stand up for socially responsible practices in the art world.

The Whitney Museum has accepted sponsorship money from Sotheby’s and has ignored pleas to cut ties to the anti-worker auction house.

A public pledge from The Whitney would not only help these workers and their families, but it would send a message to the art world that racial and economic fairness are just as valuable as the masterpieces regularly handled by these workers.

Please sign our petition* asking The Whitney Museum to take a stand for justice by vowing to not do any business with Sotheby’s until the auction house ends the lockout and signs a fair contract with the workers.

Thank you for your support!

In solidarity,

Workers for Justice in the Arts

SothebysBadForArt.com


*when signing the petition please list your title and organization if applicable!


Julian Tysh
Organizer
Teamsters Local 814




http://www.sothebysbadforart.com/content/

In 2010, Sotheby’s sales increased by 74 percent to $4.8 billion. And recently, Sotheby’s reported its most profitable quarter in the company’s 267-year history.

Despite record profits and growth, Sotheby’s refuses to negotiate a fair contract with its art handlers. Instead of recognizing and rewarding the contribution these workers have made to the company’s success, Sotheby’s has locked out its professional art handlers, kicking them into the street with no paycheck, while outsourcing their jobs to temporary workers. Meanwhile, Sotheby’s rewarded its CEO by nearly doubling his annual salary to almost $6 million.

Is Sotheby’s putting irreplaceable and fragile pieces of art at risk? Auctioneers may sell the art, but art handlers are responsible for the transportation, preparation and display of each piece. Some of the locked out art handlers have more than 40 years of experience protecting art that sells for as much as $100 million. Replacing these individuals with temporary workers is enough to make anyone scream.


http://www.teamster.org/content/teamsters-sothebys-bad-art




TEAMSTERS: SOTHEBY'S IS BAD FOR ART
August 26, 2011
Teamsters, Community Members Protest Sotheby's Worker Abuses


PRESS CONTACT:

Leigh Strope

lstrope@teamster.org
202-497-7766

(New York, N.Y.) – Hundreds of Teamster members and supporters protested outside Sotheby's Manhattan showroom to educate the company’s clients about the lockout of its art handlers today. Protesters held banners and signs that read, “Sotheby’s: Bad for Art” and “Sotheby’s: Stop the War on Art Workers,” while distributing leaflets.

After the most profitable year in the history of the company, auction house Sotheby’s locked out its longtime, dedicated employees on Aug. 1 while in the middle of contract negotiations. Those employees handle artwork and antiques valued at hundreds of millions of dollars. The company replaced its longtime, dedicated union employees with unskilled replacement workers.

“Sotheby's hired Jackson Lewis, one of America's most notoriously union-hostile law firm, to sabotage our contract talks. Jackson Lewis specializes in helping New York employers destroy permanent, professional jobs by bringing in a temporary workforce with high turnover,” said Jason Ide, President of Teamsters Local 814, which represents the 43 locked-out workers. “New York can’t afford to lose more good jobs, and art patrons need to know that outsourced art handlers at Sotheby’s aren’t destroying their treasures.”

“Sotheby’s has joined the growing ranks of companies that abuse their workers despite making hundreds of millions in profit. The Teamsters will always stand up for working people, and we are here to tell Sotheby’s that when they act like a corporate bully, we will fight back,” said Teamsters General President James P. Hoffa.

“New Yorkers need to know that these Sotheby’s workers—these experienced and dedicated art handlers who are responsible for protecting priceless works of art—are being treated unfairly,” said George Miranda, Teamsters International Vice President and President of Teamsters Joint Council 16 in New York. “Replacing experienced art handlers with outsourced workers is a bad way to handle New York’s fine art.”

When Sotheby's experienced the most profitable quarter in its 267-year history, it rewarded its top management royally. Sotheby's CEO Bill Ruprecht’s salary almost doubled in 2010 to $6 million. In several bargaining sessions since the Aug. 1 lockout, there has been little movement from the company to settle the contract.

“We are responsible for shipping, receiving, unpacking, assembling, and installing exhibitions of artwork and antiques valued in the millions of dollars,” said Julian Tysch, a locked-out Sotheby's art handler. “With profits over $100 million in the last quarter alone, I don’t understand why Sotheby’s would make such a bad decision to outsource this sensitive work and kick us to the curb for no reason.”

Founded in 1903, the Teamsters Union represents more than 1.4 million hardworking men and women in the United States and Canada. Visit www.teamster.org for more information.




The Origins of May Day: A Story of Chicago, the First Labor Movement and the Bombing That Divided Gilded Age America

Transcript
May 1, 2006

AMY GOODMAN: We are joined in the studio by James Green, Professor of History and Labor Studies at the University of Massachusetts, Boston, author of a new book called Death in the Haymarket: A Story of Chicago, the First Labor Movement and the Bombing that Divided Gilded Age America (2006). We welcome you to Democracy Now!

JAMES GREEN: Good morning. Happy May Day!

AMY GOODMAN: It’s good to be with you. Let’s stay in Chicago, where our last guest was, Jorge Mujica. They have major plans for today. But it all began here 120 years ago.

JAMES GREEN: Yes, it did. 120 years ago, thousands of workers and their families were marching through the streets of Chicago. It was a Saturday. Everyone left work, because in those days people had to work on Saturday. They were working a ten- and twelve-hour day. Most of these people were immigrants, and as your last interviewee just said, they were protesting as immigrant workers, as well as as people who were U.S. citizens and wanted to be U.S. citizens.

AMY GOODMAN: Where were these immigrants from?

JAMES GREEN: These were immigrants mostly from Germany, from Bohemia, what is now Czechoslovakia [Czech Republic and Slovakia], from France, all different parts of Europe, and this was a city where they worked in enormously large factories and found that they had been in years of depression and wanted to shorten the workday.

AMY GOODMAN: Talk about this period, 120 years ago. Put it in the historical context of the Civil War, of Abraham Lincoln.

JAMES GREEN: Right. Well, this was a period when the United States was still living with the memory of the Civil War. Many people had fought in the Civil War. And the question was whether African Americans, who were free people, would have their rights and whether now other people, who were so-called free labor, would also have their freedom. And they defined that as the eight-hour day, as getting some freedom from the long arm of the job.

It was also the period when American industrial capitalism was booming. The largest corporations in America were being created then, and yet people in the United States were thinking these were bad organizations, that they could be stopped, that somehow they could create an economy that was run by local people, run by workers themselves. The things that we think were inevitable in the 20th century didn’t seem so in 1886.

AMY GOODMAN: When Abraham Lincoln was assassinated, his body was brought to Chicago.

JAMES GREEN: Yes, yes. My book begins on May Day, but it’s May Day, May 1st, 1865, when Lincoln’s body comes back to Chicago, who is a great hero of all the people and all the classes, and Chicagoans stand unified in grief that May Day. And my project in the book is to explain how in 19 years all that came apart, and people became so divided from one another.

AMY GOODMAN: Well, talk about that, because it’s also the history of labor in this country.

JAMES GREEN: Yes. There was really no labor movement in 1865 to speak of. But what happened was, workers — many of them immigrants — felt the need to create one, partly because employers felt that there was a — they were going to freeze wages, keep wages the way they were, that any increase in wages would be a loss in profits, and they were not going to allow the workday to decrease. So people organized the labor movement, and when they did that in 1877, they faced terrible, terrible violence. About 30 people were killed in Chicago by the Chicago police. And that sets the city down a road of tension, of struggle, that leads directly to Haymarket.

AMY GOODMAN: It’s interesting, today there is a debate over whether to boycott, to rally, to protest, what the protest should look like. And people are doing all different things throughout the country. The same thing was happening more than a hundred years ago.

JAMES GREEN: Yes, the resonance in this is amazing. You know, I’m a history professor, and I tell my students, history doesn’t repeat itself, but you have to wonder when you look at what’s happening today, because the labor movement was divided then, too. The main organization, the Knights of Labor, said, "Don’t go on strike, let’s talk to employers. Don’t boycott, let’s appeal to the American people, let’s appeal to the legislature." But the immigrant and the community-based groups and the radical groups, the anarchists in Chicago, were all for taking direct action and had very little faith that the legislature would do the right thing, unless the people in the streets forced them to.

AMY GOODMAN: And so, explain in this 19-year period how we come to May Day, 1886, who the key players are, both on the corporate side, the Chicago powers that be, and the activists who were organizing workers.

JAMES GREEN: Well, first of all, the employers and legislature had really decided that they were against an eight-hour law. Illinois had been the first state to pass one, and the employers simply refused to obey it. So that was the background of the labor movement saying — a wing of the labor movement saying we have to really compel employers to concede. And, in fact, all during the spring of 1886, employers were conceding, just as you see people today closing down, like your guest, and accepting the reality that they needed these workers, and if they would come back for eight hours a day, they would have them. So, as the May Day appeared that first time in 1886, it looked as though everything was going to proceed peacefully. Employers were conceding, but behind the scenes people were getting their backs up.

AMY GOODMAN: I also would like you to lay out the media landscape, media absolutely critical today, the most powerful institutions on earth. Back then, also extremely critical in shaping people’s perception of labor that was organizing.

JAMES GREEN: Yes, it’s fair to say the daily press — and there were eight dailies in Chicago at the time — were universally hostile to the strike, to any form of direct action, very, I think anti-immigrant as well. And so, the workers had to create their own press. There was a daily newspaper in German published, Die Arbeiterzeitung [The Workers’s Newspaper], that reached 20,000 people. So the workers had to create an alternative media. Then, of course, when the violence began, the media was really responsible for shaping public opinion in all the events that occurred afterward.

AMY GOODMAN: Who was in charge of, for example, the Chicago Daily Tribune?

JAMES GREEN: The Chicago Daily Tribune was edited and published by a man named Joseph Medill, who was arguably the most powerful and influential journalist in the United States, and he had the ability to really shape what business opinion and what legal opinion in Chicago was. And he played a tremendous role in this. It’s really hard to underestimate it.

AMY GOODMAN: And would you say it was a paper of the business community?

JAMES GREEN: Yes, it announced itself as the paper of the businessman. And so they were very much opposed to the eight-hour day and very determined to identify radicals in the movement and in effect to kind of bait the movement by saying it’s led by revolutionaries, when in fact it was a broad mass-based effort.

AMY GOODMAN: Karl Marx also played a role here.

JAMES GREEN: Well, Karl Marx died in 1883, but his followers — there were many German followers of his in Chicago among the cigar makers and others, and they believed in what he and Engels wrote, that the only way for workers to get power was to create a mass-based labor movement that included all the workers of the world and that eventually this kind of movement could take over and create a cooperative economy that they called communism.

AMY GOODMAN: But hadn’t Marx and Engels brought their organization to New York, to the United States?

JAMES GREEN: They did. There was at the time something called the International Working Peoples Association, which was way ahead of its time, in terms of seeing the unity of workers as extending across boundaries and national lines. And the people in Chicago were devoted followers of the International Working Peoples Association.

AMY GOODMAN: And he was also a close follower of the Civil War and of the Emancipation Proclamation, of what happened to slaves as they were freed.

JAMES GREEN: Interestingly enough, Karl Marx wrote in English for the New York Tribune during the Civil War. Interesting. And he saw the Civil War as the most important event in world history, that not only did it end slavery and liberate black people, but it created an eight-hour movement, and Marx and Engels really looked to the United States, to the U.S. workers, as leading the world struggle for justice and freedom.

AMY GOODMAN: We’re going to break. When we come back, I want to ask you about Albert and Lucy Parsons. I want to talk about what happened after May Day, May 1, 1886, what really shaped the modern day labor movement in this country. I want to talk about the killings of May 5th. I want to talk about the riot. This is Democracy Now! We’re talking to James Green, Professor of History and Labor Studies at University of Massachusetts. His book is Death in the Haymarket: A Story of Chicago, the First Labor Movement and the Bombing that Divided Gilded Age America.

[break]

AMY GOODMAN: I’m Amy Goodman, as we talk about the history of May Day, 120 years ago today, May 1, 1886. Our guest is James Green. Death in the Haymarket is his book, A Story of Chicago, the First Labor Movement and the Bombing that Divided Gilded Age America. Again, welcome, and as we continue with the story. May Day, 1886, there is a mass uprising in Chicago.

JAMES GREEN: Right, and a tremendous euphoria and people in the streets and celebrating, because they called it their "Emancipation Day," actually, because it appeared that all of this would take place peacefully, and it was a great empowerment moment for the immigrants who had come here and hadn’t yet started to vote. This was their vehicle almost for asserting their definition of Americanism, and unfortunately something happened on May 3rd that led to tragic consequences.

There were pickets at the McCormick Harvester plant, they called it the Reaper Works. They produced farm implements. There were strike breakers. There was a lockout going on there. Their workers protested the lockout. There was a fight. Chicago police intervened massively, and several workers were killed, several unarmed workers, so the anarchists in Chicago — and I have to tell you a little bit about them — they were very active, very well-organized in Chicago, led by Albert and Lucy Parsons. They were people from Texas, not from Germany. Albert Parsons was from East Texas. He met Lucy there, who was a woman who had grown up in slavery and had become a free person, and they were married in Texas and had to flee there, because they were fighting for black rights after Reconstruction, and then they were dodging the Ku Klux Klan.

AMY GOODMAN: And they were an interracial couple.

JAMES GREEN: And they were an interracial couple and radicals, who believed — in those days being radical meant you supported the 13th, 14th and 15th Amendments in Texas. That was radical, and it could cost you your life.

AMY GOODMAN: And Albert Parsons ran a press.

JAMES GREEN: He ran a press that supported the Black Freedom Movement of the time, and he lost all of his former friends and was, you know, couldn’t sleep in the homes of white people. So he had already stepped outside of the mainstream before he left Texas. They came to Chicago in 1873 in the midst of a great depression, and as a result of their experiences there, particularly in the Great Uprising of 1877, when the Chicago police shot people in the streets, they became revolutionaries and called themselves anarchists by 1886. Parsons was a very, very good organizer. He was probably one of the key people in the whole eight-hour movement in Chicago, and so was his comrade August Spies, who was the man who edited this daily German newspaper, this anarchist newspaper.

AMY GOODMAN: And where had August Spies come from?

JAMES GREEN: He was from the forests of Germany. He grew up in a relatively privileged family background, and he, too, came to America, and what he saw here radicalized him actually, and also hearing speeches of people talking about the evils of capitalism, as they experienced. They were both rather independent men, tradesmen. Parsons was a printer. Spies was an upholsterer, and yet they identified themselves with the cause of the masses of immigrants in the city of Chicago. So when they heard about this killing by the police, they called a rally the next night on May 4th in the Haymarket Square, which is where workers had always gathered for political events, and they wanted it to be a peaceful rally. Everything so far had been peaceful in the eight-hour strikes, and, indeed, the rally was peaceful. The mayor of Chicago came and said, "I don’t hear any talk of throwing bombs. I don’t hear any threats."

AMY GOODMAN: In fact, Albert Parsons wasn’t even going to be there, right? He had been somewhere else.

JAMES GREEN: Right, he was planning to go somewhere else, and, in fact, he wasn’t even expecting trouble, so he brought Lucy and his two children, Albert, Jr. and Lulu, and later on, in the defense, they said, "Well, how could a man be advocating violence with innocent people around?" And so, the rally was winding down. It was about 10:30 in the evening. It started to rain. In fact, Albert and Lucy left the rally for the warmth of a nearby saloon, and just as the rally was winding down, a large force of police marched on the square where the rally was taking place.

AMY GOODMAN: Haymarket Square.

JAMES GREEN: Haymarket Square, about 176 police. The police captain had actually disobeyed the orders of the mayor, who said, "The rally is peaceful. There’s no need to disperse it." The police captain acted on his own, marched right up to them and said, "You must disperse," and the speaker said, "But we are peaceful." And he said, "You must disperse anyway." And as the speaker was coming down from the wagon, someone — and to this day, we don’t know who it was — threw a bomb that landed into the ranks of the police. One officer was killed immediately. Six others later died. The police were panicked, of course, almost hysterical. They’d never expected anything like this, began firing, probably shot, you know, each other, shot people in the crowd, and in the end, seven police died and at least three of the demonstrators. Many, many people were wounded, and this was the tragic, violent Haymarket Riot and had enormous consequences for what happened in labor history afterwards.

AMY GOODMAN: Explain.

JAMES GREEN: Well, it set off hysteria. Nothing like this had ever happened before in peacetime America. There had been horrible losses of life in battlefields, but in the middle of a city — there had been many riots, many demonstrations, many citizens had died, but never any police, so this was a shocking event, and it also sort of triggered off all the fears that many Americans had, people born here, of this massive number of immigrants who lived around them. A majority of the people in Chicago were foreign-born, so there was great deal of anxiety about that, and this attack on the police by what was assumed to be an anarchist, or today would be called a terrorist, really set off a kind of anxiety that the United States had not experienced before and nation’s first red scare. So people were rounded up; newspapers were suppressed; people’s homes were searched without warrant, and the anarchists, ten anarchists, were arrested and tried for the bombing.

AMY GOODMAN: The role of the paper in the anti-immigrant hysteria, and again, to this day, you don’t know who did this.

JAMES GREEN: Right, right. Well, the newspapers —- I quote them at length, and it will make your hair stand on end to see what they said about immigrants then, because there were no holds barred, and so these were -—

AMY GOODMAN: Do you see similarities with today?

JAMES GREEN: I do, although I think people today are being a little more careful about the overtly racist — I mean, there were all kinds of racist things in the papers about Germans and Czechs. You know, I mean it wasn’t just the color of people’s skin. It was that they were foreign, and they were threatening, and they were un-American, and so as soon as the bombing occurred, it didn’t matter whether they found the actual perpetrator. Someone was going to pay for this. And the Chicago papers — and the New York Times was even more extreme, actually —- said, "Somebody has to hang for this," and ultimately four anarchists did, even though the evidence doesn’t place them at the crime scene, doesn’t really put the bomb in any of their hands. They were the victims of the -—

AMY GOODMAN: Talk about the people who went on trial and the four men who hanged.

JAMES GREEN: Right, eight people were indicted, anarchists, all workers, all organizers, seven of them immigrants, were indicted not for — no one was accused of throwing the bomb, but having knowledge of a conspiracy that led to the bombing. Later this was regarded as an unprecedented kind of trial where people could be not only accused of being accessories, but sentenced to death, as seven of them were, for having knowledge, and later on it was said that they were sentenced as much for what they had said as what they did, and ultimately four of these men were hanged. One of them, Louis Lingg, committed suicide, "cheated the hangman," as the anarchists said, committed suicide on death row in Chicago.

AMY GOODMAN: Who was Louis Lingg?

JAMES GREEN: Louis Lingg was a young German anarchist, was the most overtly radical and militant of the anarchists. He actually was making bombs. He wasn’t at Haymarket, so it wasn’t him who threw the bomb. People were preparing for street warfare, and so that was enough for the press and the jury, the fact that people were preparing for this and saying this might be necessary. It didn’t really matter that they had actually done it, and ultimately Albert Parsons, August Spies, George Engel, and Adolph Fischer are all hanged, and they become known around the world, even to this day, as the Haymarket Martyrs, because after the execution takes place, it’s celebrated in America by all the press, but around the world, people believe a great injustice has been done, and people died — really these are the first "martyrs for the cause of industrial freedom," as Eugene Debs put it.

AMY GOODMAN: How did Parsons get connected? You said he had gone off to a saloon with his wife and kids.

JAMES GREEN: Right, he was really tried, I think, because he was the most important leader of the anarchist movement and the labor movement in Chicago. He wasn’t even present during the bombing. There was hardly anything to link him to it. In fact, he fled the city, and his defense lawyer persuaded him to come back and said, "There’s no way you can be convicted of this crime, because you had nothing to do with it," but in fact, he was, and he was sentenced to death. He was offered clemency by the governor, saying, "If you sign a recantation, you can save your life and spend the rest of your life in prison," and he refused.

AMY GOODMAN: And Spies?

JAMES GREEN: Yes, Spies was there at the time and was accused of being connected directly with the bombing, but there was a trial, sort of the trial of the century, and there was a tremendous amount of contradictory testimony indicating that he really didn’t have anything to do with actually throwing the bomb.

AMY GOODMAN: Can you talk about how their language, how their speeches, their writings were used against them?

JAMES GREEN: Yes, well, they believed that it was simply a matter of time before the police and militia — the businessmen had their own militia, by the way —- would intervene in one of these demonstrations and strikes -—

AMY GOODMAN: Wait, on that "by the way," what do you mean the businessmen had their own militia?

JAMES GREEN: The militia in Chicago and other cities were privately raised armed forces. You could fund your own militia company, and the interesting thing in Chicago is the workers, in reaction to this, formed their own militia, which were outlawed by the State of Illinois.

AMY GOODMAN: Pinkerton came from Chicago?

JAMES GREEN: Pinkerton was based there, so Chicago was really an armed camp. That’s the only way to put it, and it looked like something very seriously violent was going to happen. So Spies and Parsons said, ’You’d better be ready. You’d better have arms. By the way, the Constitution says you have the right to bear arms, and you’d better make bombs, and guess what? There’s no law against that either.’ So they were prepared to really go to war. They had been fighting the Pinkertons in the streets, and so this was a very volatile situation.

AMY GOODMAN: What do you mean they had been fighting the Pinkertons? Who were the Pinkertons?

JAMES GREEN: Well, the Pinkertons were private police that were hired by the employers who wanted to beef up their security, and the Pinkertons had actually killed people in Chicago. They were also remembered as the ones who hung the Molly Maguires, the Irish miners who were regarded as being innocent of the crime that they committed, so it was almost an armed conflict situation that they were preparing for.

AMY GOODMAN: Allan Pinkerton had established the company and hired veteran soldiers?

JAMES GREEN: Veteran soldiers and people who were out of work to go in and be informers and to be really hired gunmen and really to protect strike-breakers. That was their main job, because the employers weren’t sure they could always count on the police. Police were immigrant workers themselves, and sometimes they said, "Well, you know, we are not intervening here." That was part of the problem in Chicago at first.

AMY GOODMAN: So, you had these militias. You also had the police. How did they stand in relation to the militias?

JAMES GREEN: Well, at first the police were under the control of the mayor, who was pro-worker, pro-union, and you had situations where strike-breakers would be brought into plants, and the Chicago police would say, "Well, it’s not our job to protect them. If you want to bring them in, that’s your business." But something happened about a year before Haymarket, and the mayor lost control of the police, and a new captain came in who really wanted to do what the businessmen wanted, which was to prevent strikes, to back up lockouts, to prevent rallies, and so, you know, there’s clearly a situation where trouble is going to take place in Chicago and has to do with this shift in the use of police and the fact that you have Pinkertons and militia in the streets.

AMY GOODMAN: Can you talk, Professor Green, about the day that the men were hung?

JAMES GREEN: Yes. This was November 11, 1887, and people around the world knew that for a long time that these men would be sentenced to death. But something happened in the Cook County Jail which was quite extraordinary, was that the anarchists on the gallows seemed to be choreographing their own death scene, and they gave these speeches, which in some ways sound like they could come from a Shakespeare play or something like that. And August Spies said, "You may silence us now, but our memory will survive us." And Albert Parsons’s last words were, "Fighting for free speech even at the last breath." And when they died, when they were executed, the people in the room, who were all witnesses who wanted them to die, were kind of stunned and saddened, according to the newspapers, about this. So almost immediately, people in Chicago said, "Well, maybe something was done here that was wrong," and that was certainly true around the world.

AMY GOODMAN: And Lucy Parsons?

JAMES GREEN: Lucy Parsons lived on, carried on the struggle until 1942. The struggle for her really was to preserve her husband’s memory and the memory of the cause that he died for, and in the end she — her last May Day is in 1941. She is an 88-year-old woman. She’s blind, and she’s going through the streets of Chicago on a C.I.O. union parade on a float, and she became a kind of a living saint at the end of already life for the new labor movement coming to Chicago, unionizing the stockyards and the steel mills, and there was a real connection between that and what had happened before.

AMY GOODMAN: And how did the Haymarket killings and the hangings of the four men shape the modern-day labor movement?

JAMES GREEN: Well, I think that initially it had a very negative impact on the American Federation of Labor, the mainstream. The labor movement wanted nothing to do with the memory of these men. In fact, that’s one of the reasons why May Day wasn’t celebrated here, and instead Labor Day became the national holiday, rather than the international holiday. But somehow — I try to explain this in the book — the memory of these men wouldn’t die. It kept being recreated by people in the labor movement who wanted a broader movement, wanted a labor movement that would go into the streets, wanted a labor movement that would strike, even if it was against the law, wanted a labor movement that would use boycotts, and so that’s why their memory keeps getting revived.

AMY GOODMAN: Is there a monument to them in Chicago?

JAMES GREEN: Well, there is. There’s a cemetery, Waldheim Cemetery, a non-denominational cemetery, outside of the city — the mayor wouldn’t let them be buried in the city of Chicago — which has become a kind of international shrine, and not only are the Haymarket anarchists buried there, but 69 other people of the left, including Emma Goldman and Elizabeth Gurley Flynn, are buried there, but nothing exists in the city of Chicago, except a new monument, which is not to the police and not to the anarchists, but to the fragility of free speech, and you have to go there to see it, because it’s an abstract group of figures that are supposed to represent what happened in Haymarket as a kind of national tragedy.

AMY GOODMAN: Last comments on this May Day, where millions are observing this day by honoring immigrants, standing up for immigrant rights around the country.

JAMES GREEN: Well, it does appear as though what goes around comes around, in a way, that people are feeling the need to go into the streets to do — to take extraordinary action and to do it as part of an international community of workers. That’s what was important about May Day of 1886 is that people were demonstrating not only as U.S. citizens, but as citizens of the world, the larger world community of workers. And that’s what I see happening today, because, of course, in Indonesia and the Philippines, people are demonstrating, and they are here, too, and using some of the same tactics, the boycott, the staying away from work, that were really began in 1886.

AMY GOODMAN: And for people to remember that going back then is where we got the eight-hour day.

JAMES GREEN: Yes, that’s where it started, and people had to sacrifice their lives for what took many, many years. Not until 1938 did the struggle finally succeed.

AMY GOODMAN: I want to thank you for being with us, James Green, and for writing this book, Death in the Haymarket: A Story of Chicago, the First Labor Movement and the Bombing that Divided Gilded Age America.

Wednesday, June 15, 2011

Where is the National Movment for Jobs and Justice in the United States Today?

http://truthout.org/print/2785

All,

Where is the organized national movement for Jobs and Justice? And where are the mass organizations needed to formally coalesce and systematically carry out such an important mission? And what is "the left" doing concretely to help bring about and develop such a movement? And when are we going to stop talking and complaining and start organizing? Only the answers to these questions really matter at this point...

Kofi

Why Washington Isn't Doing Squat About Jobs and Wages
Sunday 5 June 2011
by Robert Reich
Robert Reich's Blog
Truthout


Tony Harrington waits in line to talk with potential employers at a job fair, which drew more than 250 people, in Bloomington, Minn., May 2, 2011. (Photo: Craig Lassig / The New York Times)

The silence is deafening. While the rest of the nation is heading back toward a double dip, Washington continues to obsess about future budget deficits. Why?

Republicans don’t want to do anything about jobs and wages. They’re so intent on unseating Obama they’d like the economy to remain in the dumps through Election Day. They also see the lousy economy as an opportunity to sell Americans their big lie that government spending is the culprit — and jobs will return if spending is cut and government shrinks.

Democrats, meanwhile, don’t want to admit the recovery has stalled. They worry such talk will further undermine consumer confidence or spook the bond market. They don’t want to head into the election year sounding downbeat. And they don’t think they have the votes for anything that will have much effect before Election Day anyway.

But there’s a third reason for Washington’s inaction. It’s not being talked about — which is itself evidence of the problem.

The unemployed are politically invisible. They don’t make major campaign donations. They don’t lobby Congress. There’s no National Association of Unemployed People.

Their ranks are filled with women who had been public employees, single mothers, minorities, young people trying to enter the labor force, and middle-aged men who have been out of work for longer than six months. You couldn’t find a collection of people with less political clout.

Women who had been teachers, public health professionals and social workers have been hit hard. These jobs continue to be slashed by state and local governments. Public schools alone accounted for nearly 40% of the nation’s total public sector job losses in the last year. From March 2010 to March 2011, women lost 214,000 public sector jobs, compared with a loss of 115,000 public jobs by men.

Unmarried mothers are having a particularly difficult time getting back jobs because their work was heavily concentrated in the retail, restaurant and hotel sectors. Many of these jobs disappeared when consumers reduced their discretionary spending, and they won’t come back in force until consumers start spending more again.

According to a new report by the California Budget Project, the recession erased more than half the jobs single mothers in California had gained from 1992 to 2002. The result has been a drop in the share of unmarried mothers in jobs, from 69.2% in 2007 to 58.8% in 2010. Unmarried mothers who still have jobs are working fewer hours per week than before.

Blacks also continue to be hard hit. Their unemployment rate here in California reached 20% this past March, up 5% from a year ago. That’s more than double their rate before the downturn. Some of this is because of the comparatively low education levels of many blacks, and their weak connections to the labor market. Some is due to employer discrimination. Blacks were among the last hired before the recession and therefore among the first to be let go in the downturn. That means they’ll be among the last hired as the economy recovers.

Many young people who have never been in the job market are unable to land a first job. Employers with a pick of applicants see no reason to hire someone without a track record, particularly those without much education. Unemployment among high school dropouts is hovering around 30%. Even recent college graduates are having a much harder time than usual finding a job. Many are settling for jobs that don’t ordinarily require college degrees, which pushes those with less education even further back in the line.

Older workers who have lost their jobs are at the greatest risk of continued unemployment. Employers assume they aren’t as qualified or reliable as those who are younger and have been working more recently. According to research by the Urban Institute, once you’re laid off, your chance of finding another job within a year is 36% if you’re under the age of 34. But your odds drop the older you get. If you’re jobless and in your 50s, your chance of landing another job within the year is only 24%. Over 62, you’ve got only an 18% chance.

What do these jobless have in common? They lack the political connections and organizations to get the ears of politicians, and demand policies to spur job growth.


http://www.nytimes.com/2011/06/02/business/economy/02jobs.html?WT.mc_id=BU-D-I-NYT-MOD-MOD-M204-ROS-0611-HDR&WT.mc_ev=click&pagewanted=all

All,

Forget all the self serving and blustery political rhetoric blowing in from Washington by either the Democrats or the Republicans. THIS is the very UGLY REALITY that is paralyzing the nation...and YEAH BUDDY...President Obama's administration and the Democratic Party BETTER do something about it VERY SOON or both THEY AND US are burnt toast come November 2012...TALK IS CHEAP...We need "Deeds, Not Words"...

Kofi

http://www.nytimes.com/2011/06/02/business/economy/02jobs.html?WT.mc_id=BU-D-I-NYT-MOD-MOD-M204-ROS-0611-HDR&WT.mc_ev=click&pagewanted=all

ECONOMIC MEMO

Employment Data May Be the Key to the President’s Job
By BINYAMIN APPELBAUM
June 1, 2011
New York Times


WASHINGTON — No American president since Franklin Delano Roosevelt has won a second term in office when the unemployment rate on Election Day topped 7.2 percent.

Seventeen months before the next election, it is increasingly clear that President Obama must defy that trend to keep his job.

Roughly 9 percent of Americans who want to go to work cannot find an employer. Companies are firing fewer people, but hiring remains anemic. And the vast majority of economic forecasters, including the president’s own advisers, predict only modest progress by November 2012.

The latest job numbers, due Friday, are expected to provide new cause for concern. Other indicators suggest the pace of growth is flagging. Weak manufacturing data, a gloomy reading on jobs in advance of Friday’s report and a drop in auto sales led the markets to their worst close since August, and those declines carried over into Asia Thursday.

But the grim reality of widespread unemployment is drawing little response from Washington. The Federal Reserve says it is all but tapped out. There is even less reason to expect Congressional action. Both Democrats and Republicans see clear steps to create jobs, but they are trying to walk in opposite directions and are making little progress.

Republicans have set the terms of debate by pressing for large cuts in federal spending, which they say will encourage private investment. Democrats have found themselves battling to minimize and postpone such cuts, which they fear will cause new job losses.

House Republicans told the president that they would not support new spending to spur growth during a meeting at the White House on Wednesday.

“The discussion really focused on the philosophical difference on whether Washington should continue to pump money into the economy or should we provide an incentive for entrepreneurs and small businesses to grow,” said Eric Cantor, the majority leader. “The president talked about a need for us to continue to quote-unquote invest from Washington’s standpoint, and for a lot of us that’s code for more Washington spending, something that we can’t afford right now.”

The White House, its possibilities constrained by the gridlock, has offered no new grand plans. After agreeing to extend the Bush-era tax cuts and reducing the payroll tax last December, the administration has focused on smaller ideas, like streamlining corporate taxation and increasing American exports to Asia and Latin America.

“It’s a very tough predicament,” said Jared Bernstein, who until April was economic policy adviser to Vice President Joseph R. Biden Jr. “Is there any political appetite for something that would resemble another large Keynesian stimulus? Obviously no. You can say that’s what we should do and you’d probably be right, but that’s pretty academic.”

More than 13.7 million Americans were unable to find work in April; most had been seeking jobs for months. Millions more have stopped trying. Their inability to earn money is a personal catastrophe; studies show that the chance of finding new work slips away with time. It is also a strain on their families, charities and public support programs.

The Federal Reserve, the nation’s central bank, has the means and the mandate to reduce unemployment by pumping money into the economy.

As financial markets nearly collapsed in 2008, the Fed unleashed a series of unprecedented programs, first to arrest the crisis and then to promote recovery, investing more than $2 trillion. The final installment, a $600 billion bond-buying program, ends in June.

Now, however, the leaders of the central bank say they are reluctant to do more. The Fed’s chairman, Ben S. Bernanke, said in April that more money might not increase growth, but there was a growing risk that it would accelerate inflation.

Congress charged the Fed in 1978 with minimizing unemployment and inflation. Those goals, however, are often in conflict, and the Fed has made clear that inflation is its priority. Fed officials argue in part that maintaining slow, steady inflation forms a basis for enduring economic expansion.

Eric S. Rosengren, president of the Federal Reserve Bank of Boston, said in a recent interview that the Fed had reached the limits of responsible policy.

“We’ve done things that are quite unusual. We’re using tools that we have less experience with,” Mr. Rosengren said. “Most of the criticism has been that we’re being too accommodative. That is a concern that we have to put some weight on.”

Heather Boushey, senior economist at the Center for American Progress, a liberal research group, said that the Fed was being too cautious about inflation and too callous about joblessness.

“We have a massive unemployment problem in this country right now. It is festering. It’s not good for our economy. It’s not good for our society. And we have the tools to fix it,” she said. “We certainly need to be concerned about what happens down the road, but shouldn’t we first be concerned about getting the U.S. economy back on track?”

Ten presidents have stood for re-election since Mr. Roosevelt. In four instances the unemployment rate stood above 6 percent on Election Day. Three presidents lost: Gerald Ford, Jimmy Carter and George H. W. Bush. But Ronald Reagan won, despite 7.2 percent unemployment in November 1984, because the rate was falling and voters decided he was fixing the problem.

The Obama administration hopes to tell a similar story.

“We have undertaken some of the biggest policy actions to create jobs that any administration has ever done,” said Jason Furman, deputy director of the National Economic Council, which advises the president on economic policy. Mr. Furman said that the economy was still benefiting from last year’s tax cuts, and from the dollop of federal stimulus spending that Democrats pushed through in 2009.

The White House is pursuing a number of smaller initiatives, like persuading China to buy more American goods and services; increasing business confidence in the health of the economy, to spur new investment; and striking a deal with Republicans to overhaul corporate taxation.

It is also pushing to renew federal financing for transportation projects with an important twist: The six-year plan would be front-loaded so that $50 billion would be spent in the first year.

But Christina Romer, who headed the president’s Council of Economic Advisers until fall 2010, said in a recent speech at Washington University in St. Louis that no part of the government was addressing unemployment with sufficient urgency or hope.

“Urgency, because unemployment is a tragedy that should not be tolerated a minute longer,” she said. “And hope, because prudent and possible policies could make a crucial difference.”



Jackie Calmes contributed reporting.

Tuesday, March 15, 2011

The Fight For Unions and Democracy in Wisconsin Is A National Fight That We Must Win!

http://blog.buzzflash.com/node/12480

All,

An inspiring example of what it's really going to take nationwide in the very near future to actually fight for and bring about real Democracy in this country...FOR REAL...Stay tuned...

Kofi


The Dream Team in Madison: Unions, Progressives and Young People Jubilantly Celebrate Democracy, 100,000 Strong

Submitted by BuzzFlash on Sun, 03/13/2011 -. Guest Commentary

By DAN DIMAGGIO FOR BUZZFLASH AT TRUTHOUT

I headed to Madison from Minneapolis with a couple of friends for Saturday's massive rally against Scott Walker and the Republican legislature's move to do away with collective bargaining for public sector workers.

When we arrived at 11am, there were already tens of thousands of demonstrators surrounding all sides of the Capitol, watching the "Tractorcade" of farmers showing their support for workers' rights. The numbers only kept growing throughout the four hours I spent at the rally, as a constant procession of marchers, ten-people wide, circled the Capitol all day. Estimates put the crowd at over 100,000, the biggest demonstration in Madison yet.

Who were these 100,000-plus people? I saw thousands of teachers and plenty of their students; hundreds of autoworkers; members of just about every union imaginable: Teamsters (chanting "2-4-6-8, Walker sucks!"), laborers, boilermakers, social workers, service employees, dozens of fire fighters in uniform, sheriffs, and immigrant rights' activists. The crowd ran the full gamut in age, from babies dressed in union t-shirts to an elderly woman standing next to her wheelchair holding my favorite sign: "84-year old union thug."

There were thousands of these homemade signs, more than I've seen at any protest since the anti-war demonstrations in February and March of 2003. The right would have the rest of the country believe that this is a tightly controlled mobilization, manipulated by the union "bosses" to defend their own power and privileges. But these signs prove otherwise. They are always an indication of a real grassroots movement, one which has touched the hearts of everyone in attendance. They reflect the participants' anger as well as the creativity and bitter sense of humor of Americans (another one of my favorites read: "Dear Scott, Thanks for all your help. Love, Satan").

One of the best speeches of the day came from populist agitator Jim Hightower, who told the crowd, "They get to thinking they're the top dogs and we're the fire hydrants. But I think they're gonna find out there's a lot more power in a fire hydrant than in a few pissing dogs." He expressed the national significance of the Wisconsin struggle: "Because you stood up, people in Ohio, in Michigan, in New Jersey, in Indiana, all across the country, are standing up. Wisconsin is the spark that's igniting a new democracy movement all across America!"

This message was echoed in a moving speech by actress Susan Sarandon, who said, "Wisconsin is the front line in the war to restore democracy ... Wisconsin is the wakeup call for all of America in the 21st century, building upon the legacy of unions which brought dignity to working people - factory workers, teachers, firefighters, hospital workers, nurses, visible, invisible, who literally make this country. The Constitution gave no right to work less than 12 hours a day, no right to a living wage, no right to safe working conditions. Workers had to organize, go on strike, defy the law, defy the courts, to create a movement which won the 8-hour day and caused such a commotion that Congress was forced to pass a minimum wage law, Social Security, unemployment insurance, and the right to assemble and collectively bargain."

This is what's at stake in Wisconsin. The Kochs want to roll back history to a pre-New Deal era of unchecked corporate power. As one sign in Madison put it, "It's daylight savings tonight. Don't forget to turn your clock back 50 years." The right has spent the last 30 or 40 years laying the foundations for these attacks. They've developed a powerful conservative juggernaut made up of think tanks, media outlets, PR strategists, and fake grassroots organizations like the Tea Party.

Can this juggernaut be stopped? If Wisconsin has shown Americans anything, it's the depth of the opposition to right-wing politics. Wisconsin is another reminder that there is nothing innately conservative about the American working class, though it also shows that we are being badly out-organized by the well-funded right-wing attack machine. But the foundations have been laid for a potential resurgence of the left.

Where to now in Wisconsin? At the rally, the overwhelming emphasis seemed to be on the efforts to recall eight Republican state senators who voted for the bill, with petitions circulating and Democratic Party and union activists signing up volunteers for the recall effort. While these efforts have a reputation for losing steam, the outrage in Wisconsin and the historic protests are a hopeful sign that they may succeed, which would send an even stronger message to any legislators elsewhere considering similar bill.

There were also calls being circulated for the labor movement to implement its resolution in favor of a general strike now that the budget bill has gone through. This resolution was passed by Wisconsin's South Central Federation of Labor, a coalition of 97 unions, and recently support for this tactic voiced by the president of Madison's firefighters' union. But at Saturday's rally calls for a general strike seemed mainly limited to the youthful socialist organizations and radical labor groups like the Industrial Workers of the World, scattered on the fringes of the demonstration (although having played important roles throughout, including in the occupation of the Capitol and most recently the student walkouts on Thursday and Friday). Judging by the outpouring of workers and their enthusiasm at Saturday's rally, an organized general strike might very well succeed. But strikes - let alone general strikes - have become a lost weapon in labor's arsenal, with 2009 and 2010 two of the lowest years on record in terms of number of major work stoppages.

Still, at the end of the day, everyone has to return home and turn on their televisions, run by the innately anti-labor corporate media. Here is where much of the battle for public opinion is waged, as the right deploys its vast wealth into shrewd anti-union ads developed by Karl Rove-aligned Crossroads Grassroots Policy Strategies. I couldn't help but think, as I watched Amy Goodman and her small crew film Democracy Now in front on the Capitol, of just how tragic it is that the labor movement has yet to develop its own television station (run by Amy, of course!), or to even help fund the expansion of unionized websites like Truthout. The working people of Wisconsin were out in force on Saturday, expressing themselves in their thousands of homemade signs - don't they deserve a voice in the media?

Regardless, we can all take heart from the events in Wisconsin, which might just herald a progressive offensive in the years ahead, after so many years of a one-sided right wing class war. As Jim Hightower put it, "My message to you today is that it's not enough to be progressive - we've been progressive long enough - we've gotta become aggressive!" And thankfully, we've got some 84-year old union "thugs" on our side.

Wednesday, February 23, 2011

The Insidious Role of the Koch Brothers and Other Wealthy Capitalists in Attacking and Trying to Destroy Public Sector Unions

Left, Robert Caplin For The New York Times; Dave Williams/Wichita Eagle, via Associated Press
David H. Koch, left, and Charles G. Koch have long used their wallets to promote fiscal conservatism and combat regulation.

Fred R. Conrad/The New York Times
Paul Krugman

http://www.nytimes.com/2011/02/21/opinion/21krugman.html?_r=1&emc=eta1

All,

Once again Paul Krugman eloquently identifies what's really at stake in the current pitched battle between the public employee unions and the new draconian Republican governor in Wisconsin (and by extension the fights taking place in over 40 other states in the country who are also currently facing massive budget crises). If only the President and the inept and opportunist Democratic Party generally had the political courage, intellectual clarity, ideological insight, and simple bedrock commitment to real social and economic change on behalf of the masses of the poor and workingclass people in this country that Krugman has. But that's like wishing for the sun to come out at night at this point...

Kofi


OP-ED COLUMNIST
Wisconsin Power Play
By PAUL KRUGMAN

February 20, 2011

New York Times


Last week, in the face of protest demonstrations against Wisconsin’s new union-busting governor, Scott Walker — demonstrations that continued through the weekend, with huge crowds on Saturday — Representative Paul Ryan made an unintentionally apt comparison: “It’s like Cairo has moved to Madison.”

It wasn’t the smartest thing for Mr. Ryan to say, since he probably didn’t mean to compare Mr. Walker, a fellow Republican, to Hosni Mubarak. Or maybe he did — after all, quite a few prominent conservatives, including Glenn Beck, Rush Limbaugh and Rick Santorum, denounced the uprising in Egypt and insist that President Obama should have helped the Mubarak regime suppress it.

In any case, however, Mr. Ryan was more right than he knew. For what’s happening in Wisconsin isn’t about the state budget, despite Mr. Walker’s pretense that he’s just trying to be fiscally responsible. It is, instead, about power. What Mr. Walker and his backers are trying to do is to make Wisconsin — and eventually, America — less of a functioning democracy and more of a third-world-style oligarchy. And that’s why anyone who believes that we need some counterweight to the political power of big money should be on the demonstrators’ side.

Some background: Wisconsin is indeed facing a budget crunch, although its difficulties are less severe than those facing many other states. Revenue has fallen in the face of a weak economy, while stimulus funds, which helped close the gap in 2009 and 2010, have faded away.

In this situation, it makes sense to call for shared sacrifice, including monetary concessions from state workers. And union leaders have signaled that they are, in fact, willing to make such concessions.

But Mr. Walker isn’t interested in making a deal. Partly that’s because he doesn’t want to share the sacrifice: even as he proclaims that Wisconsin faces a terrible fiscal crisis, he has been pushing through tax cuts that make the deficit worse. Mainly, however, he has made it clear that rather than bargaining with workers, he wants to end workers’ ability to bargain.

The bill that has inspired the demonstrations would strip away collective bargaining rights for many of the state’s workers, in effect busting public-employee unions. Tellingly, some workers — namely, those who tend to be Republican-leaning — are exempted from the ban; it’s as if Mr. Walker were flaunting the political nature of his actions.

Why bust the unions? As I said, it has nothing to do with helping Wisconsin deal with its current fiscal crisis. Nor is it likely to help the state’s budget prospects even in the long run: contrary to what you may have heard, public-sector workers in Wisconsin and elsewhere are paid somewhat less than private-sector workers with comparable qualifications, so there’s not much room for further pay squeezes.

So it’s not about the budget; it’s about the power.

In principle, every American citizen has an equal say in our political process. In practice, of course, some of us are more equal than others. Billionaires can field armies of lobbyists; they can finance think tanks that put the desired spin on policy issues; they can funnel cash to politicians with sympathetic views (as the Koch brothers did in the case of Mr. Walker). On paper, we’re a one-person-one-vote nation; in reality, we’re more than a bit of an oligarchy, in which a handful of wealthy people dominate.

Given this reality, it’s important to have institutions that can act as counterweights to the power of big money. And unions are among the most important of these institutions.

You don’t have to love unions, you don’t have to believe that their policy positions are always right, to recognize that they’re among the few influential players in our political system representing the interests of middle- and working-class Americans, as opposed to the wealthy. Indeed, if America has become more oligarchic and less democratic over the last 30 years — which it has — that’s to an important extent due to the decline of private-sector unions.

And now Mr. Walker and his backers are trying to get rid of public-sector unions, too.

There’s a bitter irony here. The fiscal crisis in Wisconsin, as in other states, was largely caused by the increasing power of America’s oligarchy. After all, it was superwealthy players, not the general public, who pushed for financial deregulation and thereby set the stage for the economic crisis of 2008-9, a crisis whose aftermath is the main reason for the current budget crunch. And now the political right is trying to exploit that very crisis, using it to remove one of the few remaining checks on oligarchic influence.

So will the attack on unions succeed? I don’t know. But anyone who cares about retaining government of the people by the people should hope that it doesn’t.


http://www.nytimes.com/2011/02/22/us/22koch.html?src=me&ref=general


Billionaire Brothers’ Money Plays Role in Wisconsin Dispute
By ERIC LIPTON

February 21, 2011
New York Times

WASHINGTON — Among the thousands of demonstrators who jammed the Wisconsin State Capitol grounds this weekend was a well-financed advocate from Washington who was there to voice praise for cutting state spending by slashing union benefits and bargaining rights.

The visitor, Tim Phillips, the president of Americans for Prosperity, told a large group of counterprotesters who had gathered Saturday at one edge of what otherwise was a mostly union crowd that the cuts were not only necessary, but they also represented the start of a much-needed nationwide move to slash public-sector union benefits.

“We are going to bring fiscal sanity back to this great nation,” he said.

What Mr. Phillips did not mention was that his Virginia-based nonprofit group, whose budget surged to $40 million in 2010 from $7 million three years ago, was created and financed in part by the secretive billionaire brothers Charles G. and David H. Koch.

State records also show that Koch Industries, their energy and consumer products conglomerate based in Wichita, Kan., was one of the biggest contributors to the election campaign of Gov. Scott Walker of Wisconsin, a Republican who has championed the proposed cuts.

Even before the new governor was sworn in last month, executives from the Koch-backed group had worked behind the scenes to try to encourage a union showdown, Mr. Phillips said in an interview on Monday.

State governments have gone into the red, he said, in part because of the excessively generous pay and benefits that unions have been able to negotiate for teachers, police, firefighters and other state and local employees.

“We thought it was important to do,” Mr. Phillips said, adding that his group is already working with activists and state officials in Indiana, Ohio and Pennsylvania to urge them to take similar steps to curtail union benefits or give public employees the power to opt out of unions entirely.

To union leaders and liberal activists in Washington, this intervention in Wisconsin is proof of the expanding role played by nonprofit groups with murky ties to wealthy corporate executives as they push a decidedly conservative agenda.

“The Koch brothers are the poster children of the effort by multinational corporate America to try to redefine the rights and values of American citizens,” said Representative Gwen Moore, Democrat of Wisconsin, who joined with others in the union protests.

A spokesman for Koch Industries, as well as Mr. Phillips, scoffed at that accusation. The companies owned by Koch (pronounced Coke) — which include the Georgia-Pacific Corporation and the Koch Pipeline Company — have no direct stake in the union debate, they said. The company has about 3,000 employees in Wisconsin, including workers at a toilet paper factory and gasoline supply terminals. The pending legislation would not directly affect its bottom line.

“A balanced budget will benefit Koch Industries and its thousands of employees in Wisconsin no more and no less than the rest of the state’s private-sector workers and employers,” said Jeff Schoepke, a Koch Industries lobbyist in Wisconsin. “This is a dispute between public-sector unions and democratically elected officials over how best to serve the public interest.”

Certainly, the Koch brothers have long used their wallets to promote fiscal conservatism and combat regulation, another Koch Industries spokesman said Monday.

But the push to curtail union benefits in Wisconsin has been backed by many conservative groups that have no Koch connection, Mr. Phillips noted.

Americans for Prosperity came to Wisconsin more than five years ago and has thousands of members, he said. The state chapter organized buses on Saturday for hundreds of Wisconsin residents to go to the Capitol to support the governor’s proposals.

“This is a Wisconsin movement,” said Fred Luber, chief executive of the Supersteel Products Corporation in Milwaukee, who serves on Americans for Prosperity’s Wisconsin state advisory board. “Obviously, Washington is interested in this. But it is up to us to do.”

Political activism is high on the list of priorities for Charles Koch, who in a letter last September to other business leaders and conservatives explained that he saw no other choice.

“If not us, who? If not now, when?” said the letter, which invited other conservatives to a retreat in January in Rancho Mirage, Calif. “It is up to us to combat what is now the greatest assault on American freedom and prosperity in our lifetimes.”

Campaign finance records in Washington show that donations by Koch Industries and its employees climbed to a total of $2 million in the last election cycle, twice as much as a decade ago, with 92 percent of that money going to Republicans. Donations in state government races — like in Wisconsin — have also surged in recent years, records show.

But the most aggressive expansion of the Koch brothers’ effort to influence public policy has come through the Americans for Prosperity, which runs both a charitable foundation and a grass-roots-activists group. Mr. Phillips serves as president of both branches, and David Koch is chairman of the Americans for Prosperity Foundation.

The grass-roots-activists wing of the organization today has chapters in 32 states, including Wisconsin, and an e-mail list of 1.6 million supporters, said Mary Ellen Burke, a spokeswoman. She would not say how much of last year’s $40 million budget came from the Koch family, but nationwide donations have come in from 70,000 members, she said, offering it as proof that it has wide support.

The organization has taken up a range of topics, including combating the health care law, environmental regulations and spending by state and federal governments. The effort to impose limits on public labor unions has been a particular focus in Ohio, Indiana, Pennsylvania and Wisconsin, all states with Republican governors, Mr. Phillips said, adding that he expects new proposals to emerge soon in some of those states to limit union power.

To Bob Edgar, a former House Democrat who is now president of Common Cause, a liberal group that has been critical of what it sees as the rising influence of corporate interests in American politics, the Koch brothers are using their money to create a façade of grass-roots support for their favorite causes.

“This is a dangerous moment in America history,” Mr. Edgar said. “It is not that these folks don’t have a right to participate in politics. But they are moving democracy into the control of more wealthy corporate hands.”

During a demonstration outside the Wisconsin Capitol Monday, one protester made a similar point, holding a sign saying: “Gov. Walker: Kick the Koch Habit.”

But Mr. Phillips and members of his group and other conservative activists, not surprisingly, see it very differently.

Just as unions organize to fight for their priorities, conservatives are entitled to a voice of their own.

“This is a watershed moment in Wisconsin,” Mr. Phillips said. “For the last two decades, government unions have used their power to drive pensions and benefits and salaries well beyond anything that can be sustained. We are just trying to change that.”






Steven Greenhouse contributed reporting from Madison, Wis.




The Central Importance of Public Employees To the National Economy and the Role of Unions


Protesters in Wisconsin on February 19, 2011. (Photo: mrbula)


http://www.truth-out.org/the-betrayal-public-workers67939

All,

Still more truth and consequences...

Kofi


The Betrayal of Public Workers
by Robert Pollin and Jeffrey Thompson
16 February 2011

Truthout


The Great Recession and its aftermath are entering a new phase in the United States, which could bring even more severe assaults on the living standards and basic rights of ordinary people than we have experienced thus far. This is because a wide swath of the country’s policy- and opinion-making elite have singled out public sector workers—including schoolteachers, healthcare workers, police officers and firefighters—as well as their unions and even their pensions as deadweight burdens sapping the economy’s vitality.

The Great Recession did blow a massive hole in state and municipal government finances, with tax receipts—including income, sales and property taxes—dropping sharply along with household incomes, spending and real estate values. Meanwhile, demand for public services, such as Medicaid and heating oil assistance, has risen as people’s circumstances have worsened. But let’s remember that the recession was caused by Wall Street hyper-speculation, not the pay scales of elementary school teachers or public hospital nurses.

Nonetheless, a rising chorus of commentators charge that public sector workers are overpaid relative to employees in comparable positions in the private sector. The fact that this claim is demonstrably false appears not to matter. Instead, the attacks are escalating. The most recent proposal gaining traction is to write new laws that would allow states to declare bankruptcy. This would let them rip up contracts with current public sector employees and walk away from their pension fund obligations. Only by declaring bankruptcy, Republican luminaries Jeb Bush and Newt Gingrich argued in the Los Angeles Times, will states be able to “reform their bloated, broken and underfunded pension systems for current and future workers.”

But this charge is emanating not only from the Republican right; in a front-page story on January 20, the New York Times reported on a more general trend spreading across the country in which “policymakers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.”

Considered together, state and local governments are the single largest employer in the US economy. They are also the country’s most important providers of education, healthcare, public safety and other vital forms of social support. Meanwhile, the official unemployment rate is stuck at 9 percent—a more accurate figure is 16.1 percent—a full eighteen months after the recession was declared over. How have we reached the point where the dominant mantra is to dismantle rather than shore up state and local governments in their moment of crisis?

Why States Need Support During Recessions

The Wall Street–induced recession clobbered state and local government budgets. By 2009, state tax revenues had fallen by fully 13 percent relative to where they were in 2007, and they remained at that low level through most of last year. By comparison, revenues never fell by more than 6 percent in the 2001 recession. Even during the 1981–82 recession, the last time unemployment reached 9 percent, the decline in state tax revenues never exceeded 2 percent. These revenue losses, starting in 2008, when taken together with the increased demand for state services, produced an average annual budget gap in 2009–11 of $140 billion, or 21 percent of all state spending commitments.

Unlike the federal government, almost all state and local governments are legally prohibited from borrowing money to finance shortfalls in their day-to-day operating budgets. The state and local governments do borrow to finance their long-term investments in school buildings, roads, bridges, sewers, mass transit and other infrastructure projects. They have established a long record of reliability in repaying these debt obligations, even during the recession. Nevertheless, these governments invariably experience a squeeze in their operating budgets during recessions, no matter how well they have managed their finances during more favorable economic times.

If, in a recession, states and municipalities are forced to reduce their spending in line with their loss in tax revenues, this produces layoffs for government employees and loss of sales for government vendors. These cutbacks, in turn, will worsen conditions in the private market, discouraging private businesses from making new investments and hiring new employees. The net impact is to create a vicious cycle that deepens the recession.

As such, strictly as a means of countering the recession—on behalf of business interests as well as everyone else in the community—the logic of having the federal government providing stimulus funds to support state and local government spending levels is impeccable. The February 2009 Obama stimulus—the American Recovery and Reinvestment Act (ARRA)—along with supplemental funds for Medicaid, has provided significant support, covering about one-third of the total budget gap generated by the recession. But that leaves two-thirds to be filled by other means. ARRA funds have now run out, and the Republican-controlled House of Representatives will almost certainly block further funding.

In 2010 roughly another 15 percent of the budget gap was covered by twenty-nine states that raised taxes and fees-for-services. In general, raising taxes during a recession is not good policy. But if it must be done to help fill deepening budgetary holes, the sensible way to proceed is to focus these increases on wealthier households. Their ability to absorb such increases is obviously strongest, which means that, unlike other households, they are not likely to cut back on spending in response to the tax hikes. In fact, ten states—New York, Illinois, Connecticut, North Carolina, Wisconsin, Oregon, Hawaii, Vermont, Rhode Island and Delaware—have raised taxes progressively in some fashion.

Of course, the wealthy do not want to pay higher taxes. But during the economic expansion and Wall Street bubble years of 2002–07, the average incomes of the richest 1 percent of households rose by about 10 percent per year, more than three times that for all households. The richest 1 percent received fully 65 percent of all household income growth between 2002–07.

One charge against raising state taxes in a progressive way is that it will encourage the wealthy to pick up and leave the state. But research on this question shows that this has not happened. We can see why by considering, as a hypothetical example, the consequences of a 2 percent income tax increase on the wealthiest 5 percent of households in Massachusetts. This would mean that these households would now have $359,000 at their disposal after taxes rather than $370,000—hardly enough to affect spending patterns significantly for these households, much less induce them to relocate out of the state. At the same time, a tax increase such as this by itself will generate about $1.6 billion for the state to spend on education, healthcare and public safety.

The forces against independent journalism are growing. Help Truthout keep up the fight against ignorance and regression! Support us here.

But even with the ARRA stimulus funds and tax increases, states and municipalities have had to make sharp cuts in spending. More severe cuts will be coming this year, with the ARRA funds now gone. These include cuts that will reduce low-income children’s or families’ eligibility for health insurance; further cuts in medical, homecare and other services for low-income households, as well as in K–12 education and higher education; and layoffs and furloughs for employees. The proposed 2012 budgets include still deeper cuts in core areas of healthcare and education. In Arizona, the governor’s budget would cut healthcare for 280,000 poor people and reduce state support for public universities by nearly 20 percent. In California, Governor Brown is proposing to bring spending on the University of California down to 1999 levels, when the system had 31 percent fewer students than it does today.

State and Local Government Workers Are Not Overpaid

Even if state and local government employees are not responsible for the budgetary problems that emerged out of the recession, are they nevertheless receiving bloated wage and benefits packages that are holding back the recovery? Since the recession began, there has been a steady stream of media stories making such claims. One widely cited 2009 Forbes cover article reported, “State and local government workers get paid an average of $25.30 an hour, which is 33 percent higher than the private sector’s $19…. Throw in pensions and other benefits and the gap widens to 42 percent.”

What figures such as these fail to reflect is that state and local government workers are older and substantially better educated than private-sector workers. Forbes is therefore comparing apples and oranges. As John Schmitt of the Center for Economic Policy Research recently showed, when state and local government employees are matched against private sector workers of the same age and educational levels, the public workers earn, on average, about 4 percent less than their private counterparts. Moreover, the results of Schmitt’s apples-to-apples comparison are fully consistent with numerous studies examining this same question over the past twenty years. One has to suspect that the pundits who have overlooked these basic findings have chosen not to look.

State Pension Funds Are Not Collapsing

Not surprisingly, state and local government pension funds absorbed heavy losses in the 2008–09 Wall Street crisis, because roughly 60 percent of these pension fund assets were invested in corporate stocks. Between mid-2007 and mid-2009, the total value of these pension funds fell by nearly $900 billion.

This collapse in the pension funds’ asset values has increased their unfunded liabilities—that is, the total amount of benefit payments owed over the next thirty years relative to the ability of the pension funds’ portfolio to cover them. By how much? In reality, estimating the total level of unfunded liabilities entails considerable guesswork. One simply cannot know with certainty how many people will be receiving benefits over the next thirty years, nor—more to the point—how much money the pension funds’ investments will be earning over this long time span. The severe instability of financial markets in the recent past further clouds the picture.

Thus, these estimates vary by huge amounts, depending on the presumed rate of return for the funds. The irony is that right-wing doomsayers in this debate, such as Grover Norquist, operate with an assumption that the fund managers will be able to earn returns only equal to the interest rates on riskless US Treasury securities. Under this assumption, the level of unfunded liabilities balloons to the widely reported figure of $3 trillion. To reach this conclusion, the doomsayers are effectively arguing that the collective performance of all the Wall Street fund managers—those paragons of free-market wizardry—will be so anemic over the next thirty years that the pension funds may as well just fire them and permanently park all their money in risk-free government bonds. It follows that the profits of private corporations over the next thirty years will also be either anemic or extremely unstable.

But it isn’t necessary to delve seriously into this debate in order to assess the long-term viability of the public pension funds. A more basic consideration is that before the recession, states and municipalities consistently maintained outstanding records of managing their funds. In the 1990s the funds steadily accumulated reserves, such that by 2000, on average, they were carrying no unfunded liabilities at all. Even after the losses to the funds following the previous Wall Street crash of 2001, the unfunded share of total pension obligations was no more than around 10 percent. By comparison, the Government Accountability Office holds that to be fiscally sound, the unfunded share can be as high as 20 percent of the pension funds’ total long-term obligations.

A few states are facing more serious problems, including New Jersey, Illinois and California. New Jersey is in the worst shape. But this is not because the state has been handing out profligate pensions to its retired employees. The average state pension in New Jersey pays out $39,500 per year. The problem is that over the past decade, the state has regularly paid into the system less than the amount agreed upon by the legislature and governor and stipulated in the annual budgets. For 2010 the state skipped its scheduled $3.1 billion payment altogether. However, even taking New Jersey’s worst-case scenario, the state could still eliminate its unfunded pension fund liabilities—that is, begin running a 100 percent fully funded pension fund—if it increased the current allocation by about 4 percent of the total budget, leaving 96 percent of the state budget allocation unchanged.

In dollar terms, this worst-case scenario for New Jersey would require the state to come up with roughly $4 billion per year to cover its pension commitments in an overall budget in the range of $92 billion. Extracting this amount of money from other programs in the budget would certainly cause pain, especially when New Jersey, like all other states, faces tight finances. But compare this worst-case scenario with the bankruptcy agenda being discussed throughout the country.

To begin with, seriously discussing a bankruptcy agenda will undermine the confidence of private investors in all state and municipal bonds—confidence that has been earned by state and municipal governments. When the markets begin to fear that states and municipalities are contemplating bankruptcy, this will drive up the interest rates that governments will have to pay to finance school buildings, infrastructure improvements and investments in the green economy.

Then, of course, there is the impact on the pensioners and their families. For the states and municipalities to walk away from their pension fund commitments would leave millions of public sector retirees facing major cuts in their living standards and their sense of security. Something few Americans understand is that roughly one-third of the 19 million state and local employees—i.e., those in fifteen states, including California, Texas and Massachusetts—are not eligible for Social Security and will depend exclusively on their pensions and personal savings in retirement. In addition, public sector pensions are not safeguarded by the federal Pension Benefit Guaranty Corporation. Unlike Wall Street banks, state pensioners will receive no bailout checks if the states choose to abrogate their pension fund agreements.

Getting Serious About Reforming State Finances

Of course, there are significant ways the public pension systems, as well as state and local finances more generally, can be improved. The simplest solution, frequently cited, involves “pension spiking”—that is, practices such as allowing workers to add hundreds of hours of overtime at the end of their careers to balloon their final year’s pay and their pensions. This has produced serious additional costs to pension obligations in some states and municipalities, but it is still by no means a major factor in explaining states’ current fiscal problems.

But states and municipalities also have to follow through on the steps they have taken to raise taxes on the wealthy households that are most able to pay. They should also broaden their sources of tax revenue by taxing services such as payments to lawyers, as well as by taxing items purchased over the Internet. And they have to stop giving out large tax breaks to corporations as inducements to locate in their state or municipality instead of neighboring locations. This kind of race to the bottom generates no net benefit to states and municipalities.

Finally, state and local governments are in the same boat as the federal government and private businesses in facing persistently rising healthcare costs. As was frequently noted during the healthcare debates over the past two years, the United States spends about twice as much per person on healthcare as other highly developed countries do, even though these other countries have universal coverage, longer life expectancies and generally healthier populations. These costs weigh heavily on the budgets of state and local governments, which finance a large share of Medicaid and health benefits for state employees. The problem is that we spend far more than other countries on medications, expensive procedures and especially insurance and administration. We also devote less attention to prevention. It remains to be seen how much the Obama healthcare reform law—the 2010 Patient Protection and Affordable Care Act—will remedy this situation. It is certainly the case that more must be done, especially in establishing effective controls on the drug and insurance industries.

These are some of the long-run measures that must be taken to bolster the financing of education, healthcare, public safety and other vital social services, as well as to support investments in infrastructure and the green economy. If states declare bankruptcy they will break their obligations to employees, vendors, pensioners and even bondholders, which will undermine the basic foundations of our economy. As we emerge, if only tentatively, from the wreckage of the Great Recession, this is precisely the moment we need to strengthen, not weaken, the standards of fairness governing our society.



Robert Pollin is a professor of economics and co-director of the Political Economy Research Institute (PERI) at the University of Massachusetts. One of his most recent books (co-written) is A Measure of Fairness: The Economics of Living Wages and Minimum Wages in the United States.

Jeffrey Thompson is an assistant research professor at the Political Economy Research Institute (PERI) at the University of Massachusetts.