DOL Gift to Big Labor Bosses Challenged in Court

Tired of not seeing where his forced union dues go and disgusted with the the U.S. Department of Labor’s decision to help union bosses conceal their extravagant benefit packages, UFCW member Chris Mosquera has filed suit challenging the Secretary Solis’ rescission of union financial disclosure.  From the Gazette’s Erin Cunningham:

In the complaint, filed Monday in U.S. District Court for the District of Columbia, Chris Mosquera of Rockville seeks to have an action by Secretary of Labor Hilda Solis overturned.

At issue is her decision to repeal a rule that would have increased the amount of information unions had to disclose publicly about their finances, said Patrick Semmens, the director of legal information for the National Right to Work Legal Defense Foundation, which is representing Mosquera.

The nonprofit foundation opposes forced unionization and provides free legal aid for employees.

The National Right To Work Legal Defense News Release (5/24/2011):

Union Member Seeks to Block Obama Labor Department’s Efforts to Roll Back Union Disclosure Rules

Department guts disclosure rule that has exposed numerous corrupt union boss schemes and let rank-and-file members know how dues are spent

Washington, DC (May 23, 2011) – With free legal aid from the National Right to Work Legal Defense Foundation, a Maryland county government employee is asking a federal court to stop the Obama Administration from allowing union bosses to conceal lavish and corrupt union expenditures from workers.

Chris Mosquera, a member of a Municipal County Government Employee Local of the United Food and Commercial Worker (UFCW) union, filed the lawsuit against Secretary of Labor Hilda Solis in the U.S. District Court for the District of Columbia for rescinding a union boss disclosure rule which would make it less difficult for workers to hold union officials accountable.

Unions covered by the Labor Management Reporting and Disclosure Act (LMRDA) with total annual receipts of $250,000 or more are currently required to submit annual financial statements to the U.S. Department of Labor. LM-2 forms are the public disclosure documents for these larger unions and are available online on the U.S. Department of Labor’s (DOL) website.

These forms have helped workers and citizen activists expose many unscrupulous union boss schemes, including lavish benefits to high-ranking union officials and loyalists, superfluous spending on union boss transportation (including private jets), and shady political spending (such as the Service Employees International Union bosses’ links to the disgraced political organization ACORN).

Mosquera seeks to intervene for the millions of workers who are forced by federal mandate to accept union boss “representation” and pay union dues or fees to a union in order to get or keep their jobs.

The lawsuit alleges that Solis exceeded her power as Secretary of Labor by repealing a January 2009 LM-2 Final Rule because the rule put a “burden” on union officials to report their expenditures to the public. However, under federal law, Solis cannot use “burden” as a justification for rescission of a rule. Solis further overstepped her legal authority by singlehandedly creating a new rule that allows union bosses to more easily evade and circumvent the LMRDA. (more…)

Matt Mayer of the Buckeye Institute debunks the long-term economic growth without Right To Work freedom is sustainable. Mayer uses a Columbus Dispatch reporter Joe Hatlett column that featured Former Michigan Gov. Jennifer Granholm to expose the fact that corporate welfare and reduced regulations ignore the “proverbial elephant in the room weighing down” compulsory union states like Indiana, Ohio, Illinois,, and Michigan.

From Matt Mayer’s post:

“With Michigan bleeding jobs and tax revenues, Granholm said she followed the corporate playbook in her attempt to close a huge state budget deficit and make Michigan more competitive. ‘In listening to the business community, I cut takes [sic] 99 times, and I ended shrinking government more than any state in the nation. In my two terms, I cut more by far than any state in the nation. And yet, we still have the highest unemployment rate.

There was no correlation.’ Granholm conceded that streamlining business regulations and lowering taxes — Kasich’s economic recovery mantra — are helpful, but they aren’t a panacea…[l]abor costs, help with start-up costs and proximity to markets are other factors.”

Hallett and Governor Granholm fail to mention why streamlining regulations and lowering taxes aren’t helping the northern states (located within 50 percent of the U.S. population and with low start-up costs) compete against the southern and western states. Instead, Hallett ignores the obvious answer and pleads for an end to corporate pork (with which we enthusiastically agree).

The reason Michigan and Ohio can’t compete is that the southern and western states already have fewer regulations and lower taxes, so “catching up” with those states still leaves the proverbial elephant in the room weighing down the northern states. Plus, those states are also pushing for lower taxes and fewer regulations, so the northern states are perpetually behind them. The elephant, which Governor Granholm does hint at, is labor costs, or, more specifically, unionized labor costs (see: General Motors and the United Auto Workers).

As I noted in Six Principles for Fixing Ohio, “Of course, tax and regulatory burdens also impact a state’s economy. Although many of the forced unionization states have heavy tax burdens and many of the worker freedom states have light tax burdens, some heavily taxed worker freedom states (Idaho, Nevada, and Utah) had the strongest sustained job growth from 1990 to today.

Similarly, a few moderately taxed forced unionization states still had weak job growth (Indiana, Illinois, and Missouri). The combination of both a heavy tax burden and forced unionization is deadly when it comes to job growth, as 11 of the 15 worst performing states are ranked in the top 20 for high tax burdens.” If Ohio and the other states from Missouri to Maine want to truly compete with Texas, Georgia, and South Carolina, then those states need to enact laws that protect the rights of workers not to join a labor union to get a job. (more…)

Government employee union woes are being felt from California to Maryland.  George W. Liebmann, executive director of the Calvert Institute for Policy Research Inc., lists several problems in Maryland in his Baltimore Sun op-ed:

Marylanders need instruction in how entrenched the state’s teachers’ unions are:

1. Eleven counties, including all the more populous ones, allow unions to collect “agency fees” from nonmembers, generating huge war chests. While in theory such fees are not supposed to be used for political purposes, a famous [NRTW] lawsuit in Washington state revealed that nearly 80 percent of “agency fees” are in fact so used.

2. The State Board of Education has only qualified authority over teacher certification. A special board, eight of whose 24 members are named by unions and six of whom are from teachers’ colleges, can only be over-ridden by a three-fourths vote of the State Board.

3. Under a law signed by Gov. Martin O’Malley last year, another special board, two of whose five members are named by unions, has the last word in resolving impasses in school labor negotiations.

4. Local union contracts impose maximums on the length of the school year, limitations originally derived from the needs of agricultural societies

5. Maryland’s charter school law is one of the few that binds charter school teachers to union contracts, and it provides few checks against refusal of applications by self-protective county boards.  Experimentation with “virtual schools” and distance learning is limited by a law binding employees to union contracts.

8. Contracts severely limit teacher attendance at PTA meetings, in some counties to two hours per year; and at post-school meetings, frequently to one hour a month. Evaluations and observations are severely limited; only a handful of teachers are ever found to be incompetent.

9. In all but three counties, third-party arbitrators, rather than the local board of education, are given the last word in grievance proceedings. There is a three-to-five step grievance procedure, making discipline of tenured teachers all but impossible. Out of a tenured force of more than 5,600, no more than two Baltimore City teachers were fired for cause, per year, between 1984 and 1990.

(more…)

The liberal media in the Northeast is dominated by The New York Times, The Boston Globe and the Washington Post.  In a period of two weeks, all three have published articles critical of big labor’s power and influence over the political process.  The latest is a Washington Post editorial bemoaning the power and influence of the teacher’s unions in Montgomery, Maryland.  Fact is the article could be written in most counties in the United States but it’s progress, none the less.  If they really wanted reform, they would endorse a National Right to Work law.

In Montgomery County, teachers union has a grip on politics

Wednesday, July 7, 2010

IN MONTGOMERY COUNTY, candidates for public office who have received the teachers union’s endorsement ahead of this fall’s Democratic primaries must feel as if they’ve won the lottery. The union, with the help of highly unusual cash “contributions” from some of its anointed candidates, sends out glossy, targeted mailings on their behalf. It places advertisements and yard signs. And it distributes thousands of its “Apple Ballots,” listing endorsed candidates, to voters at polling stations on Election Day.

Now the teachers union, known as the Montgomery County Education Association, is going a step further: It’s organizing a poll and inviting its favorite candidates to append their own questions. If the trend continues, union-backed office-seekers won’t have to bother campaigning at all, or even leaving the house. The MCEA will take care of everything. (more…)

DC Police Union Escort SEIU Protestors to Protest

In an outrageous display of intimidation, SEIU activists violated private property and stormed the home of Bank of America executive Greg Baer. When Rockville, MD police arrived they discovered two DC police cars — police cars that  escorted the law breakers to the protest. (Note: please read the Washington Examiner article for updated denials).

This is an another example of why the Police-Fire Union Monopoly Bargaining Bill is so dangerous to our security.

Union Pay to Play Scheme

The website Truth About PLAs has uncovered a letter from an AFL-CIO official showing the link between labor contributions and official actions by government officials promoting union-only hiring policies.  The letter states:  

“Organized Labor and the Democratic Party have by tradition supported each other over the last 72 years.  In the past several months, however, this has not been the case in Prince George’s County.  Labor has come under attack by Prince George’s County Democratic Party leadership in the form of disparaging statements made by the Chair and Vice Chair of the County Democratic Central Committee.  This has disappointed and angered the members of the labor community.  Also disappointing is the lack of public support, since October of last year, from other elected officials in the County. Many of you have been endorsed and been given money and support by labor unions.  You reach out to Labor when you needed support and labor faithfully provided that support.  Unfortunately, it appears that we cannot expect that support to be reciprocal.”

Meet the Bosses

When the Washington Post calls union officials influence toxic, you know it must be bad:

In Montgomery County, the teachers union and its toxic influence

MOST CANDIDATES for local office in Montgomery County covet the endorsement of the county teachers union more than any other, and all of them know the drill: Appear at union events, fill out the union questionnaire, submit to the union interview. The union, representing 11,000 teachers, helpfully provides a road map to candidates seeking its blessing, including 11 criteria spelled out in painstaking detail online. Just one thing is missing from this handy guide: Candidates who receive the union’s stamp of approval are also then expected to pay.

As far as we know, this arrangement is unique; in elections elsewhere, unions and other special interests contribute to candidates, not vice versa. But such is the overweening power of the teachers union in Montgomery that the usual rules are turned upside down. And it’s no coincidence that the union’s toxic influence in local elections is matched by its success in squeezing unaffordable concessions from the county in contract negotiations — at taxpayers’ expense.

In the latest elections for the Montgomery County Council, in 2006, most candidates on the union-approved (and trademarked) “Apple Ballot” coughed up the maximum contribution allowed by state law, $6,000, to a PAC run by the Montgomery County Education Association, as the teachers union is known. Union-backed candidates for the Board of Education also paid handsomely. Supposedly, these funds covered the cost of the union’s mailings to constituents and other activities on behalf of its anointed candidates — although there is no real accounting on a campaign-by-campaign basis. In theory, these contributions are voluntary. In fact, several sources told us that the MCEA’s chief political strategist, Jon Gerson, made it clear that he expected candidates, once endorsed, to pay what they “owed” for the union’s campaign on their behalf. One candidate, asked to explain the decision to pay, answered concisely: “Fear.

This distorts and perverts the political process. A case in point is Nancy Floreen, the current County Council president, who suggested, during a budget crunch in 2003, that the union make some concessions on compensation. That probably cost her the MCEA endorsement in the 2006 primaries, in which she barely managed to retain her council seat. This year, facing reelection and even more dire budgetary circumstances, Ms. Floreen has been quiet as a mouse on the subject of union concessions, even though negotiations on a new contract for teachers are underway.

And no wonder. In addition to its multiple and targeted mailings in the last elections, the MCEA planted yard signs, bought advertising on the radio and at Metro stations and deployed teachers to every key county polling station, where they handed voters sample “Apple Ballots” of endorsed candidates bearing the words “Teacher Recommended.” Of the 47 “Apple Ballot” candidates in 2006, 42 won their races for county and state legislative offices.

Some MCEA-backed candidates, and the union, portray this as a win-win arrangement whereby teachers and the candidates who support them help one another out. As Mr. Gerson put it to us: “Everybody would like to do this, and others have said they’d like to try, but what you have to have is a product that someone says they’d like to invest in.”

Teachers are a bedrock of any community, and they deserve good salaries and benefits for doing a tough and important job. The problem in Montgomery is not its teachers. Rather, it is that the MCEA, the largest union in the county, is in effect hiring its own bosses — members of the school board, who vote on the teachers’ contract, and County Council members, who approve the overall county budget — and is getting paid for it in the bargain. This twisted system has fueled skyrocketing payroll costs — including a 23 percent pay raise for a typical teacher over the past three years, plus extraordinary health and retirement benefits — even as private-sector wages have stagnated.

Most elected officials, too fearful of the union to object, rubber-stamp the teachers’ contract and the county budget, thereby repaying the union for its backing. Other big public employees unions in the county, jealous at the terms extracted by the MCEA, use the teachers’ contract as a benchmark for their own negotiations, creating a self-perpetuating spiral of unaffordable concessions by the county. Little wonder that the county is facing staggering deficits — $600 million on a budget of $4.3 billion in the fiscal year starting this summer. And it’s no surprise either that despite the county’s severe budget problems, the MCEA is still demanding raises in the current contract negotiations. As the teachers union gears up to make endorsements in this fall’s elections, county taxpayers should clutch their wallets tightly.