Ending GM’s Two-Tiered Labor System is UAW Members’ Top Demand — And Part of a Bigger Fight Against Worker Classification

Originally published in The Intercept on September 26, 2019.
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Since last week, nearly 50,000 GM workers have been on strike, in part against a two-tiered system enforced by the auto giant that leaves “temporary” workers doing the same jobs as permanent staff for substantially less pay and fewer benefits.

The striking workers, represented by the United Automobile Workers union, or UAW, are demanding a defined path to “permanent seniority” for GM’s temporary workers — who make up about 7 percent of GM’s U.S. workforce. GM has also entrenched inequality in its ranks by contracting out some jobs, like custodial work, that were traditionally staff roles.

“I work right across from a temporary employee who’s been there for two and a half years,” Chaz Akers, a Michigan-based autoworker who has worked at GM for 3 1/2 years told Reuters. “I install the passenger side headlight. He installs the driver side headlight. I make more money than he does. I have better health insurance than he does. It ain’t fair. It ain’t right. If you’re going to pay people to do a job, pay them all the same.”

The workers’ demands are part of a broader push against worker misclassification, a tactic used by employers to lessen their labor costs. The fight has been playing out most aggressively in California, where Democratic Gov. Gavin Newsom signed a sweeping bill last week to transform the lives of workers in his state. The law — known as AB5 — sets strict limits on who can be classified as an independent contractor, rather than an employee, and is the most serious legislative threat to the gig economy in years. The law also provides new momentum for advocates considering similar reforms in other states.

Coming to an agreement on temporary workers has become the most difficult issue in the GM-UAW negotiations, according to the Detroit Free Press. Both sides are reportedly holding strong to their positions. The Free Press also reported that resolving questions around temp workers was union members’ top request when UAW leadership surveyed them last year.

Protests of temporary workers by the UAW is “not a brand-new development” said Jake Rosenfeld, a sociologist at Washington University in St. Louis and author of “What Unions No Longer Do.” “But it does seem really foregrounded now in the union’s complaints, and that seems new. These classification disputes, from my perspective, seem to be growing and tracks on to the same battles over classification in California with Uber and Lyft.”

GM, like Uber and Lyft, is pushing back against the workers’ demands by claiming that such “flexible” workers are necessary for its business model. Right now, GM is trying to convince permanent, full-time workers to accept raises and more job security in exchange for freedoms around temps.

For example, GM has reportedly proposed a boost to the company’s profit-sharing formula, financial gains that would only go to permanent, full-time employees. GM workers typically earn about $1,000 for every billion in GM’s North American pretax profits. In 2018, eligible employees earned payments up to $10,750.

Temporary workers, who often do the same work as traditional employees, are paid less, entitled to fewer benefits, and are easier to get rid of. “That’s a trend that we’re seeing all over the economy as companies try to shed conventional, full-time employees in favor of independent contractors, subcontracted workers, or franchised employees,” said Alexander Hertel-Fernandez, a political scientist at Columbia’s School of International and Public Affairs. “The difference with the auto manufacturers is that their temporary workers are covered by the UAW and its contracts, unlike in most other sectors of the economy.”

In 2007, under pressure from the financial crisis, UAW leaders agreed to a two-tiered contract, in which new GM hires would be paid at lower rates than workers hired before. To get out of this arrangement, widely deemed unfair, the union negotiated a new contract in 2015, in which new hires would still have lower starting salaries, at $15 an hour, but could “grow into” the full UAW hourly wage of roughly $30 an hour after eight years. Union leaders — citing GM’s clear improved financial position with billions of dollars in profit — now want to shorten that process, under the basic principle of equal pay for equal work. GM and the UAW did not return requests for comment.

GM’s current arrangement with temporary workers is one of several ways that employers have managed to fissure their workplaces over the last few decades, said Nelson Lichtenstein, a labor historian at the University of California Santa Barbara. Another example is by spinning off portions of their companies, like in the 1990s, when GM spun off its parts factory, Delphi. “What that meant was all of a sudden, Delphi was competing with lots of other non-union companies and went bankrupt [in 2005] and so then, of course, in the bankruptcy proceedings, you manage to transition to lower wages,” Lichtenstein said. Another way is by contracting out custodial staff who used to be company employees.

“In the auto industry, janitors used to be employed by the auto companies and got the same wages as autoworkers,” he said. “In fact, autoworkers would often become janitors as they got older because it was easier labor and still good pay,” said Lichtenstein. “Eventually, all the companies said, ‘OK, janitorial work is not part of our core business — we’ll just outsource it.’”

In general, there has been an upward trend in companies like GM moving toward temporary workers. In 1990, according to the Bureau of Labor Statistics, 42 percent of all temp workers in the U.S. were in clerical positions, compared with 28 percent of temp workers in the manufacturing and industrial sectors. But by 2000, just a decade later, 47 percent of all U.S. temp workers would be working in the manufacturing and industrial sectors.

The UAW, for its part, has a record dating back to the early 1980s of negotiating concessions around labor costs if economic conditions sour, with the understanding that if the company’s fortunes improve, those concessions would be phased back out, Lichtenstein said.

GM, Ford, and Chrysler all say that they may need to increase their use of temporary workers in the future, pointing to the fact that they’re competing with non-union foreign manufacturers that have more temporary workers and lower labor costs. In June, the Los Angeles Times reported that workers at rival auto plants run by Toyota, Nissan, and Honda make $50 an hour in wages and benefits, while GM workers cost $63 an hour. Temporary workers make up about 20 percent of the Japanese automakers’ plants.

A former GM temp worker, now in a skilled trades apprentice program, told Michigan’s public radio station last week that being a temp was one of the worst times of her life. “They have a way of pitting you against a permanent employee where you feel like, if you go the extra mile, if you work a little bit more than your union brother or sister, that will give you an opportunity to eventually get hired in full time and that’s not the case,” she told the radio station.

Lichtenstein believes it’s clear that these two-tiered systems are weakening labor organizations. “And it’s not just a humanism or good-feeling thing,” he said. “It’s also a recognition that this is going to divide and then destroy the union.”

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Teacher Unions Are ‘Bargaining for the Common Good’

Originally published in The American Prospect on June 16, 2016.
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This week, the Los Angeles school board voted to approve a new bargaining agreement with UTLA, the city’s teachers union. Local community organizations—like Los Angeles Alliance for a New Economy, Alliance of Californians for Community Empowerment, InnerCity Struggle, and the Advancement Project—hailed the “groundbreaking” agreement for directing more resources towards students in high-needs schools. Some specific items UTLA bargained for included hiring a Pupil Services and Attendance counselor for high-poverty high schools, and hiring a new teacher for the 55 most needy elementary schools in order to reduce class size. Union members voted overwhelmingly in support of this new contract a week earlier.

“We commend UTLA’s innovative leadership in leveraging its bargaining power to deliver real and impactful investments for low income communities of color,” said John Kim, the Advancement Project’s executive director, in a statement.

UTLA’s president, Alex Caputo-Pearl, said in an interview that his union sees collective bargaining as an important tool available to fight for equity and justice. “A lot of people consider teacher union contract negotiations to be about narrower issues like salaries, benefits, and work rules—and all of those are important and we deal with those—but we’re using these agreements to expand what the union goes to the table for.” Caputo-Pearl says UTLA can ultimately be a vehicle to push for collaborative policy alongside community organizations. “We’re bargaining for the common good,” he declared.

This idea of “bargaining for the common good”—and working in partnership with local allies—is not a new idea for labor unions, but its potential has never been fully realized, and past efforts have not gone deep enough. One major obstacle has been that labor law tries to limit unions to bargaining just over issues of wages and benefits.

“Unions have been significantly hobbled by the legal regime, and a lack of imagination to challenge it,” says Stephen Lerner, a longtime labor organizer.

But now, partly because of the historic action the Chicago Teachers Union took in 2012, when its members went on strike not just for themselves, but also for increased public services for the broader community, more and more unions have started to reconsider their fundamental roles and responsibilities. By expanding their bargaining demands beyond wages and benefits, unions are recognizing that they can more fully support, and engage their community partners—and get those community groups to support them in return.

“I think there’s a growing feeling that if you operate within the confines of the law, you restrict the things that potentially give you power,” says Lerner. “We have to be willing to go beyond what the law allows.”

In 2014, leaders from public sector unions and community organizations gathered at Georgetown University for a national conference, entitled “Bargaining for the Common Good,” aimed at charting this new path forward. Writing in Dissent, Joseph A. McCartin, the director of the Kalmanovitz Initiative for Labor and the Working Poor at Georgetown, said that three distinct priorities emerged from the proceedings: using the bargaining process as a way to challenge the relationships between government and the private-sector; working with community allies to create new, shared goals that help advance both worker and citizen power; and recognizing militancy and collective action will likely be necessary if workers and citizens are to reduce inequality and strengthen democracy.

The time had come, in sum, to politicize bargaining.

A burst of activity followed the Georgetown conference. “It’s been amazing to see how many unions, community groups, and people have adopted the ‘bargaining for common good’ frame and language,” says Lerner.

This past December in Minneapolis, a coalition of unions and community groups brought 2,000 people together to craft a collective agenda for social justice. “Participants highlighted the immense control wielded by a dozen huge corporations, including U.S. Bank, Target, and Wells Fargo, over Minnesota’s economy,” wrote McCartin, and “agreed to collaborate on an array of interlocking campaigns and direct actions in 2016.” Since then, the groups have already successfully pushed for paid sick leave in Minneapolis, and similar ordinances are on the horizon in Saint Paul and Duluth. Groups that can endorse candidates are also working together “with an eye toward building independent political power and wielding greater influence in state elections,” says Dan McGrath of TakeAction Minnesota.

Last summer in Seattle, teachers went on strike for five days—their first strike against the district in 30 years—winning not only cost-of-living increases, but also a guarantee for daily recess for all elementary school students, and the creation of “equity committees” to address the disproportionate discipline of black and brown students.

In Saint Paul, the teachers union began to rethink collective bargaining as far back as 2013, convening regular meetings with parents and community members to formulate a shared vision. When the school district refused to negotiate with the union over their community-driven proposals, insisting that teachers could only bargain on matters related to wages and benefits, the union stood its ground.

Teachers held “walk-ins,” launched social media campaigns, and threatened to go on strike. In the end, teachers won expanded preschool programming, reduced class sizes, reduced testing, and established more equitable access to nurses, librarians, counselors, and social workers. “I had negotiated almost a dozen previous contracts for the [union],” said Mary Cathryn Ricker, the former Saint Paul teachers union president. “But, for the first time, I felt that signing a contract was just one step in building a larger movement.”

Ricker now serves as executive vice-president for the American Federation of Teachers, but the work she started in Saint Paul continues. This year the union negotiated a new contract, filled with more community-oriented provisions, such as increased funding for alternatives to punitive discipline policies.

“For too many years we just dealt with the problems we saw from within the walls of our classroom, but now we understand that our contract is the most powerful document we have to improve the learning conditions for our students,” says Denise Rodriguez, the current Saint Paul local president, in an interview.

Caputo-Pearl cites the Alliance to Reclaim Our Schools, a network that formed in 2014 comprising ten national organizations, including the American Federation of Teachers and the National Education Association, as a key factor helping to drive this labor shift. “They’ve helped us reframe the conversation around bargaining and move this process forward,” he says.

Indeed, the effort is growing.

Last month, the NEA and the Center for Innovation in Worker Organization at Rutgers organized a two-day conference for teacher union locals across the Northeast region, focused on bargaining for the common good. It was the first geographic gathering of its kind. Participants explored how to bargain for issues like adequate nutrition for children, strong public libraries, longer recess, and smaller class sizes. A host of community organizations came, as well as representatives from the Seattle and Chicago teachers locals, who spoke about their own “common good” organizing.

“The members loved hearing about unions being on the offense, rather than the defense,” says Lerner.

“We offered locals a chance to think more deeply about their upcoming contract negotiations,” says Secky Fascione, NEA’s director of organizing. “We’re really watching these ‘a ha’ light bulb moments happen for members when they realize that bargaining can once again be a powerful tool for the issues most prevalent in our lives.”

Can Teachers Unions Help Online Charter Schools?

Originally published in The American Prospect on November 27, 2015.
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In a major win for the movement to organize charter schools, a California state labor board recently ruled that teachers working for the state’s largest online charter network could form a union.

Teachers for the network, known as the California Virtual Academies, have been battling since April of 2014 with administration officials who refused to negotiate. That’s when more than two-thirds of the so-called CAVA network’s teachers voted in favor of unionizing.

Roughly 15,000 students attend CAVA’s 11 campuses across the state. CAVA administrators had argued that teachers at those disparate campuses should form their own individual unions instead of organizing a single union that would represent them all.

In a 77-page legal decision, the California Public Employment Relations Board (PERB) rejected this argument—setting the stage for CAVA teachers to move forward with their network-wide union. The California Teachers Association (CTA), a state affiliate of the National Education Association, will serve as their exclusive bargaining representative.

To teachers who have been agitating for a union, gaining the leverage to improve working conditions is a key first step to boosting student performance—something the online charter sector greatly needs. The teachers’ labor victory comes on the heels of several recent reports concluding that online charter schools are performing extremely poorly. Some 200,000 students take online classes through such institutions nationwide.

“Academic benefits from online charter schools are currently the exception rather than the rule,” stated researchers in a report released by the Center for Research on Academic Outcomes on October 27. It was one of three different research studies released last month that arrived at similar conclusions.

Earlier this year, the progressive group In the Public Interest, which focuses on contracting and privatization, issued a report that looked specifically at problems within the CAVA network. It found evidence of poor academic outcomes, financial conflicts of interest, and insufficient supports for teachers, among other things.

CAVA is managed by K-12 Inc., a publicly traded company based in Virginia that made $55 million in profits last year. The K-12 Inc. schools offer classes to some 14,500 students across the country.

K-12 Inc. officials diputed the methodologies behind the critical reports. But the CAVA teachers who have been organizing for a union said the findings did not surprise them.

“I think those reports actually helped us because they just reinforced what we were already seeing with our own students,” said Stacie Bailey, a CAVA teacher on the organizing committee.“We’ve been trying to push the school to focus more on instruction for a long time.”

Bailey actually spent several years working as a CAVA administrator, until she grew so frustrated with how things were run that she went back into teaching.

“Personally, I joined the union drive because I just see that teachers do not have a voice at our school,” said Bailey. “It’s too top-town. I tried to give teachers that voice while working as an administrator, but I was not successful.”

Working for an online charter school poses some unique challenges for teachers looking to organize. “We engage in the workplace from our own homes, we are isolated, we do not see each other,” said Jen Shilen, a high school history and economics teacher who worked at CAVA from the fall of 2012 up until this past summer. “The process of building rapport with colleagues can be challenging.”

CAVA teachers say they grew interested in the idea of forming a union when their workloads and responsibilities spiked dramatically beginning in the fall of 2013—particularly when they were asked to perform more clerical duties. More paperwork meant less time to work directly with students, teachers say. Organizing talks kicked off at the end of 2013, and CAVA teachers soon approached the California Teachers Association for assistance.

“Some of us used to work for union protected schools, so we knew who to talk to,” explained Shilen. CTA helped the 700 teachers fan out across the state to coordinate with one another; helped them with press outreach, and connected teachers with legislators.

The union vote took place in the spring of 2014. “It was rather surprising that it was as successful as it was,” remarked Bailey. “We had to call every teacher, and send them a petition and they had to print it, sign it, and mail it back to us. That’s a lot to ask of someone, and we ended up getting a super majority voting for the union.”

But CAVA administrators rejected the petition, insisting that the teachers did not constitute one legal entity. “CAVA’s argument was that CAVA does not exist,” said Shilen, wryly.

What came next was a protracted legal battle, including five days of hearings in a state administrative court in February and March, with lawyers filing their legal briefs in May. In June, 16 teachers filed 69 complaints against CAVA on a variety of grounds, including violations student privacy laws, misuse of federal funds, and inadequate services to students with disabilities. CAVA’s senior head of schools, Katrina Abston, dismissed the complaints.

Teachers have waited since mid-May for the decision from the state Public Employment Relations Board, which arrived on October 30. “We were hoping the decision would come in July, about six weeks after the lawyers turned in their briefs,” said Bailey. “It took five months.”

CTA President Eric Heins praised the PERB decision in a statement and urged CAVA administrators not to appeal this “historic ruling.” Now, Heins stated, “teachers can begin to address the problems that are hurting their students, such as insufficient time spent on instruction, high teacher turnover, and too much public money going out of state.”

The CTA’s support for CAVA teachers has raised some eyebrows, particularly since the union has staked out some anti-charter policy positions over the past decade. As I reported in The American Prospect in June, the relationship between charter teachers and unions is evolving and complicated.

CAVA administrators, who did not return The American Prospect’s request for comment, have moved to appeal PERB’s decision.

“The ruling states CTA may seek collective representation of all teachers at all CAVA charter schools, notwithstanding that CAVA is not itself an established public school employer,” Abston told the San Bernadido Sun this month.

But CAVA teachers are unfazed.

“Even if they’re going to appeal, we’re still a union; it doesn’t stop our forward momentum,” said Bailey confidently. “We’re not worried about it.”

 

Western Maryland, The 51st State? Don’t Laugh Yet

Originally published in the JHU Politik on September 29th, 2013.
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49-year-old Carroll County resident, Scott Strzelczyk, is leading a grassroots movement to secede from the state of Maryland. Dubbed “The Western Maryland Initiative,” individuals in the five western counties of Garret, Allegany, Washington, Frederick and Carroll, are working to rally political support for what is certain to be an unattainable goal.

Demographically, the five counties are populated with more than 653,000 people, greater than both the populations of Vermont and Wyoming. And geographically, the western Maryland region is larger than both Rhode Island and Delaware. Consequently, Strzelczyk insists that his plan is not wholly unrealistic and that secession would not be from the Union itself, but from the “oppressive and abusive treatment from Annapolis.”

Unsurprisingly, Western Maryland’s push for secession has been met largely with ridicule. One writer in The Baltimore Sun suggested that “a simpler solution for everyone involved” would be for the aggrieved to just move across the state line to West Virginia. Another Sun writer pointed out that western Maryland counties contain about 11 percent of the state’s population, yet account for only 10 percent of Maryland’s tax base and receive more than 13 percent of Maryland’s total unemployment benefits. It’s clear that secession would entail major, likely untenable, economic consequences.

Across the country, several other secession movements have cropped up in upstate New York, the Upper Peninsula in Michigan, Northern California and various northern Colorado counties. These radical movements consist of primarily white, conservative voters, living in predominantly rural regions. Their outrage stems largely from legislation around gun control, energy use and increased taxes.

The Western Maryland Initiative shares some characteristics with these other secession movements, but it is distinct in its primary grievance: gerrymandering, the process of deliberate redistricting in order to influence an election’s outcome.

Gerrymandering is one of those terms we are taught in high school government class. Perhaps we shrug when we hear it today and say, “well yeah it’s bad, but everyone does it.”

It’s certainly true both parties are guilty of redistricting. However, Maryland’s record is particularly disappointing. An independent geospatial analysis firm ranked Maryland as the most gerrymandered state in the entire country. Take a look at a map of the 2012 congressional voting districts for yourself. There are reasons whyThe Washington Post described District 3 as resembling “blood spatter from a crime scene.”

Federal law dictates that legislators use new Census data to redraw congressional districts every ten years. However, when the Maryland legislators proposed their newly drawn districts, Common Cause of Maryland, the League of Women Voters, civil rights groups, and a supermajority of the Montgomery County Council met them with outrage. In response, Republicans managed to place “Question 5,” a redistricting repeal referendum, on the 2012 ballot. But redistricting never stood a chance of eliciting the type of political attention that some of the other Maryland referendum items could, like marriage equality and the Dream Act. Ultimately redistricting passed with a pretty high margin, even though many on both sides agreed that it went too far.

I sympathize with these alienated conservative voters. Particularly as liberals and Democrats rally against the recent Supreme Court decision to overturn the Voting Rights Act of 1965, and as they band together to fight duplicitous voter identification laws, I find their silence on this matter suspicious at best.

Some will say Maryland’s redistricting is just “tit for tat.” Republicans are gerrymandering Texas! Look at North Carolina! Democrats have no choice but to play dirty.

But this is false. Gerrymandering is just another form of disenfranchisement. It’s a political maneuver to make some votes count more than others, and some to not count at all. If liberals are going to be up in arms about voter suppression legislation, (which we should be) then we should also be concerned and sympathetic to the deep frustrations voters feel in Western Maryland due to gerrymandering. Mocking these feelings is cruel and antidemocratic.

Maryland redistricting should model states like Arizona that have created an Independent Redistricting Commission, responsible for drawing new district boundaries independently of their state legislature.

Who knows how long Scott Strzelczyk’s campaign will last, though don’t expect to see a 51st state anytime soon. But in the meantime, at the very least, hold off with the snark.