Stephen, J. Cabot blog

August 7, 2009

The Ongoing Saga of Union Corruption

 

The New York District Council of Carpenters and Joiners of America has had a sordid history. In 1990, federal officials attempted to remove mob influence within the union. In 1994, their efforts resulted in a consent decree that was followed by a court appointed corruption monitor. The New York Times has now reported that “federal authorities…announced new corruption charges on Wednesday against the union’s leader and nine other union officials and contractors. The charges include racketeering, bribery, fraud and perjury.”

A twenty-nine count indictment was issued, following a lengthy investigation by the FBI, the Department of Labor, and Manhattan prosecutors. It alleges that union officials accepted $1 million in bribes to permit contractors to pay below union scale benefits and hire non-union and illegal alien workers, and to forego payments to union benefit funds.

We were further reminded of union corruption this week when we learned of the death of Budd Schulberg, who wrote one of the greatest screenplays ever filmed about union corruption, On The Waterfront, starring Marlon Brando and Karl Malden, who also recently died.

With a pro-union administration in Washington and with the likely passage of the Employee Free Choice Act on the horizon, unions will again be in a position where they can take advantage of workers and corporations. It will be a lose-lose situation for everyone, except – of course – for the unions and their political enablers.

 

July 17, 2009

One Down, Four to Go: EFCA

This week, the U. S. Senate decided to eliminate card checks from its proposed Employee Free Choice Act (EFCA). Unions will not be able to represent employees simply by getting them to sign cards expressing a desire to be represented by a union. This victory was won by the concerted efforts of Corporate America and all those who believe in the democratic principle of secret ballot elections.

 

The bad news is that a revised EFCA bill will call for a rapid time frame for new elections. Union elections would have to take place within a five to ten day period after 30% of workers had signed cards indicating that they want to be represented by a union. Current campaigns often run more than a month and often up to two months.

 

In addition, the revised bill would require that union organizers be permitted on company property.

 

As if that were not bad enough, the revised bill would also prevent management from requiring that workers attend anti-union, pro-management educational sessions.

 

Finally, the bill would contain a demand that employers, who fail to reach agreement on a contract with a new union, submit to binding arbitration. This, in effect, means that government agents will impose an agreement on managment, one which may be one sided and financially unsound.

 

The new bill will be voted on in September, so it is essential that Corporate America continue its vigorous lobbying efforts. It is also essential that Corporate America learns to deal effectively and proactively with the negative provisions of the revised bill before unions come calling on its workers.