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 WSLC Reports Today logoUPDATED DAILY -- M-F by 9 a.m. Pacific

Links to commercial press stories are functional at the date of posting. In some cases, links "expire" when the source would like to begin charging you for old news. Disclaimer: WSLC Reports Today  links to all stories of interest to organized labor; some positive and some negative. The intention is to inform.  The creation of a link does not constitute an endorsement of that story's content.


Reports for July 22-26, 2002

Previous weeks' news: July 15-19 -- July 8-12 -- June 24-27

FRIDAY, July 26 -- Final Fast Track vote expected tonight in U.S. House
...see also -- Sweeney: New Fast Track allows Arthur Anderson to write global trade rules

...plus -- UFW Festival for Justice and Legalization is Aug. 11 in Yakima
— A MUST-READ story in The Nation -- A proposal to American labor -- The case for "open-source" or minority-representation unionism: "What we need today is a labor movement that workers can join easily, without going to war with their employers; a labor movement that welcomes support anywhere it finds it, and is able to crystallize what is now diffuse support into real membership and shared action; and a movement that will offer support anywhere workers are struggling to build power."
— In today's Salem (Ore.) S-J -- Oregon disqualifies Sizemore's 2002 anti-union initiative
— In yesterday's Aberdeen Daily World -- Former union leader (Dave Rux) guilty of embezzlement
— In today's Seattle P-I -- Nicastro assails Nickels in letter to union official
— In today's News-Tribune -- Nurses (WSNA) sue hospital over missed work breaks
...plus -- State can't afford to underfund higher education (editorial)
— In today's Spokesman-Review -- New Eyman plan another roadblock (editorial)
— In today's Seattle Times -- Seniors needs a real drug benefit, not privatization (McDermott op-ed)
At AFLCIO.org -- Fast Track sneak attack; bill being rushed to the floor
— In today's N.Y. Times -- House, Senate reach initiative deal on Fast Track trade powers for Bush
...plus -- The private interest -- Krugman column: How can Bush still be pushing Social Security privatization? The answer may have been summarized in an Aug. 16, 1998, article in The Houston Chronicle: "A pattern emerges: When a Bush is in power, Bush's business associates benefit."
— In today's Washington Post -- Bush may veto Homeland Security bill over worker rights issue 

THURSDAY, July 25 -- SPEEA members vote to recall president and treasurer
...plus -- Facing strike, Vashon CCC reaches agreement with caregivers (SEIU 6)
— In today's Olympian -- ILWU unanimously rejects West Coast ports contract deal
— In today's Yakima H-R -- United Farm Workers gathering signatures for amnesty measure
— In today's News-Tribune -- It's official: Police, fire fighters' I-790 wins spot on fall ballot 
— In today's Seattle P-I -- "Rising star" Boeing exec says costs must be cut more deeply
— In today's Seattle Times -- Sonic Cruiser's fate is still up in the air
...plus -- Reichert as Governor: An arresting idea -- Balter column: Nonpartisan King County Sheriff "has the potential to be a tremendous candidate," says GOP boss Chris "It's not my fault" Vance.
AFL-CIO Action Alert -- Tell WorldCom CEO to put employees first
— In today's Wall Street Journal -- Criminal charges seen for WorldCom execs
— In today's N.Y. Times -- A fairer trade bill -- Editorial: Remove provision of Fast Track that allow companies to sue in secret trade courts when government actions reduce the value of their investments, plus fix rules governing poor countries' ability to get affordable medicine. 
— In today's Washington Post -- White House says state of economy not so bad (?!)
...plus -- Bush continues to back privatized Social Security (Maybe it's time to stop scheduling those White House economic briefings during Dubya's nap time.)

WEDNESDAY, July 24 -- Who's leading the way to corporate reform? UNIONS!
— In today's Olympian -- PDC backtracks, GOP may have to forfeit $4.8 million after all -- PDC chief vows "similar course of action" to the Democratic forfeiture of union funds it required last fall.
...plus -- Eyman & Co. running with new road initiative to undermine Ref. 51
— In today's Seattle Times -- Eyman might ask voters to overrule themselves? (editorial)
...plus -- Boeing union (SPEEA) votes on ouster  of leaders today
...plus -- Airbus likely to build factory in U.S. (pursuing Boeing's export-jobs-to-get-orders strategy)
— In today's Everett Herald -- Boeing lands 14 wide-body jet deal worth $1.4 billion
— In today's Seattle P-I -- Boeing presses on with Sonic Cruiser
...plus -- Voters can choose selfishness -- or competitiveness (Connelly column re: Ref. 51)
...plus -- GOP's John Carlson says he won't run for office in 2004
— In today's Tri-City Herald -- Locomotive engineers protest use of remote-control systems
— In today's South County Journal -- Teachers union (WEA) buys new HQ building in Federal Way
Today at AFLCIO.org -- Sweeney to Senate: Use Medicare to provide drug benefit
— In today's Washington Post -- Bitter pill: Parties' rival prescription drug plans fail in U.S. Senate
...plus -- A time to face fiscal reality -- Broder column: Washington's policing of corporate behavior is less important than its willingness to put its own fiscal house in order and get control of the budget.
— In today's L.A. Times -- Pension provision in Congress aims at cash-balance plans
— In today's N.Y. Times -- Who really cooks the books? -- MUST-READ Warren Buffett op-ed takes fellow CEOs to task: Most CEOs continue to spend their shareholders' money, directly or through trade associations, to lobby against real reform... For their shareholders' interest, and for the country's, CEO's should tell their accounting departments today to quit recording illusory pension-fund income and start recording all compensation costs. They don't need studies or new rules to do that. They just need to act.
...plus from the We're Not Making This Up Dept.-- Embattled SEC chief Pitt seeks promotion, raise

TUESDAY, July 23 -- Immigrant worker rights rally Saturday at SeaTac Airport
...plus at WashTech.org -- WashTech member pounds pavement in bid for State House
...and late yesterday --
GOP owes us $4.8 million, but PDC wants to forgive and forget
EXCLUSIVE in today's News-Tribune -- Eyman to announce new tax initiative to undo Ref. 51
— In today's Seattle Times -- Millions at stake as national GOP fails to report contributions
— In today's Seattle P-I -- State GOP in hot water over cash for election
...plus -- Mayor's veto of Hedreen building credits stands
— In today's Everett Herald -- Boeing jobs report angers unions; return of workers a contract issue
...plus -- Seniors tell Cantwell to get going on prescription drug bill -- In a related N.Y. Times editorial today, The battle over drug coverage: Senators who won't agree to a prescription drug program will have to explain that it was impossible because they blew all the money on tax cuts for the rich.
— In today's Spokesman-Review -- DSHS workers rally against cuts at mental hospitals
...plus -- Support pumped up for gas-tax referendum
— In today's South County Journal -- SPEEA set to count ballots in recall vote
— In today's Yakima H-R -- Work still needed to ensure benefits of ergonomics rule (editorial)
— In today's Salem (Ore.) S-J -- Sizemore's latest anti-union initiative certified... by 125 signatures
— From Reuters -- Bush plans big push for Fast Track
— In today's L.A. Times -- Dockworkers consider offer; PMA optimistic, but ILWU skeptical
...plus -- Ideologues all in a row -- Editorial: Last year President Bush eliminated the American Bar Association from the process of vetting potential judicial nominees, a role it performed ably and in a nonpartisan way for the nine presidents before him. Now he relies on the ideological tests of the very conservative Federalist Society. That's bad news for workers, consumers and environmentalists.
— In today's N.Y. Times -- Gephardt is preparing measure to legalize illegal immigrants
— In the new Business Week -- Retire at 65? Better change your plans

BREAKING NEWS -- GOP owes us $4.8 million, but PDC wants to forgive and forget

MONDAY, July 22
-- Losing my stake in the economy
(NYT op-ed by Everett union member)
...plus --
Harborview, health professionals reach contract agreement
— In today's Olympian -- Ergonomic rules needed -- Editorial: It's time for business owners to work with (L&I) to implement the rules in the least burdensome way as possible. Reducing the number of injured worker claims in Washington state should be a shared goal.
...and Saturday -- GOP not penalized for late filings -- Under law (if enforced), state party and its 2000-2001 candidates should have to forfeit some $4.8 million to the state General Fund.
— In today's Seattle P-I -- Dock talks break off, dampening a good start
...plus -- Gasoline tax increase looks like a tough sell
... and Saturday -- Harborview reaches contract agreement with workers (SEIU 1199NW)
— In today's Seattle Times -- 30,000 Boeing jobs gone forever?
...plus -- City Council vote set today on veto override in Hedreen deal 
...plus -- A realistic plan for county parks (editorial supporting Sims plan)
— In Sunday's Spokesman-Review -- Ergonomics rule will send jobs elsewhere -- GOP's Hewitt and Stevens say recession is no time for worker safety rule. Of course, they said the same during the 1990s boom. They cite GOP Congress' rejection of ergo rule as evidence the "science isn't there yet." Maybe they should refer to -- I don't know -- the NATIONAL ACADEMY OF SCIENCES.
— In today's L.A. Times -- Boeing faces weak orders for Sonic Cruiser
— In today's N.Y. Times -- WorldCom is biggest bankruptcy in U.S. history
— In the latest Business Week -- UPS contract doesn't deliver for part-timers
— In Saturday's Washington Post -- A liability on the GOP balance sheet? -- As (Vice President Dick) Cheney travels the country to raise money for Republican candidates, local news coverage has begun to focus on the SEC investigation (and) of Cheney's lucrative stewardship of Halliburton. The result is a new vulnerability for President Bush as he struggles to persuade markets and investors that his administration is committed to prosecuting corporate fraud.

Previous weeks' news: July 15-19 -- July 8-12 -- June 24-27

FRIDAY, JULY 26
Final Fast Track vote expected tonight in House

OK, lemme see if I got this straight...

The Bush Administration is saying that because of the market plunge and economic woes that Corporate America has delivered upon all of us with their scandalous, fraudulent accounting practices, that Congress should hurry up and pass Fast Track to give corporations (and the market) some "good news"? And the press is buying this?

Once again, today's commercial media accounts of the Fast Track trade negotiating authority "compromise" that is being rammed through Congress ignore the real reason why it's so important for Bush & Co. to pass this job-killing measure before Congress leaves for August recess: BECAUSE AMERICANS OPPOSE FAST TRACK. (Hel-LOOOO, McFly!)

With every day closer to the election we get, the likelihood of passage becomes more remote because our representatives in D.C. fear voter backlash.

So here's the latest on today's anticipated Fast Track vote in the House: A conference committee deal cut in haste by two members who excluded the rest of the committee appears to be moving toward a vote TONIGHT (tomorrow the House leaves town and doesn't come back until after Labor Day). It's a scenario very similar to the 1997 Fast Track vote where they called for the vote at 10 p.m. on a Friday and kept twisting arms, making deals and counting votes until at 3 a.m., hoping they could pass it and immediately skip town. That's the bad news.

The good news is that in 1997 they failed. They couldn't get the votes, largely because people like YOU AND ME kept bombarding their Representatives' office with e-mails, phone calls and faxes saying STOP FAST TRACK. We have to do the same thing today and tonight.

ACTION ALERT:  
Even if you've done so already, and even if you think you are already sure of his or her position...

CALL YOUR REPRESENTATIVE... NOW!
(especially if it's Inslee, Larsen or Smith)
Talking points below.

1-877-611-0063 (AFL-CIO sponsored toll-free number)
1-202-224-3121 (Capitol Hill switchboard)

REPRESENTATIVE
Jay Inslee (D-1st)

Rick Larsen (D-2nd)

Brian Baird (D-3rd)

"Doc" Hastings (R-4th)

George Nethercutt (R-5th)

Norm Dicks (D-6th)

Jim McDermott (D-7th)

Jennifer Dunn (R-8th)

Adam Smith (D-9th)
D.C. PHONE
202-225-6311

202-225-2605

202-225-3536

202-225-5816

202-225-2006

202-225-5916

202-225-3106

202-225-7761

202-225-8901
LOCAL PHONE
425-640-0233
360-598-2342

425-252-3188
360-733-4500

360-352-9768
360-695-6292
509-452-3243
509-543-9396
509-353-2374
509-684-3481
253-593-6536
360-479-4011
206-553-7170

206-275-3438

253-593-6600
E-MAIL
www.house.gov/inslee

Rick.Larsen@mail.house.gov

www.house.gov/baird 

www.house.gov/hastings

www.house.gov/nethercutt 

www.house.gov/dicks

www.house.gov/mcdermott 

www.house.gov/dunn 

www.house.gov/adamsmith

Here are some talking points. STOP FAST TRACK because:

NOW IS THE WRONG TIME TO REWARD CORPORATE AMERICA. This sends a message to Americans that its Business As Usual in Washington D.C., even as we watch our retirement savings evaporate because of corporate-greed-driven accounting scandals. As you read this, hundreds of corporate lobbyists have shifted their focus from opposing Congress' proposed accounting reforms to demanding passage of Fast Track. This could be the last time these corporate lobbyists feel compelled to even discuss international trade issues with Congress, because if they get Fast Track passed, Congress will be cut out of the trade negotiating loop and the lobbyists will need only tell the Bush Administration what to do -- behind closed doors.

IT'S TOO IMPORTANT TO BE RUSHED AND RAMMED THROUGH. Tell your Representative that this last-minute steamroll process is not acceptable. A bill with this much long-term significance should be carefully studied and discussed before the vote is taken. This bill is hundreds of pages and is being rammed down the throats of Representatives -- and even members of the conference committee cut out of negotiations(!). They had to get the Rules Committee to waive the normal one-day waiting period to allow members to read the package so they can steamroll Fast Track through. THAT IS UNACCEPTABLE! How can you know what's in there if you haven't had time to read it?! Fast Track proponents are doing this because they know the more public scrutiny their package receives, the more NO votes will result.

IT'S STILL BAD LEGISLATION. It will lead to further removal of regulations on corporate practices and behavior that the public wants and the economy needs. It allows NAFTA's Chapter 11, a fundamental attack on our sovereignty and democracy, to be expanded by including it in future trade agreements (see yesterday's N.Y. Times editorial on this subject). It includes the Gramm provision stating that trading-partner countries do not need to enforce their own labor laws, and enforceable labor rights provisions cannot be included in future trade agreements. The aid package for workers laid off because of international trade has been weakened to a level far below below that which Rep. Adam Smith and other "moderate" Democrats have demanded (which is what the Senate prescribed) to the point that it would not help high-tech or service workers in Washington state. Word is that all contract workers (high-tech, etc.), truck drivers, secondary workers, fisherman and more have been completely cut out of the package.

Please forward this message to your co-workers, friends and family. Then, tune in tonight to C-SPAN and get out the popcorn. It could be a late night.

FRIDAY, JULY 26
UFW Festival for Justice and Legalization is Aug. 11 in Yakima

The United Farm Workers of Washington invites all members of the labor, religious and community-based organization -- and the general public -- to come to Yakima on Sunday, August 11 for a Farmworker Festival for Justice and Legalization from 2 to 6 p.m. at Miller Park (corner of N. 3rd Street and East "D" Street). The event will feature important speakers, live music, workshops and other educational opportunities.

Get on the Justice Bus from Seattle!  It departs at 10 a.m. from the Park 'n' Ride at I-5 and 65th. There will be various return times. A $25 is requested to cover the cost of the round-trip bus, lunch, educational materials and other event costs (please consider making a larger donation for folks unable to pay). Please RSVP to Mark at the Washington Association of Churches at (206) 625-9790 x17.

Among the issues to be addressed are:

  • Joining the Million Voices for Legalization postcard campaign calling on President Bush to grant a JUST legalization for hardworking immigrant workers.
  • Learning about the Fair Trade Apple Campaign (see 2001 WSLC resolution on the subject) and how YOU can get involved.
  • Showing your solidarity with farm workers struggling for respect, dignity and justice in the workplace.
  • Renewing your spirit and gaining strength for the struggle from the examples of our farmworker Brothers and Sisters.

Don't miss this event, your presence counts! For more information, contact the UFW of Washington at (509) 839-4903 in Sunnyside, or Rebecca Saldaña in Seattle at (206) 789-1947.

THURSDAY, JULY 25
SPEEA members vote to recall president and treasurer

The following press release has been distributed by the Society of Professional Engineering Employees in Aerospace, IFPTE Local 2001:

Members of the labor union representing engineers, technical workers and other professionals at The Boeing Company have recalled their recently elected president and treasurer.

Thomas E. Day, an engineer at Boeing’s Auburn plant, who was elected in March to president of the Society of Professional Engineering Employees in Aerospace (SPEEA) IFPTE Local 2001, is no longer in office. Recalled as treasurer of the union in the special referendum election was Michael Dunn, an engineer at Boeing’s Kent plant.

The final tally showed the referendum to recall Day passed by a vote of 4,118 to 3,156, or 56.6% for recall.

The recall of Michael Dunn passed by a vote of 4,023 to 3,250, or 55.3% for recall.

Since taking office on March 27, and as cited in the referendums, the pair angered members by circumventing the desires of the union’s Executive Board and the SPEEA Council when they took a group to meet with Boeing Commercial Airplane President Alan Mulally. Some on the council said the meeting harmed negotiations for upcoming contracts. Day was also criticized for linking Internet web sites he maintained to other sites that some felt were inappropriate. Day and Dunn also drew disfavor from some members by supporting a web site that often criticized SPEEA, other union leaders and SPEEA staff. As outlined in SPEEA’s governing documents, the president and treasurer, along with other members of the Executive Board, work with the union’s paid staff to administer union activities. The board is separate from the union’s contract negotiating teams.

A total of 7,281 votes were returned in the election for a return rate of about 40%. A total of 18,249 ballots were mailed to members earlier this month. The voting package included pro and con statements written by member committees.

The recall of both officers take effect immediately. SPEEA Secretary Jennifer MacKay, an engineer at Boeing’s Spokane facility, assumed the office of SPEEA President with the certification of the election results by the SPEEA Tellers’ Committee.

"This has been a difficult process, but we will be stronger for going through it," said President MacKay. "The membership recognized the concerns and used the processes that exist to take care of the situation."

SPEEA Executive Director Charles Bofferding said the election is a reminder that members stand ready to deal with anything they think may harm their chances of securing a good contract with The Boeing Company.

"This is an issue that could only be settled with a membership vote," Bofferding said. "The members voted. It’s settled. Now it’s time for all of us to pull together and focus on the three upcoming contract talks that will affect tens of thousands of SPEEA members."

SPEEA will negotiate new contracts for three bargaining units this year. When last negotiated in 1999, two of those bargaining units struck Boeing for 40 days in the largest white-collar strike against a corporation in the history of the United States.

"Now we need to focus on negotiations and getting the best contract for members possible," Bofferding said. "We will find a way for all SPEEA leaders to work together and focus our efforts on the upcoming negotiations."

Removal of the two officers creates two vacancies on the SPEEA Executive Board. The two officer spots on the Executive Board will now be filled from the remaining five members. The newly created vacancies on the Executive Board will be filled by a nominating and election process from within the 140-member SPEEA Council.

SPEEA represents 23,500 engineers, technical and other professional workers at Boeing in Washington, Oregon, Kansas, California, Texas, Utah and Florida.

For more information, contact Bill Dugovich, SPEEA Communications Director, at 206-674-7368.

THURSDAY, JULY 25
Facing strike, Vashon CCC reaches agreement with SEIU 6

Vashon Community Care Center, facing a strike deadline and mounting calls for fairness from community members, elected officials and family members of the nursing home residents reached a contract agreement Tuesday with its 35 caregivers, members of Service Employees International Union, Local 6.

Caregivers unanimously approved a contract that provides:

  • A strong voice for caregivers, with caregivers represented on the facility's Quality of Care Committee.
  • Fully-paid health insurance for caregivers.
  • Immediate wage increases averaging more than 7.4%, and shift and weekend differentials that will help attract and retain more staff.
  • Fair treatment and strong protection of caregiver rights through an effective grievance procedure.
  • Union security through a union shop.

SEIU Local 6 invites all labor and community supporters to a celebration (instead of a picket line) on Saturday, July 27 from 10 a.m. to 4 p.m. at Ober Park, Vashon Highway, Vashon.

Caregivers said they won this contract because they were ready to strike, they were united as a bargaining team, and they enjoyed tremendous support from community members, elected officials, and other union members, who wrote letters, sent hundreds of faxes to VCCC management, called VCCC Board members, and came out to the informational picket lines.

SEIU Local 6 members at Group Health last Friday marched on the president of the VCCC Board, who is a manager at Group Health Central Campus, to demand that she stop union-busting. SEIU Local 6 members at Mt. St. Vincent Nursing Home in West Seattle circulated petitions saying they would refuse to be used as strikebreakers. The King County Labor Council and the Teamsters Joint Council sanctioned the strike, pledging to honor the picket line.

WEDNESDAY, JULY 24
Who's leading the way to corporate reform?  UNIONS!

The stock market continues its freefall this week as investors read more and more stories of corporate malfeasance and outrageous executive unaccountability (and compensation). Amid testimony from working people whose retirement savings have been decimated by these scandals, Congress is struggling under the weight of laissez faire-minded corporate lobbyists to dress the windows with some new accounting regulations. 

But guess who isn't waiting for a solution from government? Guess who is leading the way to real corporate reform and shareholder empowerment that could rescue capitalism from institutional greed? ORGANIZED LABOR.

Last year, long before the Enron or WorldCom implosions, it was the United Association of Plumbers and Pipe Fitters that forced the Walt Disney Co. to ban consulting by its auditors, PricewaterhouseCoopers. In light of the Enron-Arthur Anderson debacle, the inherent conflict of interest between the two tasks now seems obvious. But it sure wasn't to Congress when they changed the law to allow such shenanigans.

The Plumbers union submitted its shareholder resolution on behalf of itself and three other unions that held more than $90 million worth of Disney stock. The resolution won 44 percent of the vote, and the company ultimately bowed to the pressure to separate consultants from auditors.

When you think about it, it makes a lot of sense that unions -- which empower individual workers by allowing them to join together and bargain as a collective force -- would lead the way toward empowering shareholders to band together and fight for responsible corporate governance. 

In a recent story, Business Week magazine called the Plumbers' Disney resolution "another victory for a group that may be doing more than any to push for corporate-governance reform: Big Labor." Lest you think the Plumbers' action was an isolated occurrence, check out this partial list of other unions that have led the fight for fundamental reforms in corporate governance:

The Communications Workers of America forced AT&T to hold a separate vote on its corporate governance plans. CWA funds also introduced a resolution to remove pension income from CEO pay at IBM after IBM converted its pension to a cash balance plan.

The Machinists Union ran a Vote NO shareholder campaign to remove Enron director Frank Savage from Lockheed Martin’s board as part of a director accountability project. The IAM also sponsored shareholder proposals at United Air Lines to tie CEO pay to performance and for an independent board chairman that was supported by a majority of shareholders. The IAM is also working to block Stanley Works’ reincorporation to Bermuda as a tax haven that will also reduce shareholder rights. 

The Firefighters put a firefighter trustee on the Virginia Retirement System and is sponsoring a ballot initiative, Initiative 790, on the ballot in Washington State to add police and firefighter pension trustees on their public pension system.

The Laborers union ran a high profile Vote NO shareholder campaign and legal challenge in Texas courts to fight Nabors Industries’ reincorporation in Bermuda as a tax haven. Laborers funds have also been filing shareholder proposals for auditor independence at Avon Products.

The Paper, Allied, Chemical and Energy Workers Union (PACE) won the highest shareholder vote ever for supporting labor standards, submitted to Unocal shareholders.

The Maritime Unions also raised the labor rights issues at the annual shareholder meeting of Trico Marine Services and at the meeting of its customers.

Led by former Spokane UFCW leader Sean Harrigan, CalPERS, the huge California public pension system, was instrumental in shaping the pro-worker Yucaipa American Alliance Fund and committing $250 million to the fund, and CalPERS’ new emerging markets guidelines are getting governments in those areas to review their labor standards, particularly in Thailand and the Philippines.

An IBEW fund filed a winning shareholder proposal on poison pills at Walgreens. An IBEW member’s shareholder proposal at Southwest Gas successfully pressured the company for greater management accountability. IBEW funds also got high votes at Apple on compensation committee independence and at Sprint for executive stock option re-pricing.

An SEIU fund introduced a resolution to curb golden parachutes at Citigroup that received a 48 percent “For” vote.

AFSCME fund proposals received shareholder majority votes at Bausch & Lomb and at Great Lakes Chemical for annual director elections and poison pills at Ryder Systems. AFSCME fund filed the first shareholder proposal at Waste Management to oppose privatization.

AFT’s New York Teachers Retirement Fund sponsored majority votes for annual election of directors at Goodyear Tire and Rubber and Hasbro.

The Sheet Metal Workers ran a proxy contest at Comfort Systems to oppose stock option re-pricing. The Sheet Metal funds have also been filing shareholder proposals on auditor independence and auditor standards at Motorola, and CEO pay at ResMed, Zale and MIPS Technologies.

The Teamsters won a shareholder proposal to limit golden parachutes at the Bank of America, the first time a CEO pay proposal from shareholders has passed after years of effort. A Teamsters proposal at Airborne for annual director elections also won majority support.

UNITE, the united needle trades union, won proposals to prevent the liquidation of Fingerhut and limits on executive compensation at Jones Apparel. In addition, the union’s Amalgamated Bank was the first institutional investor to file a class action lawsuit against Enron’s directors and Enron’s audit firm, Arthur Anderson.

This is an impressive list of union activism that has shown the way for the future of corporate accountability and making the bosses behave.

Unions understand good governance, and have used their $3 trillion-plus in pension assets to push corporate responsibility. Ultimately, those efforts may prove to have a more direct, dramatic impact on market confidence and stability -- and U.S. economic recovery -- than all of the congressional regulations and presidential "rah-rah" speeches combined.

Make sure you take time to read today's excellent op-ed by Warren Buffett in the New York Times "Who really cooks the books?"  He takes fellow CEOs to task: "Most CEOs continue to spend their shareholders' money, directly or through trade associations, to lobby against real reform... For their shareholders' interest, and for the country's, CEO's should tell their accounting departments today to quit recording illusory pension-fund income and start recording all compensation costs. They don't need studies or new rules to do that. They just need to act." 

TUESDAY, JULY 23
Immigrant worker rights rally Saturday at SeaTac Airport

Washington State Jobs with Justice is organizing a protest at SeaTac Airport at 9:30 a.m. this Saturday, July 27 on immigrant workers' right to organize a union. (Participants should meet at the Metro bus stop at the south end of the airport near baggage claim.)

During union bargaining with the Hotel Employees and Restaurant Employees union, Sky Chef management conspired to hold a phony employee meeting, disguise immigration agents (INS) in Sky Chef uniforms, and arrest union members on company property," says the WSJwJ rally announcement. "All of the arrested union members are Latino or Asian, had worked up to 10 years for Sky Chef, and many are now separated from their young children and spouses.  Neither the INS nor Sky Chef claim that arrested workers pose any real security threat.  Sky Chef workers make airplane meals, which are subject to an independent and thorough security check."

“We all have a right to a voice at work and we will not let port employers use disguised federal agents to silence us,” said Cathy Malia Lowenberg, of the Seattle branch of the Asian Pacific American Labor Alliance-Seattle, AFL-CIO.

Saturday's rally is endorsed by the Asian Pacific American Labor Alliance-Seattle, United Food & Commercial Workers Local 1001, International Longshore & Warehouse Union Local 19, Pacific Northwest Regional Council of Carpenters, Teamsters Local 763, Out Front Labor Coalition/Pride At Work, LELO, Lutheran Public Policy of WA State, State Rep. Velma Veloria (11th), Casa Latina, Sen. Adam Kline (37th), American Friends Service Committee, State Rep. Sharon Tomiko Santos (37th), Refuse & Resist-Seattle, Hate Free Zone Campaign of WA, Not In Our Name Project-Seattle.

None of the above are endorsing any work stoppage.

Jobs with Justice demands the following of Port employers:

  • Stop attacks on workers’ right to organize under the excuse of national security and “Operation Tarmac;”
  • No lies to employees about immigration procedures;
  • No cooperation with INS beyond that required by law, including bringing INS agents on company property without a warrant signed by a federal judge; and
  • Immediate notice to employees’ unions of any INS audits or raids

Directions:  Metro 194 bus from downtown Seattle (3rd & Union bus tunnel) leaves at 9:04 a.m. and arrives at 9:35 a.m. Cost is $1.25 exact change one-way, or all-day-pass for $2.50.  Buses depart airport to downtown every half hour.  Click here for more bus schedules.

For more info call JwJ at 206-441-4969.

MONDAY, JULY 22
GOP owes us $4.8 million, but PDC wants to forgive and forget

On Saturday, The Olympian newspaper broke a front-page story about the Republican Party’s failure to properly report millions of dollars of political campaign money funneled from the national to the state party organization.

Sound familiar?  Perhaps, because the state Democratic Party faces similar charges.  But there’s a big difference. A $4.8 million difference. That’s how much money the State Republican Party should have to forfeit to the state General Fund if the Public Disclosure Commission enforces the law as written.

The C-3 form the Democrats filed late (or in some cases not at all) subjects them to a PDC penalty of a maximum of $2,500, unless the case is referred to the Attorney General’s office, which could impose a stiffer fine.

The C-5 form the Republicans filed late subjects them to forfeiture of the campaign money involved — all $4.8 million. The C-5 form clearly states: “CAUTION: Failure to report transactions within ten days will cause the funds to forfeit to Washington State.”  That’s the law: RCW 42.17.090.

And that law has been strictly enforced in the past… at least against unions.

Last fall, 54 state legislators and elected officials, including Gov. Gary Locke, were forced to turn over some $37,000 to the state after the PDC found that two unions had made contributions in that amount using funds from their national union, which like the Republican National Party, failed to fill out the C-5 form.

Although an investigation has not yet been conducted, in Saturday’s Olympian article the PDC conceded that, yes, the GOP filed their C-5 forms one or two years late and, yes, the reason they filed them at all is because a PDC auditor made a “courtesy call” reminding them to fill out their C-5.

But stunningly, a PDC spokesperson has already decided the agency is unlikely to force the Republicans to forfeit the $4.8 million!

Many questions are raised by all of this. Here are just a few:

Since when does the PDC make “courtesy calls” to remind organizations of the law?  The unions that failed to submit C-5s never got a courtesy call.

Perhaps, courtesy calls are reserved for the most egregious multi-million dollar violators of PDC laws. But why, then, didn’t the Democrats get a courtesy call with a heads-up about their C-3 problem?  Is it because the PDC wasn’t aware they had a problem until a complaint was filed against them? 

If that’s the case, then the PDC must have known the Republicans were in violation.

But in Saturday’s article, PDC spokesman Doug Ellis asks us to believe that the PDC was not aware the national GOP was $4.8 million behind on their paperwork, and that a “PDC auditor” randomly decided to call them in D.C. with a reminder of their obligation to fill out C-5 forms.

That conversation is documented in the cover letter that accompanied the party’s eventual C-5 filing in March 2002 for its 2000-2001 cash transfers to the state: “Thank you for recently bringing to our attention (via a phone call) the requirement…”

If the PDC decided it was important to periodically remind its biggest customers of their obligations, why didn’t it do so in writing?  That way it wouldn’t seem as if they were playing favorites with a discreet phone-call tip.

Perhaps we all deserve some more disclosure about who at the PDC made that call to the Republican Party, and what exactly was said.  But regardless of what we find out, courtesy calls do not replace the PDC’s mandate to enforce the terms of the law.

Why does a complaint have to be filed first before the law can be enforced?  The PDC’s Ellis says the agency usually looks for a remedy that doesn’t include punishment or fines when the guilty party steps forward before a complaint is filed.

But it was the PDC that clued the Republicans into the fact that they were in violation -- or, excuse me, that they shouldn’t forget about a law for which, coincidentally, it turns out they had $4.8 million in exposure.

“We’re about compliance,” said Ellis.  

No, Mr. Ellis, the PDC is about public disclosure and enforcing the law. As many newspapers around the state have been quick to point out in the case against the Democrats, it’s too late just to comply.  The public has already been denied the opportunity to know where candidates got their out-of-state money in the 2000 and 2001 elections.

All the two-year-late “compliance” prompted by PDC “courtesy calls” amounts to a hill of beans as far as the public is concerned. The law was broken, and the punishment for breaking it is forfeiture. Period.

If the Republicans want to make their case for being granted a special exception or for changing the law retroactive to 2000, let them.  That’s not the PDC’s job.

Why does it matter whose fault it was?  GOP Chairman Chris Vance, knocked Saturday from the high horse he’s been riding for weeks as he lambasted Democrats for their PDC problem, made a point of reminding us all that it wasn’t his fault.

Unfortunately for him and his bank account, that doesn’t matter.

The law says the money must be forfeited.  It may appear as though the recipients of the unreported money – in this case, the State Republican Party and just about every one of their candidates in 2000 and 2001 – were not at fault because they could not have known the money was “tainted.”

Well, guess what?  The PDC didn’t care that the governor and the 53 other candidates couldn’t have known their union check was unreported in 2000.  But last fall, all of them had to come up with thousands of dollars to forfeit to the state, even though they spent that money long ago on their campaign.

The law is clear.  Past enforcement action is clear.  GOP chairman Chris Vance can whine all he wants that it was the national Republicans who dropped the ball on this $4.8 million “nuance” of the law (his word), but they must come up with this money unless the state is going to make new exceptions to the law for organizations that violate it on a grand scale.

(Memo to Gov. Locke: We just found that $4.5 million you needed to grant the state home-care workers the 25-cents-an-hour raise they were denied this year.)

MONDAY, JULY 22
Losing my stake in the economy

The following guest op-ed appeared in Saturday's New York Times and was written by Robert Hemsley, an Everett resident and member of the Association of Western Pulp and Paper Workers Union:  

Losing My Stake in the Economy
By ROBERT HEMSLEY

EVERETT, Wash. -- I work operating industrial machinery at a paper mill that is owned by a global corporation. My mill was built in the 1920's, when the stock market was soaring, F. Scott Fitzgerald was writing about the rich and Babe Ruth was hitting home runs for the Yankees. I get paid by the hour and do not understand the markets. I do not belong to a country club or own a suit. I just want to work at the mill until I retire.

My mill has survived the Depression, a world war, even a couple minor earthquakes. But I worry if it can survive Ken Lay. Small investors like me — encouraged by politicians, financial advisers and CNBC — poured our retirement savings into the stock market. Now we are dismayed that the corporate captains have abandoned accountability while the crew sinks with the ship.

Perhaps I am looking for excuses for the recent poor performance of my 401(k) plan, but I wonder if the market is fair. In 2001, the average chief executive's pay was more than $11 million, according to Pearl Meyer & Partners, an executive-compensation consulting firm. Executive pay has been climbing steadily for the past two decades and has outpaced employee pay. Two decades ago, C.E.O.'s were paid about 40 times more than the average hourly employee; now they make more than 500 times the wage of the average hourly employee.

Last year the C.E.O. of my company made 592 times more than I did. I wonder if that makes me underpaid or the C.E.O. overpaid. Recently management told hourly employees at my mill to make concessions or risk losing our jobs. We made the concessions last autumn, but last spring the C.E.O. received a stock "gift" worth $1.4 million.

This isn't capitalism, it's avarice. I am not naïve. I know about the robber barons of the late 19th century and others throughout history who have abused the system. But never has the gap between executives and employees been greater. This disparity threatens the capitalist system itself. When employees make concessions while executives take bonuses, the bonds of common purpose are broken.

Contrast this with the Marine Corps, which is structured so that enlisted personnel and officers work together for a common purpose. The Marine Corps commandant runs an organization with 172,600 men and women, oversees an annual budget of some $13.2 billion and is paid $163,177 annually — just 13 times more than the pay of a new private in boot camp. The system is successful because of a tradition of shared risks and rewards.

All employees want their company to succeed, and I am proud to work where I do. I imagine my concern about my company's share price is as great as my C.E.O.'s; a portion of my 401(k) is in company stock. I recognize my job depends upon my company making a profit.

But I wonder if corporate executives appreciate the role workers play in their success. Free enterprise is a system of risks and rewards. As it now stands, employees suffer most of the risks, while executives enjoy most of the rewards.

Robert Hemsley is a member of the Association of Western Pulp and Paper Workers Union. 

MONDAY, JULY 22
Harborview, health professionals reach contract agreement

Following is a press release distributed late Friday by District 1199NW of the Service Employees International Union:

Harborview Medical Center has reached two-year contract agreements with its registered nurses, social workers, social worker assistants, nurse practitioners, and physician assistants. The employees are members of Service Employees International Union District 1199NW.

"We are pleased that Harborview and SEIU 1199NW have been able to reach a mutual agreement," said Cindy Hecker, Harborviews chief nursing officer. "We look forward to our continued partnership in providing outstanding health care for our patients and in making Harborview an excellent place for staff to work.

"These agreements will benefit our entire community because they will help Harborview attract and retain nurses and professionals. The agreements will help protect the world-class care at Harborview that our community depends on," said Diane Sosne, RN, president of SEIU 1199NW.

Highlights of the contract agreements include:

  • Pay credit for registered nurses for their years of nursing
    experience prior to working at Harborview.
  • The appointment of union members to several committees that oversee various aspects of work life at Harborview.
  • Improved continuing education benefits for social workers, nurse practitioners and physician assistants.
  • Overtime pay for social workers.

Harborview Medical Center is a 351-bed patient care, teaching and research facility located in Seattle, Washington. Owned by King County and managed by the University of Washington, Harborview is a major regional health care facility serving Wyoming, Washington, Alaska, Montana and Idaho. A comprehensive health care facility, Harborview is dedicated to the control of illness and the promotion and restoration of health. The medical center's mission is to provide exemplary patient care, teaching, and research and community service.

Service Employees International Union District 1199NW includes more than 10,000 nurses and health care employees in hospitals and clinics across Washington united for quality health care and good careers. SEIU is the nations largest health care union, with more than 750,000 members working in health care nationwide.

If you have news items regarding unions or workplace issues in Washington state that you would like to see posted here, please submit them via e-mail to David Groves or via fax to 206-285-5805.

Copyright © 2002  Washington State Labor Council, AFL-CIO