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National Labor Board Defends Workers, Conservatives Freak Out
During the Bush years, many progressives gave up hope that the government could really make companies pay when they broke the law. Now a big company may have to pay a big price for illegally punishing workers. Last month the National Labor Relations Board, the federal body that enforces labor law, issued a complaint charging that Boeing illegally transferred the production of a line of aircraft out of Washington State. Boeing is accused of transferring the production to punish the workers there for going on strike. Punishing workers for union activity is retaliation, and it’s illegal. If Boeing is found guilty, it could be made to transfer the whole production line back. Naturally, the prospect of the Labor Board seriously enforcing labor law has Republicans freaking out.
What started as an under-the-radar story has been blossoming into a hot button issue over the past two weeks. Newly-elected South Carolina Governor Nikki Haley, whose state is both the new site of Boeing’s production and host of a crucial presidential primary, has seized the moment. She made clear that presidential contenders seeking her support had better bash the labor board, and they’re obliging. Former Minnesota Governor Tim Pawlenty took a whack at the NLRB at the first presidential debate. Right-wing zeitgeist-meister Newt Gingrich timed an anti-NLRB op-ed on the topic to coincide with the announcement of his presidential campaign and highlighted the issue this weekend on Meet the Press. Republican senators held a pro-Boeing press conference with Governor Haley last Monday and brought the company’s Vice President to testify last Thursday. The temperature will keep rising as Boeing’s June NLRB trial approaches and more presidential contenders step up.
Right-wingers are rising to defend Boeing, bash the NLRB, and blame Obama. But rather than debate retaliation against workers, conservatives want to conjure phantom menaces: bureaucrats micro-managing production, Democrats punishing “Right to Work” states, and union bosses paralyzing job creators.
Liberals Against Job Creation?
Conservatives are making four misleading arguments about the Boeing case. The first argument is that this case is about liberals getting in the way of job creation. Pawlenty took up this line at the Republican debate in South Carolina:
“You have this administration through the National Labor Relations Board telling a private company that they cannot relocate to South Carolina and provide jobs in this state, and they’re good-paying jobs, and they’re needed jobs…I just want to make clear the idea that the federal government can tell a private business where they can and cannot be is a whole new line that this administration has crossed and it’s outrageous.”
Who wouldn’t be against Barack Obama’s “No Jobs for South Carolina” policy? Good thing it doesn’t actually exist.
The real story begins in 1975, when Boeing workers in Puget Sound, Washington, organized with the International Alliance of Machinists (IAM) and won union recognition. Over the next 36 years, the workers went on strike five times – most recently in 2005 and 2008. In 2009, Boeing announced its intention to transfer the production of a new line of Dreamliner planes, which were expected to be built in Puget Sound, to a non-union facility in South Carolina instead. The IAM filed charges with the NLRB accusing Boeing of illegal retaliation.
After a year-long investigation, the NLRB issued a complaint, meaning it found enough merit in the charges to proceed to a trial. Most NLRB cases that reach the complaint phase are resolved with a pre-trial settlement, but there are no signs of one in the works. The NLRB based its complaint on five separate examples of Boeing managers publicly blaming strikes for the transfer of production: once in a memo to employees, once in a recording of a conference call Boeing posted on an employee website, and three times in the press. The complaint alleges that by transferring the planned expansion away from Puget Sound and repeatedly telling the workers and the public that Puget Sound would lose those jobs because of the strikes, Boeing was retaliating against the strikers and acting to discourage workers from future union activity. If Boeing did that, it broke the law.
A Threat to Every Business?
The second argument conservatives are making is that the Boeing complaint represents a bureaucratic power grab that threatens every business. Governor Haley wrote in the Wall Street Journal that this was “an unprecedented attack on an iconic American company that is being told by the federal government—which seems to regard its authority as endless—where and how to build airplanes.” South Carolina Senator Jim DeMint told the DC press conference that “Every business in America should see this as a personal threat.”
The NLRB has the authority and the responsibility to investigate and rule on violations of labor law by employers or unions. It doesn’t tell anybody how to build an airplane. When Congress passed the National Labor Relations Act, it told companies they can’t threaten or retaliate against workers for being active in a union.
The only “threat” businesses should see in the NLRB decision is this: if you break the law, there’s a chance you’ll get caught, and punished. If your boss says, “I’m cutting your hours because you won’t have sex with me,” he’s broken sexual harassment law. If your boss says, “I’m cutting your hours because you’re active with the union,” he’s broken labor law. It’s retaliation, and it’s illegal - though too often bosses get away with it anyway.
Conservatives didn’t complain when the NLRB, with a Bush-appointed majority, issued rulings allowing bosses to ban even platonic “fraternization” with co-workers outside of work, or to redefine workers as “supervisors” who lack legal protections for organizing. If Haley believes the government shouldn’t have the authority to investigate or punish anti-union retaliation, she should ask the state’s congressional delegation to change the law. She could even make her new Secretary of Labor Catherine Templeton, a professional union-buster, available to testify about the virtues of her craft.
“Right to Work” Retaliation?
The third argument conservatives are making is that Obama’s NLRB is punishing South Carolina for its “Right to Work” law. On Meet the Press, Newt Gingrich accused the NLRB of “basically breaking the law to try to punish Boeing and to threaten every right-to-work state.” South Carolina Senator Lindsey Graham warned in a statement that “Left to their own devices, the NLRB would routinely punish right-to-work states that value and promote their pro-business climates.”
Conservatives are trying very hard to convince the public that the NLRB complaint has something to do with South Carolina being a “Right To Work” state (that is, a state that bans union contract language requiring all employees to pay for the costs of their representation). That’s a red herring. Boeing could have transferred the production to California or Calcutta and it would equally have violated the law -- as long as it announced that it was moving production because the Washington workers kept exercising their right to strike. Conservatives are on comfortable ground railing against the feds trampling on states’ rights, and so rail they will. But they’re turning the legal question on its head: They’d rather talk about imagined government retaliation against the good people of South Carolina than all-too-real employer retaliation against workers for collective action.
Such retaliation has reached epidemic proportions in the United States. A comprehensive study of NLRB data by Cornell researcher Kate Bronfenbrenner found that in the lead-up to union recognition elections the majority (57%) of employers threatened to close the worksite. Despite being illegal, anti-union retaliation by unionized and non-unionized companies often pays off. As Human Rights Watch has observed, employers get away with it all the time. And when they do pay, it’s a pittance. The Boeing case has inflamed the Right because the potential penalty facing Boeing – resuming the production of a second line of airliners in Pugent Sound – is actually significant.
Ruled By Your Workers?
The final argument conservatives are making is that labor law enforcement will leave bosses helpless at the whims of their employees. In a statement, Senator Graham warned that "the NLRB complaint would allow unions to hold a virtual 'veto' over business decisions." But what Graham and company want to deny workers is not a “virtual veto,” but a voice on the job.
Lurking behind such rhetoric is a “Father Knows Best” mentality about American business: Workers should be grateful for whatever jobs and conditions the boss deigns to offer them. When Dad says he can’t pay you more without going out of business, or the health insurance has gotten too expensive, or you don’t need safety gloves, he must have a good reason. And when the kids complain too much and Dad decides to punish them for speaking up? His call.
Like Scott Walker in Wisconsin, Lindsey Graham doesn’t like that collective bargaining allows workers the chance to say “no” to their boss. For decades, Boeing managers in Puget Sound have had to sit across the table as equals with their employees. They’ve had to compromise. When they wouldn’t offer a deal their employees were willing to accept, they’ve seen workers go out on strike, and they haven’t been able to stop them. Now management has made explicit the threats that companies insinuate all the time, and politicians are rising to their defense.
Conservatives would rather scream “Don’t Tread on South Carolina” than “The Corporation is Always Right.” But beneath the talk of free choice and federalism is a campaign to intimidate the National Labor Relations Board out of enforcing the law. That will only make it easier for companies to intimidate their employees out of asserting their rights.
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20 Comments so far
Show AllYes, this should be taken personally by the business community - stop f***ing your workers over. The phrase "business decision" always struck me as odd. Decisions regarding the health and safety of workers, as well as the financial health of the communities wherein the business and the employees are located, are moral and ethical decisions. Making such decisions is too often beyond the scope of owners and managers.
You have described about half the shareholders. The other half is the top 1%. My guess is that the owners you mention are in the top 40%.
Free market theory implies/predicts that the other 60% will benefit from the decisions of the business community even though they are not formally part of the equation. When it doesn't, the system should be examined for flaws, not defended.
The wealthiest 1% od the US owns 38% of all stocks owned.
The wealthiest 20% owns 91% of all stock.
Your democartic stock ownership model is highly innaccurate and a classist deception.
So what's Patty Murray's position on this? Didn't she defend Boeing's decision to move its headquarters to Chicago ten years ago?
Boeing HQ isn't heavily unionized, I love it Boeing had been threating to go to China, but realized their patients would be ripped off before the assy-line got started. Sure Chinese workers are cheaper but the place is a vipers-den when it comes to industrial secerets.
Boeing needs to get slapped and hard, they've been venemiously anti-union from the start. Somebody needs to remind these Corporate-Elites this is a nation of LAWS! and somewhere either we need to enforce them or the entire nation will blow-up like some African cess-pit wher everybody shoots at everybody else as long as they got ammo!
Both the government and the Corporate Unions have been too complacient for too long now in not protecting the workers!
>^^<
"the entire nation will blow-up like some African cess-pit wher everybody shoots at everybody else as long as they got ammo!"
Whether intentional or not, this is a racist statement.
nolo, that's why we need unions, to provide a balance between the interests of the shareholders which of course is to maximize profits without consideration of the needs of the employees (economic and physical safety). Without unions, and dependent upon the whim of the governing party in power - and we know how useful that can be - hostile in the case of Republicans, tepid in the case of Democrats to include the needs of workers in the equation, workers end up at the tender mercies of management.
I talk with retail employees about unions; they are all for it, but terrified about being overheard. That's outrageous, but management loves it and shareholders profit from it.
So where do you stand? Starve employees to maximize shareholder investment or find a middle ground, a balance, where all benefit?
Try starting with the Taft Hartley Act and move on to union busting including Reagan firing all the air traffic controllers. After which he said he never fired anyone in his life. Employers harass, intimidate and fire employees promoting unionization with impunity. Yes, it's against the law, but no one's stopping them. Certainly not Obama. Is his Justice Department stepping up to the plate? Oh that's right, they're too busy chasing medical marijuana users. Got to keep those priorities straight.
The law specifically states a company cannot blackmail striking employees by threatening to move their operations elsewhere if they strike but that is exactly what Boeing did, and they even left a paper trail and public statements of doing it. Clearly corporate executives exist in a rarified atmosphere where they believe they can do anything they want. Understandable, for the evidence supports that belief. So just once, they get pulled up short, all their minions come rushing to the rescue and OMIGOD the squealing can be heard on Mars.
So nolo, where are you on this? Are you asserting that corporations are above the law? We are talking about a law here, even if it hasn't been enforced until now. That's a problem with not enforcing laws; people don''t realize we have them. No wonder the rich are stealing us blind.
Sorry, but this is against the law. CLEARLY. It wasn't about anything but breaking the union, and that is ILLEGAL. What part of ILLEGAL is eluding you?
What the union busting of the last 30 years should tell you is that they are DESPERATELY needed, now more than ever. Corporations make out like bandits, and then tell their employees how to get health care from the welfare department of the very counties that are giving the corps tax breaks just for BEING there. Wages haven't even kept up with inflation, let alone grown, in over 3 DECADES, the rich are sitting on well over $1.5 TRILLION they haven't paid taxes on and refuse to invest in this country. In fact, they are working against HUMANS on an hourly basis. More workers are dying on the job due to unenforced safety standards, over 50 MILLION in this country have NO health care, and the corporations are doing everything possible to turn us into the largest third world nation on the planet. It's been a concerted effort by the very greedy and selfish to denigrate and demean the unions at every turn, and people like you have listened to it like it's gospel. And that is EXACTLY what big business and the ultra rich WANT you to do. The more time you spend helping THEIR cause, the less likely you are to even recognize that you're slitting your own throat with every statement.
What this attack SHOULD tell you is that the rich are VERY devious, selfish, and determined people whose goal is to destroy everything that gives ANYONE else the same chances THEY had to get rich, or even just to be comfortable in a home they OWN. They live to take away everything in YOUR pocket and put it in theirs. They have been at it for 30+ years, and the results are pretty devastating. It's not the union's fault that this happened, it's the fault of the people to swallow that line of right wing BULLSHIT that says you are more powerful by yourself.
if you think the time for unions if over, ask yourself this: At what point did corporations become HUMAN? I don't give a flying rat's ass what the SCOTUS says, at what point did corporations start showing compassion, decency, caring, or even concern about it's employees, let alone ANYONE else? Do you REALLY think that you will EVER get a fair deal of ANY kind from one by yourself? Yeah, DREAM ON. Corporations are now and have ALWAYS been the most heartless, inhuman institutions that man has ever created. They exist for NOTHING but money, and that is a terrible thing to have to lose your life, soul, future and humanity over.
If you REALLY think that you are at any kind of bargaining position by yourself, then I feel incredibly sorry for you. The fall you are gong to be taking one day will be HUGE. And there won't be anyone there to catch you or pick up the pieces after you go down. You are an island unto yourself, remember? You don't DESERVE anyone under those circumstances. Unions provide SOME level of security. Are they perfect? Of course not. But they are a far sight better than having to go up against some corporation by yourself just to get treated like a human being with SOME amount of dignity. Enjoy your life as some little cog on the corporate wheel. And when they cut you loose and say thanks for wasting your life in OUR pursuit of profits. her's your Timex, go die, you will have absolutely NOTHING to show for it, and they will be even bigger. Enjoy!
Well said,WJM. How did the corporations manage to snooker so many people into thinking they don't need anyone else? Put Ayn Rand into the drinking water?
>>>"The companies, within the law, have to do what they deem best to maximize shareholder value."<<<
Ahh, isn't that nice (eyes rolling).
The employees, within the law, have to do what they deem best to maximize their wages, health benefits, pensions, workplace and safety conditions. Oh wait, I forgot, workers have to go down on bended knee to the corporate gods who have bought off our politicians and our judges. So workers of the USA, shut up, put your head down, obey your superiors and accept your peonage and indentured servitude.
If I double posted, sorry!
nolo, "it seems to me" is not a valid legal argument, but JerzyJoe has it right. The corporations own the judges, particularly the five Supremes who "interpret" the law, ignore precedent at their convenience, and who can be counted on to rule in favor of corporations. We can thank the Democrats who saw no problem with Scalia, Alito, and Roberts, their histories notwithstanding.
BeForKids-- "We can thank the Democrats..." How true. If anyone actually pursued questions like corporate citizenship and the unitary executive theory, I didn't hear them. They divert us with school prayer, sex ed, flag burning, etc etc; while slipping totalitarianism under the radar.
Here's another gem:
>>>"The fact that private sector unions are dwindling -- down to 6% of the workforce now -- has to tell everyone something about their continued utility. Is it that union management is out-of-touch, self-interested, not all that helpful?"<<<
Excuse me, but the reason that unionization of the private sector is down to between 6% and 7% is because of the rampant union busting that has been going on for more than 30 years. It's not as if it's easy to form a union, one mention of a union and you are either harassed and/or fired. The corporations spend millions propagandizing against unions. There's nothing like blaming the victims for the poor unionization rate in this country. Sweden has a unionization rate of about 70%, Finland's is above 80%, France, Canada, Germany and Japan have unionization rates that are more than twice ours (USA total unionization rate of about 11.9%). Nolo seems to be making the Walmart arguments against unions.
WJM: Great post!
Nothing maximizes shareholder value like minimizing the costs of labor, and in this corporations have succeeded magnificently, partly by concerted efforts to demean organized labor. By one estimate I happened across, worker productivity in the United States has increased by 105% since sometime in the '70's. Wages ordinarily rise when productivity increases. After close to 40 years of increased productivity, however, workers now earn 7% less than they used to in inflation-adjusted wages. Why? Because owners/employers have managed to capture a historically high share of the profits generated by their enterprises. Whatever their faults, unions would help to redress this imbalance.
So Obama's NLRB is pretending to defend former Boeing employees from Boeing's retaliatory practices in a long legal process leading up to the 2012 election...
Good luck that.
-30-
Fair wages should be paid, where ever they put the plants.