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Unions, buoyed by election results, are taking a stand

By Alana Semuels, Los Angeles Times –

They’re fed up, and they’re not going to take it anymore.

That’s the case for thousands of employees across the country who are striking and walking out of jobs rather than accept changes to their pay and benefits. It might be a shot in the arm for a labor movement that had been left for dead but saw big gains in the November election as voters elected pro-labor candidates.

The number of union-related work stoppages involving more than 1,000 workers, which reached an all-time low of just five in 2009, rose to 13 this year as of October. And unions aren’t done yet.

Nurses are striking this week at hospitals operated by Sutter Health in California; workers voted against concessions at Hostess Brands Inc., forcing the company’s hand; pilots at American Airlines are wreaking havoc on the airline’s schedule as it tries to cut pension and other benefits.

“There’s a lot of agitating going on,” said Julius Getman, a labor expert at the University of Texas. “People are unhappy. They feel that they’re not being well-treated. There is a swelling of annoyance at the rich.”

This week, labor faces a pivotal test of just how strong this movement is, with a group called Our Walmart asking associates to strike at stores across the country during the retailer’s busiest days of the year.

The group says it is protesting Wal-Mart Stores Inc.’s retaliation against workers who seek to unionize. It wants to get the corporation to sit down with the group and listen to workers’ complaints.

“There comes a time when you have to stand up and you have to fix what is broke, and Wal-Mart is broken,” said Evelyn Cruz, 41, who works at a Wal-Mart in Pico Rivera, Calif., and walked off the job there Tuesday.

Cruz says that the company has cut staff so that her department has half the number of people it once did, and that Wal-Mart gives poor shifts or fewer hours to the people who complain. She was one of a handful of workers who participated in the first strike in the company’s history in October.

Wal-Mart, for its part, says that it does not expect the protests to disrupt business, and that most of its employees are happy at their jobs.

“The fact is, our pay and benefits plans are as good or better than our retail competitors, including those that are unionized,” Wal-Mart spokeswoman Kory Lundberg said in an email.

The Bentonville, Ark., retail titan last week filed an unfair labor practice complaint with the National Labor Relations Board, seeking an injunction to stop the protests.

That’s unlikely to make a difference with the protests. Our Walmart filed a complaint in response Tuesday, accusing Wal-Mart of trying to deter workers from participating in the strikes.

Labor actions usually occur in clusters, and big turnouts on Friday could prompt others to take action, Getman said.

“If there really is turmoil at Wal-Mart on Friday, it will set in motion a lot of other protests,” Getman said. “There will be a sense of, ‘Well, they did it; why shouldn’t we?’ ”

As the economy improves and workers feel more secure in their jobs, they’re often more willing to take action, said Nelson Lichtenstein, director of the Center for the Study of Work, Labor and Democracy at the University of California-Santa Barbara.

“Insofar as there’s an uptick in employment, workers can think, ‘If I get fired, I can maybe find another job,’ ” he said.

Even if few of the strikes achieve their desired results, victories at the polls in November all but guaranteed labor will have some influence at the White House. Unions helped re-elect President Barack Obama and were also influential in the elections of Sens. Tammy Baldwin, D-Wis., and Elizabeth Warren, D-Mass.

AFL-CIO President Rich Trumka said earlier this month that he expected card check legislation, which makes it easier for companies’ workforces to unionize, to be introduced in Congress in the next four years.

Although labor experts consider that unlikely, they say Obama could take up the issue of raising the minimum wage, or could issue an order requiring companies to rely less heavily on part-time workers.

The fact that they have the influence to do so, even in an era of declining union membership, indicates that things may finally be turning around for the labor movement, said Gary Chaison, an industrial relations professor at Clark University.

“The unions are taking a higher profile. They’ve become energized after the elections,” he said. “The labor movement is starting to feel revived, but it knows it’s not quite there yet.”

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Here is a take on why Hostess decided to take bankruptcy. This is from the Wall Street Journal on November 18th:

“The snack giant endured $52 million in workers’ comp claims in 2011…. Hostess’s 372 collective-bargaining agreements required it to maintain 80 different health and benefit plans, 40 pension plans and mandated a $31 million increase in wages and health care and other benefits in 2012.

Union work rules usually required cake and bread products to be delivered to a single retail location using two separate trucks. Drivers weren’t allowed to load their own vehicles, and the workers who loaded bread weren’t allowed to load cake. On most delivery routes, another “pull up” employee moved products from back rooms to shelves.

This year management negotiated concessions from some of the unions, including the Teamsters, but the bakers rejected a last and best offer in September. Then the courts gave Hostess unilateral authority to modify collective bargaining contracts. prompting the strike. So now it will liquidate, instead of attempting to emerge from Chapter 11 intact.

The 18,500 layoffs are equal to about 11% of the new net jobs the entire U.S. economy created in October. The unions are blaming private equity, or Bain Capital, or capitalism, but the election is over. And so is Hostess.

–Wall Street Journal. November 17-18, page A16

Here is an article from Forbes about Hostess and unions in general: http://www.forbes.com/sites/realspin/2012/11/28/more-hostess-liquidation-to-come-with-president-obamas-micro-unions/

did the atricle mention all the millions that went for bonuses and raises to upper management? why is it that the guys already making millions want the workers to take cuts but give themselves hefty raises and bonuses? It is time for the working class to demand some of the huge profits corperate America is making on their sweat and blood.

The problems with hostess was greed. Pure greed on ALL sides. The management wanted large sums of money for doing little skilled work and the unions wanted great paying jobs for as many people as they could. Greed, it’s what is wrecking America.

Were the executives the owners of the company? Bonuses are often how the owners take the bulk of their wages/profits at year-end. If they don’t take them that way, they pay double taxes.

Katie defends financial vultures. Don’t worry Katie, those executives will be juuuuust fine.

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