Weekly Audit: Hostile Takeover Threat Spurs Concessions from Michigan Unions

By Lindsay Beyerstein, Media Consortium blogger

Michigan’s new Emergency Manager Law is already forcing major concessions from unions. The law gives the governor the power to declare a city insolvent and appoint an emergency manager with virtually unlimited power to reorganize every aspect of city business, including dissolving the city entirely. The emergency manager even has the power to terminate collective bargaining agreements.

As a result of these expanded new powers, public employees unions in some Michigan municipalities are already making large preemptive concessions to keep their cities from tripping any of the “triggers” in the new law that might give the governor an opening to send in a union-bustingemergency manager, Eartha Jane Melzer reports in the Michigan Messenger.

In Flint, the firefighters’ union agreed to increase contributions to health insurance and give up holiday pay and night shift differentials. Flint Firefighters Union President Raul Garcia told the Wall Street Journal that these concessions were driven by fear of a state takeover of Flint. “I would rather give concessions that I would like than have an [emergency financial manager] or something of that magnitude come in and say this is what you are going to do,” Garcia said.

The new law also gives the Emergency Manager the power to privatize prisons, Melzer notes.

Detroit grows green

The citizens of Detroit aren’t waiting around for an emergency manager to take over. The city’s industrial economy is dying, but its grassroots economy is stirring to life, Jenny Lee and Paul Abowd report in In These Times. Detroit residents have been growing their own food in town for decades, but recently activists and the city have joined forces to link many small producers into a network that will provide food security for the city.

Wal-Mart and wage discrimination

Next week, the Supreme Court will take up the case of 100 women who are suing Wal-Mart for wage discrimination. As Scott Lemieux explains in The American Prospect, the Court will decide whether these women can band together to sue the nation’s largest retailer, or whether each must sue the firm individually.

Lemieux argues that, for the sake of women’s rights at work, it is very important that these Wal-Mart employees be allowed to sue together instead of one at a time:

Given the compelling stories these individual women can tell, does it matter whether they can file suit collectively? Absolutely, for at least two reasons. First of all, only a class-action suit can properly create a record of the systematic gender discrimination at Wal-Mart. Any individual case can be dismissed as an anomaly or a misunderstanding, but the volume of complaints makes clear that gender discrimination was embedded deeply within the culture of the corporation, a very relevant fact for a discrimination suit.

Litigation is expensive and time-consuming, for the individuals and for the court system. Forcing victims of discrimination to sue one by one makes it less likely that they will seek justice, especially if they’re suing because they were underpaid in the first place. Wal-Mart claims that the class is too large to be allowed to proceed, and that the women couldn’t possibly have similar enough claims. But as Lemieux points out, the class is huge because Wal-Mart is huge.

War and the deficit

Jamelle Bouie writes at TAPPED, in response to the United States’ new military commitments in Libya:

I just wish we could at least acknowledge the obvious truth: conservatives don’t care about deficits but will use them to cut spending on poor people. When it comes to things they like — wars, for instance — they’re willing to pay any price.

The U.S. fired 110 Tomahawk Missiles at Libya on Saturday, at an estimated total cost of $81 million, or 33 times the annual federal funding for National Public Radio.

Sally Kohn of TAPPED notes that the United States scraped together $2.3 million worth of “blood money” to pay off the families of the victims of Raymond Davis, a rogue CIA operative who shot and killed two men who tried to rob him in Pakistan. Laura Flanders of GRITtv calculates that $2.3 million ransom for a single killer would have paid the salaries of 45 Wisconsin public school teachers for a year.

Public pensions 101

We often hear that public pensions are unfunded. On the Breakdown, Chris Hayes of The Nation asks economist Dean Baker what this actually means. Baker explains that s0-called “defined benefit” pensions have become rare in the private sector, but remain relatively common in the public sector. A defined benefit pension guarantees the pensioner a certain income. Most private sector pensions are so-called “defined contribution” plans, which means that employer puts aside a certain amount of money each month for the employee, but there’s no guarantee how much return the pensioner will eventually get on that investment.

A state pension fund is considered unfunded if the assets the fund has today aren’t sufficient to cover the defined benefits that are due to workers over the next 30 years. Baker notes that many funds are a lot healthier than they look because their values were calculated at the nadir of the stock market in 2009. The market has since made up a large percentage of that ground. A handful of states were mismanaging their pension funds, but most states have been responsible.

Ethical outlaws

Bea is a manager of a big-box chain store in Maine. The company pays her staff between $6 and $8 an hour and many are struggling. Even as she tries to keep a professional atmosphere in the store, Bea has been known to bend the rules to help an employee in need, as Lisa Dodson describes in YES! Magazine:

When one of her employees couldn’t afford to buy her daughter a prom dress, Bea couldn’t shake the feeling that she was implicated by the injustice. “Let’s just say … we made some mistakes with our prom dress orders last year,” she told me. “Too many were ordered, some went back. It got pretty confusing.” And Edy? “She knocked them dead” at the prom.

Andrew, a manager in the Midwest is quietly padding his employees’ paychecks because he knows their wages aren’t enough to live on. Andrew knows he might be accused of stealing, but he does it anyway because the alternative is unthinkable.

Dodson interviewed hundreds of low- and middle-income people about the economy between 2001 and 2008. Along the way, she stumbled on what she calls “the moral underground,” a world where managers bend the rules at corporate expense to enable their low-wage staff to get by. It is legal to pay people less than a living wage, but increasing numbers of people like Bea and Arthur have decided that the situation is morally unacceptable, and quietly acted accordingly.

This post features links to the best independent, progressive reporting about the economy bymembers of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The MulchThe Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

 

Weekly Audit: Hostile Takeover Threat Spurs Concessions from Michigan Unions

By Lindsay Beyerstein, Media Consortium blogger

Michigan’s new Emergency Manager Law is already forcing major concessions from unions. The law gives the governor the power to declare a city insolvent and appoint an emergency manager with virtually unlimited power to reorganize every aspect of city business, including dissolving the city entirely. The emergency manager even has the power to terminate collective bargaining agreements.

As a result of these expanded new powers, public employees unions in some Michigan municipalities are already making large preemptive concessions to keep their cities from tripping any of the “triggers” in the new law that might give the governor an opening to send in a union-bustingemergency manager, Eartha Jane Melzer reports in the Michigan Messenger.

In Flint, the firefighters’ union agreed to increase contributions to health insurance and give up holiday pay and night shift differentials. Flint Firefighters Union President Raul Garcia told the Wall Street Journal that these concessions were driven by fear of a state takeover of Flint. “I would rather give concessions that I would like than have an [emergency financial manager] or something of that magnitude come in and say this is what you are going to do,” Garcia said.

The new law also gives the Emergency Manager the power to privatize prisons, Melzer notes.

Detroit grows green

The citizens of Detroit aren’t waiting around for an emergency manager to take over. The city’s industrial economy is dying, but its grassroots economy is stirring to life, Jenny Lee and Paul Abowd report in In These Times. Detroit residents have been growing their own food in town for decades, but recently activists and the city have joined forces to link many small producers into a network that will provide food security for the city.

Wal-Mart and wage discrimination

Next week, the Supreme Court will take up the case of 100 women who are suing Wal-Mart for wage discrimination. As Scott Lemieux explains in The American Prospect, the Court will decide whether these women can band together to sue the nation’s largest retailer, or whether each must sue the firm individually.

Lemieux argues that, for the sake of women’s rights at work, it is very important that these Wal-Mart employees be allowed to sue together instead of one at a time:

Given the compelling stories these individual women can tell, does it matter whether they can file suit collectively? Absolutely, for at least two reasons. First of all, only a class-action suit can properly create a record of the systematic gender discrimination at Wal-Mart. Any individual case can be dismissed as an anomaly or a misunderstanding, but the volume of complaints makes clear that gender discrimination was embedded deeply within the culture of the corporation, a very relevant fact for a discrimination suit.

Litigation is expensive and time-consuming, for the individuals and for the court system. Forcing victims of discrimination to sue one by one makes it less likely that they will seek justice, especially if they’re suing because they were underpaid in the first place. Wal-Mart claims that the class is too large to be allowed to proceed, and that the women couldn’t possibly have similar enough claims. But as Lemieux points out, the class is huge because Wal-Mart is huge.

War and the deficit

Jamelle Bouie writes at TAPPED, in response to the United States’ new military commitments in Libya:

I just wish we could at least acknowledge the obvious truth: conservatives don’t care about deficits but will use them to cut spending on poor people. When it comes to things they like — wars, for instance — they’re willing to pay any price.

The U.S. fired 110 Tomahawk Missiles at Libya on Saturday, at an estimated total cost of $81 million, or 33 times the annual federal funding for National Public Radio.

Sally Kohn of TAPPED notes that the United States scraped together $2.3 million worth of “blood money” to pay off the families of the victims of Raymond Davis, a rogue CIA operative who shot and killed two men who tried to rob him in Pakistan. Laura Flanders of GRITtv calculates that $2.3 million ransom for a single killer would have paid the salaries of 45 Wisconsin public school teachers for a year.

Public pensions 101

We often hear that public pensions are unfunded. On the Breakdown, Chris Hayes of The Nation asks economist Dean Baker what this actually means. Baker explains that s0-called “defined benefit” pensions have become rare in the private sector, but remain relatively common in the public sector. A defined benefit pension guarantees the pensioner a certain income. Most private sector pensions are so-called “defined contribution” plans, which means that employer puts aside a certain amount of money each month for the employee, but there’s no guarantee how much return the pensioner will eventually get on that investment.

A state pension fund is considered unfunded if the assets the fund has today aren’t sufficient to cover the defined benefits that are due to workers over the next 30 years. Baker notes that many funds are a lot healthier than they look because their values were calculated at the nadir of the stock market in 2009. The market has since made up a large percentage of that ground. A handful of states were mismanaging their pension funds, but most states have been responsible.

Ethical outlaws

Bea is a manager of a big-box chain store in Maine. The company pays her staff between $6 and $8 an hour and many are struggling. Even as she tries to keep a professional atmosphere in the store, Bea has been known to bend the rules to help an employee in need, as Lisa Dodson describes in YES! Magazine:

When one of her employees couldn’t afford to buy her daughter a prom dress, Bea couldn’t shake the feeling that she was implicated by the injustice. “Let’s just say … we made some mistakes with our prom dress orders last year,” she told me. “Too many were ordered, some went back. It got pretty confusing.” And Edy? “She knocked them dead” at the prom.

Andrew, a manager in the Midwest is quietly padding his employees’ paychecks because he knows their wages aren’t enough to live on. Andrew knows he might be accused of stealing, but he does it anyway because the alternative is unthinkable.

Dodson interviewed hundreds of low- and middle-income people about the economy between 2001 and 2008. Along the way, she stumbled on what she calls “the moral underground,” a world where managers bend the rules at corporate expense to enable their low-wage staff to get by. It is legal to pay people less than a living wage, but increasing numbers of people like Bea and Arthur have decided that the situation is morally unacceptable, and quietly acted accordingly.

This post features links to the best independent, progressive reporting about the economy bymembers of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The MulchThe Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

 

Weekly Audit: Massive Protest In Wisconsin Shows Walker’s Overreach

 

By Lindsay Beyerstein, Media Consortium blogger

About 100,000 people gathered in Madison, Wisconsin to protest Gov. Scott Walker’s new anti-collective bargaining law. The state Senate hurriedly past the bill without a quorum last Wednesday. Roger Bybee of Working In These Times reports:

The rally featured 50 farmers on tractors roaring around the Capitol to show their support for public workers and union representatives from across the nation, stressing the importance of the Wisconsin struggle. Protesters were addressed by a lineup of fiery speakers including fillmaker Michael Moore, the Texas populist radio broadcaster Jim Hightower, TV host Laura Flanders, the Rev. Jesse Jackson, U.S. Rep. Dennis Kucinich, U.S. Rep. Tammy Baldwin, and The Progressive editor Matt Rothschild, among others.

The bill is law, but the fight is far from over. The Wisconsin Democratic Party says it already has 45% of the signatures it needs to recall 8 Republican state senators. So far, canvassers have collected 56,000 signatures, up from 14,000 last weekend. The surge in signature gathering is another sign that the Walker government’s abrupt push to pass the bill has energized the opposition.

Polling bolsters the impression that Walker overreached by forcing the bill through with a dubious procedural trick. Simeon Talley of Campus Progress notes that, according to a recent New York Times/CBS News poll, Americans oppose efforts to limit the collective bargaining rights of public employees.

Jamelle Bouie of TAPPED notes that the enthusiasm gap that helped elect Scott Walker last year has disappeared. In June 2o10, 58% of Democrats said they were certain to vote compared to 67% of Republicans. In March 2011, 86% of Democrats and 85% of Republicans surveyed said they would certainly vote.

Firefighters shut down bank

Wisconsin firefighters found a way to get back at one of Scott Walker’s most generous donors, Madison’s M&I Bank, Julianne Escobedo Shepherd reports in AlterNet. Firefighters Local 311 President Joe Conway put a call out to his members who banked with M&I to “Move Your Money.” Firefighters withdrew hundreds of thousands of dollars of savings in cashiers checks. The beleaguered bank closed its doors at 3pm on March 10.

John Nichols of the Nation reports that other unions got in on the act. He quotes a pamphlet distributed by Sheet Metal Workers International Association Local 565:

“M&I execs gave more money than even the Koch Brothers to Governor Walker and the Wisconsin GOP,” the message goes. “M&I got a $1.7 billion bailout while its CEO gets an $18 million golden parachute. Tell M&I Bank: Back Politicians Who Take Away Our Rights (and) We Take Away Your Business.”

Nichols explains that the next big step in the fight to overturn the bill will be the Wisconsin Supreme Court election, set for April 5. Assistant Attorney General JoAnne Kloppenburg is challenging conservative state Supreme Court Justice David Prosser. Legal analysts have raised serious questions about the bill and the process by which it was passed. A court challenge to Walker’s law might stand a better chance if a liberal justice replaces the conservative pro-corporate Prosser.

Guess what? We’re not broke

Steve Benen of the Washington Monthly takes on a GOP talking point, the myth that the United States is broke. It’s a convenient claim for those who wish to make massive cuts to popular programs without having to justify taking them away. If we don’t have the money, we don’t have the money. If it’s a choice between cuts and bankruptcy, cuts suddenly seem not only acceptable, but inevitable.

But the United States has a $15 trillion economy, immense natural resources, a highly educated workforce, and countless other economic advantages. The problem isn’t a lack of resources, it’s extreme inequality of distribution. Over the last 20 years, 56% of income growth has been funneled to the top 1% of the population, with fully one third of that money going to the richest one-tenth of one percent.

Benen notes that the Republicans didn’t think we were broke when they were advocating for a $538 billion tax-cut package, which wasn’t offset by a dime of cuts.

This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

Weekly Audit: Standoff Continues in Wisconsin

 

By Lindsay Beyerstein, Media Consortium blogger

The 14 Democratic state senators who fled Wisconsin to thwart the passage of a draconian anti-union have no plans to return.

On Sunday night, a Wall Street Journal blog reported that the senators planned to return soon. Steve Benen of the Washington Monthly found it odd that the piece didn’t contain any direct quotes from the exiled Democrats. The claim that the Democrats were planning to return rested on a paraphrase of State Sen. Mike Miller said about the Democrats coming back. Miller says the Journal misconstrued his remarks and that the Dems are only coming back “when collective bargaining is off the table.”

It would be an odd time for Democrats to return. Republican governor Scott Walker has offered them zero concessions. Furthermore, as Benen observes, Walker’s popularity is plummeting. The latest poll by the Wisconsin Research Institute puts the governor’s approval rating at 43%, with 53% disapproving. A majority of respondents had favorable opinions of state Senate Democrats, public employee unions, and teachers’ unions.

Benen writes:

The significance of these polls can’t be overstated — they stiffen Democratic spines, while making Republicans increasingly nervous about standing behind an unpopular governor with an unpopular plan.

In YES! Magazine, Amy B. Dean explains why every American should care about the situation in Wisconsin. The collective bargaining rights of public employees are the central issue in this standoff. Walker is testing a radical new approach to unions and several other Republican governors are poised to follow his model if he succeeds. It is naive to assume that the war on unions will end with the public sector.

Jobs gap

Writing at The Nation, Chris Hayes explains why Washington doesn’t care about jobs. Hayes argues that Washington elites are insulated from the toll of unemployment by class and geography. The jobless rate for workers with college degrees is only 4.2%, which is less than half of the official unemployment rate of 9% and a quarter of the 16.1% underemployment rate. (The underemployment rate counts both the jobless who are still looking for work and those who have given up and left the labor force.) Furthermore, Hayes notes, the unemployment rate in greater Washington, D.C. is only 5.7%, which is lower than that of any other major city in America. He writes:

What these two numbers add up to is a governing elite that is profoundly alienated from the lived experiences of the millions of Americans who are barely surviving the ravages of the Great Recession. As much as the pernicious influence of big money and the plutocrats’ pseudo-obsession with budget deficits, it is this social distance between decision-makers and citizens that explains the almost surreal detachment of the current Washington political conversation from the economic realities working-class, middle-class and poor people face.

Even as the overall unemployment rate falls, economic recovery proves elusive for many workers of color, Shani O. Hilton reports at Colorlines.com. The February jobs report shows that the economy added 192,000 jobs, with overall unemployment falling by a tenth of a percentage point, bringing joblessness to its lowest rate since 2009. However, the unemployment rates for black and Hispanic workers remained fixed in February, at 15.3% and 11.6%, respectively.

Hilton notes that even if the economy were to add 200,000 jobs a month, it would take three years to bring general employment up to pre-recession levels.

Public innovation

The stereotype is that the private sector drives innovation. However, as Monica Potts reports in The American Prospect, industry’s well-deserved reputation for innovation is built on a foundation of publicly funded basic research. Conservatives often argue that the private sector would pick up the slack if public funding for basic research were reduced. Potts argues that public funding for basic research is essential because companies will naturally gravitate towards research that has an immediate payoff, instead of investing in cultivating deeper scientific understanding through basic research.

This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

Weekly Audit: Police Defy Order to Clear Protesters from Wisconsin Capital

 

By Lindsay Beyerstein, Media Consortium blogger

On Monday afternoon, the Capitol Police in Madison, Wisconsin refused to enforce an order to clear the Capitol building of hundreds of peaceful protesters who have been occupying the site to protest Governor Scott Walker’s plan to eliminate the collective bargaining rights of public employees.

Amy Goodman of Democracy Now! interviews State Rep. Kelda Helen Roys (D), who spent Sunday night in the Capitol building with other protesters. Roys describes what happened at four o’clock on Monday afternoon when the government gave the order to clear the protesters from the building:

And after several hours of the same sorts of scenes that we’ve been seeing all week—singing, chanting, drumming, speechifying—the Capitol police captain, Chief Tubbs, made an announcement, and he said that the protesters that had remained in the building, they were being orderly and responsible and peaceful and there was no reason to eject them from the Capitol.

Police attempted to clear the building of protesters on Sunday night, but they relented when the protesters refused to leave and allowed them to stay another night. On Monday, the police decided not to eject protesters already inside, but no additional activists would be allowed in. The governor plans to deliver his budget address on Tuesday afternoon. Walker is expected to call for spending cuts that could exceed $1 billion dollars.

Gov. Walker has threatened mass public sector layoffs if the Democratic senators do not return from Illinois by March 1. However, the Uptake.com reports that one of the absent legislators, State Sen. Jon Erpenbach, claims Walker is not telling the truth. Erpenbach says the unions have already agreed to come up with the money the governor needs to balance the budget, and therefore, he has no need to lay anyone off to bridge the gap.

Wisconsin 101

Matthew Rothschild of The Progressive describes the epic scale of the Wisconsin protests:

This is the largest sustained rally for the rights of public sector workers that this country has seen in decades — perhaps ever.

The crowds at the state Capitol have swelled from 10,000-65,000 during the first week all the way up to 100,000 on Feb. 26. Hundreds of people occupied the Capitol building with a sit-in and sleep-in for days on end, and total strangers from around the world ordered pizzas for them.

In case you’re still wondering what all of this means, Andy Kroll, Nick Baumann, and Siddhartha Mahanta of Mother Jones have joined forces to bring you this “Wisconsin 101″ primer.

The Republicans in the Wisconsin House passed a bill that would take away collective bargaining rights for public sector unions, restrict their ability to collect dues, and force them to undergo yearly recertification votes. But the bill cannot become law until the state Senate also passes it. Currently, 14 Democratic state senators are hiding out in Illinois to deprive the Republican majority of the quorum they need to vote on the bill. However, as Kroll notes, if only one Democrat breaks faith and returns to Madison, the Republicans will be able to pass the bill.

Nationwide solidarity

Jamilah King of Colorlines.com brings us a photo essay on the solidarity rallies held around the country over the weekend in support of the Wisconsin protesters. From San Francisco to Salt Lake City to Atlanta to New York, people took to the streets in support of the right of workers to organize. Also at Colorlines.com, historian Michael Honey draws parallels between the situation in Wisconsin and Dr. Martin Luther King’s last crusade. Shortly before his assassination, King stood with the sanitation workers of Memphis to demand collective bargaining rights and the power to collect union dues.

George Warner of Campus Progress profiles some young activists who took to the streets of Washington, D.C. to express their solidarity with the Wisconsin protesters. About 1,500 people came out to a rally in support of the protesters on Saturday.

Anonymous strikes again

In a bizarre twist, a loosely organized coalition of anarchic hackers known as “Anonymous” attacked websites linked to Koch Industries on Sunday, Jessica Pieklo reports for Care2.com. The Koch brothers are among Gov. Walker’s most generous benefactors. The hackers launched a distributed denial of service attack on the website of the Koch-funded conservative group Americans for Prosperity.

In addition to generous campaign contributions, the Koch brothers gave $1 million to the Republican Governors Association, which in turn paid for millions of dollars worth of ads against Walker’s opponent in 2010. Walker is evidently very grateful to Koch. Last week, a writer for a Buffalo-based website got Walker on the phone by pretending to be David Koch.

Don’t look now, but…

Meanwhile, in Indiana, the state assembly reconvened on Monday to find most of the 40 Democratic members had decamped for Illinois. The legislators are apparently taking a page from the Wisconsin playbook. Indiana’s Republican governor is trying to pass legislation that would make permanent a ban on collective bargaining by public sector workers and the Democratic legislators are seeking to deny him the 2/3rds quorum required to vote on the bill.

This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

 

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