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Organizing Against Lincoln

[ 26 ] August 31, 2015 |

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It’s almost hard to believe Abraham Lincoln survived until 1865 given the hate he engendered among northern racists. While we can certainly argue that Lincoln was not that radical compared to Charles Sumner or Thaddeus Stevens, moving a white supremacist nation to eliminate its most dominant white supremacy institution through means of a war and mobilizing a general public who often did not believe in that cause until close to the end of the war was pretty radical governance. It’s hardly surprising that underground movements would try and develop to counter the threat they felt to an activist government they believed threatened their racial status and that was even going to make them fight for it. And while sleeper cells might not have been for everyone, the Ohio Democrats nominating an open traitor like Clement Vallandigham for governor in 1863 shows how powerful this hatred of Lincoln was during the war.

McDonald’s and Franchising

[ 99 ] August 31, 2015 |

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You may have some questions about just how McDonald’s runs its franchising operations and why the company is the focus of so much attention with the NLRB’s Browning decision from last week. Of course, franchising can mean a lot of different things with a number of varying arrangements. In the case of McDonald’s, the company seeks detailed control over the franchisee in ways that other fast food companies do not, arrangements that suggest an almost Don Blankenship-level of control over work that makes an argument it is not a joint employer highly dubious. Jeff Spross has more on this.

The funny wrinkle in McDonald’s case is that a lot of the company’s franchisees really don’t like the model. They have to pay the corporate mothership 4 to 5 percent of their revenue for a franchise fee, and then another 4 to 5 percent to go into an advertising fund. The franchises then have to pay another 12 percent to McDonald’s for rent. Meanwhile, the central company gives franchisees a slew of requirements in terms of remodeling, computer systems, and other expenses they must incur to stay in the franchise agreement.

By all accounts, McDonald’s has cracked down on its franchisees in recent years. It controls most of the prices on the menu, and between that and its hefty operating demands, it’s squeezing franchisees so that the way to make the business model successful is to pay the workers less. Dissatisfaction amongst McDonald’s franchise owners is reportedly at an all-time high, so they clearly feel they’re under fire.

But then you have to ask: Under fire compared to whom? The average American worker, or other small business owners pulling down $100,000-plus a year?

Another wrinkle, according to Kalnins, is that McDonald’s is genuinely an outlier in the aggressiveness with which it deals with its franchises. In other chains, franchisees can own hundreds of stores, and sometimes be public corporations unto themselves. But “McDonald’s really wants small owners,” Kalnins explained — somebody overseeing three, four, or five units. “Somebody who’s checking out what’s going on in those units every day.”

The upside for McDonald’s is franchisees who are “much more loyal and will do what you want them to, because of their smaller size.” The downside is a far more aggressive interference on the part of McDonald’s in terms of the running of the stores and its relationships with workers.

Another thing that makes McDonald’s an outlier is it’s one of the few chains that owns the property for every last one of its stores, and thus charges its franchisees the rent. Kalnins said he’s spoken with franchise consultants who figured that while the 12 percent of revenue that McDonald’s charges for rent is high compared to the standard 10 percent small businesses usually face from real estate owners, it’s not extraordinary. But “if you add the rent to it then certainly they’re paying more than for other chains. And that’s relatively unusual.”

Given all of this, how is McDonald’s not the direct employer of the workers? They are of course, even if they’ve offloaded the onerous parts of hiring onto the franchisee. And became McDonald’s corporate so controls all the details of work, this operates in some of the same ways that the apparel industry’s exploitative subcontracting system does–by making sure that the only way the franchisee is going to make any money is to squeeze workers as hard as possible, with a bottom baseline only a federal or state labor law that may or may not be stringently enforced on the ground. This is another reason why we need to push back against these sorts of labor arrangements through holding corporations legally accountable for the workers making their products regardless of whether they are directly employed, subcontracted, franchisees, temp workers, etc. These latter systems exist precisely for the kind of advantages McDonald’s has created here. Hopefully the NLRB will continue bringing this system back under control.

Browning Commentary

[ 10 ] August 31, 2015 |

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There was a lot of good commentary late last week to the NLRB decision in the Browning-Ferris case, ruling that joint employer status applied to this contractor for the purpose of unionization and other labor law, potentially repealing some of corporations’ favorite strategies for protecting themselves from legal accountability. Let me link to a couple. First, Catherine Fisk:

The most interesting implication, given the recent strikes in the fast food industry, is whether the decision means that corporate restaurants like McDonald’s are the joint employer with their franchisees. The Board has cases pending that will present this issue and it will decide them in due course. The test the Board articulated in Browning-Ferris is that two entities are joint employers “if they share or codetermine those matters governing the essential terms and conditions of employment” which includes “hiring, firing, discipline, supervision, and direction,” as well as “wages and hours,” “the number of workers to be supplied, controlling scheduling, seniority, and overtime, and assigning work and determining the manner and method of work performance.” And the Board said the codetermination of these matters need not be done “directly and immediately, and not in a limited or routine manner” but it is enough if the control is exerted in an “indirect” or “routine” way so long as the user employer “affects the means or manner of employees’ work and terms of employment, either directly or through an intermediary.”

What the dissent is anxious about is precisely what workers’ rights advocates have been talking about for decades. Should companies that effectively dictate working conditions by the price they are willing to pay suppliers (whether it is suppliers of labor, as in Browning-Ferris, or suppliers of goods, as in supply chain cases) be obligated to bargain with the employees who supply that labor or those goods? Should janitors or security guards in an office building or warehouse workers be able to pressure the building manager or the logistics company (as opposed to the labor contractor for which they work) for a pay raise or safety protections?

One issue the Browning Ferris case does not decide but the dissent talks about at some length is whether the common law right of control test adopted by the majority also has implications for a different issue, which is the difference between employees (who are workers that a hiring entity has the right to control) or independent contractors (workers that the hiring entity does not control). The majority said little about this, but the dissent lambastes the majority for adopting a version of the common law test that might narrow the definition of independent contractor, making more workers employees. If the dissent is right, then the years long effort of Federal Express to run a huge package delivery service without employing any drivers might fail, and so, too, might Uber’s argument that it’s become the country’s fastest-growing taxi service by simply being a technology company that employs no drivers.

Great! Republicans’ worst nightmares are precisely what I and so many other labor supporters hope happens. These follow-up NLRB cases are going to be incredibly important and I think the fears of the dissent point the way they are probably going to go. Of course, there is a legal appeal as well that conservatives will push, which rationally should allow the NLRB jurisdiction but given conservative judicial activism may well not. E. Tammy Kim interviews people on both sides of this issue that lay out the stakes.

“The Board’s tortured analysis will undoubtedly be met with skepticism and will be rejected by local franchise owners, legislators and, ultimately, the courts,” said Steve Caldeira, president and CEO of the International Franchise Association. “IFA and its allies are asking Congress to intervene to halt these out-of-control, unelected Washington bureaucrats to preserve the established joint employer standard relied upon by America’s 780,000 franchise businesses and the 8.5 million jobs they directly create.”

While groups like the IFA accused the NLRB of ignoring the economic reality of the franchise structure, the Fight for $15 fast-food movement applauded the Board’s recognition that large corporations exert control over individual stores and restaurants.

“McDonald’s is the boss — that’s true by any standard,” said Kendall Fells, organizing director of Fight for $15. “The company controls everything from the speed of the drive-thru to the way workers fold customers’ bags. It’s common sense that McDonald’s should be held accountable for the rights of workers at its franchised stores.”

Although the NLRB’s ruling only applies to labor law and not employment cases — minimum wage, overtime or discrimination — it could influence other venues. Several such cases brought by Fight for $15 workers are pending in federal court.

“The Board has been out of whack with federal and state laws with respect to employment,” said attorney Moshe Marvit, fellow at the liberal think tank the Century Foundation. “The decision is influenced by other agency decisions, and OSHA (the Occupational Safety and Health Administration), for example, will follow the Board’s lead.”

The potential for that influence is real and could be meaningful, albeit pretty reliant on the Democrats winning the election in 2016. Meanwhile, what are conservatives saying? It’s pretty comic!

For example, the NLRB’s new standard could force Silicon Valley startups to hire the receptionists and cleaners they currently get from staffing or property management companies. It will adversely impact the innovative sharing economy, where technology has drastically lowered transaction costs, enabling people to come together to share services in novel new business relationships. In the end, some jobs will be absorbed by companies’ corporate headquarters, to minimize unexpected liability; some jobs will be eliminated. The NLRB has set back the clock 40 years, to an era of corporate giants when few people had the option of being their own bosses while pursuing innovative employment arrangements.

Also great! Outside of the double speak that claims exploitative working relationships is freedom.

DuPont and Teflon, Revisited

[ 17 ] August 31, 2015 |

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A few weeks ago, I linked to a good in-depth discussion of how DuPont had poisoned the people of Parkersburg, West Virginia through the production of C8, the chemical making up the key component of Teflon. The Huffington Post now has a very long and in-depth piece on the same subject, which you should also read. I won’t go over the details again except to say that DuPont, like basically all chemical corporations, treat the environment, workers, and the surrounding communities with a complete lack of basic respect in its quest to maximize profit. But two points to pull out. First:

By the early 1970s, Congress was once again debating how to regulate the chemicals that now formed the fabric of American domestic life. Both houses drafted legislation that would empower the Environmental Protection Agency to study the health and environmental effects of chemicals and regulate their use. But the industry unleashed another lobbying blitz. Under the final version of the Toxic Substances Control Act of 1976, existing chemicals were again grandfathered in. Manufacturers did have to inform the EPA when they introduced new chemicals—but no testing was required. The resulting regulatory regime, which exists to this day, is remarkably laissez-faire. Only a handful of the 80,000-plus chemicals on the market have ever been tested for safety—meaning that we are all, in effect, guinea pigs in a vast, haphazard chemistry experiment.

This is a really key issue. Like fracking and so many other technological developments of industrial life, we have given corporations carte blanche to create profitable markets in chemicals without meaningful testing, and especially without meaningful public testing that would give people a right to know what chemicals are in their air, water, food, and workplaces. Only if disasters strike of the thalidomide level does real accountability to corporations ever take place. Meanwhile, more chemicals can be created, dumped, and forgotten about, all at continuing profit. Even here, with overwhelming evidence of how DuPont created birth defects, massive wildlife and livestock dieoffs, cancers in workers and local residents, etc., the company still have not faced real accountability. Instead it is using every known tactic of corporations to delay compensation and try to offload legal liability. This gets us to the second point.

Meanwhile, this past July, DuPont spun off its specialty chemicals division into a separate company called Chemours. The new enterprise will assume the liability for DuPont’s most polluted sites, including Washington Works—but it will only have one-quarter of DuPont’s revenue. Many people with cases pending against DuPont worry that it will use this arrangement to avoid paying damages or, at the very least, stall any resulting payouts. “I’m sure part of their theory is the longer they delay, the more people will die,” said Deitzler, the Parkersburg-based lawyer. “It’s already worked. Before we could even file cases, many of the people who’ve been affected passed on.”

Creating new companies that are underfunded in order to deal with liabilities is an old corporate trick. Dollars to donuts Chemours declares bankruptcy in the next decade that allows DuPont to escape from any meaningful compensation at all.

Meanwhile, DuPoint has moved on from C8. But to what?

Under the current regulatory system, DuPont is not required to ensure that these chemicals are free of the qualities that made C8 so toxic. While relatively little is known about these substances, most of them have very similar structures and properties to C8, and the limited information that is available reveals troubling effects. Also, while some of the replacement chemicals break down faster than C8 does, they need to be used in larger quantities to achieve the same results, a fact that has caused alarm in the scientific community. This May, 200 scientists—chemists, toxicologists, and epidemiologists among them—signed a statement urging governments to restrict the use of these chemicals because of the “risks of adverse effects on human health and the environment.”

Until that happens, these substances will continue to spread, unchecked. Not long ago, the Little Hocking water district commissioned a study to see whether any of the C8 replacements were contaminating the town’s aquifer. Researchers tested worms unearthed from Little Hocking’s well field, a scraggly meadow overlooking the vast expanse of storage tanks and smokestacks at the Washington Works plant. They found a number of C8’s chemical cousins, including C5, C6, C7, C9 and C10. Once again, local residents may have been unwittingly exposed to toxins whose ultimate effect on human health is unknown.

The weak regulatory system combines with the nation’s profit-first ideology and corporate malfeasance to ensure that nothing will change here. Maybe one of these chemicals will, 20 years from now, be found to also kill people. If the system is similar to today, another decade will pass before any kind of compensation is required and then DuPont will continue to find more ways out and local people will suffer.

Sentinels of Silence

[ 15 ] August 28, 2015 |

Why can’t Orson Welles be brought back from the dead to narrate documentaries?

Had to link instead of embed because of the film’s privacy settings, but it’s a cool documentary of sorts on indigenous Mexican ruins.

Workplace Violence

[ 47 ] August 28, 2015 |

The horrible killing of the Virginia TV crew has once again shown that a) gun violence is inherently political, b) that the National Rifle Association is a front organization for murderers, and c) that we need gun control, which of course won’t happen. But it’s also a reminder of how common violence at the workplace. Errol Lewis:

A more fruitful discussion worth having is about the scourge of workplace violence, which the killings of Parker and Ward certainly was. According to the National Institute for Occupational Safety and Health, a federal agency, while workplace violence has dropped in recent years, it is still startlingly frequent. Nearly a decade ago, according to the agency, 20 workers were murdered every week. A more recent report shows the tide of violence declining, but as of 2009, 521 people were killed on the job and 572,000 non-fatal violent crimes took place, including rape, robbery and assault.

That averages out to more than 10 lives lost every week. Many of the tales are grisly: As CNN pointed out last fall, a fired UPS employee in Alabama shot two former colleagues to death before killing himself; a laid-off worker in Oklahoma went to his old plant and beheaded the first person he saw; and a traffic controller in Illinois set fire to his workplace and slit his throat.

And all those happened in a single week.

But there’s more because a sadly not surprising amount of this workplace violence is directed at women, as was the case this week. Dan Keating:

Many people work at dangerous heights, or with deadly chemicals or crushing equipment. But, as the gruesome killing of reporter Alison Parker and cameraman Adam Ward reminded us Wednesday, murder happens surprisingly often on the job. Out of nearly 4,600 workplace deaths in 2013, 9 percent were caused by homicides, according to the census of workplace deaths by the Bureau of Labor Statistics.

It’s a pattern that disproportionately affects women. After car accidents, homicide is the most likely way for women to die at work, representing 21 percent of workplace deaths. Men, on the other hand, are more likely to die many other ways. Murders represent 8 percent of workplace deaths for men, preceded by car accidents, falls and contact with objects and equipment.

The murder threat for women is different. Both sexes die most often at the hands of robbers, and both also murdered at about the same rate by co-workers. But more than a third of women murdered at work are killed by boyfriends, spouses, exes or other relatives. For men, that category of killer is almost zero.

“When women are at work, their exes always know where to find them, don’t they?” said security expert Chris E. McGoey in a telephone interview Wednesday.

The 2015 AFL-CIO Death on the Job Report has more about these issues as well:

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Workplace violence is another way that the national epidemic of gun violence affects all of us and it gives organized labor an entry into pushing for rational gun policies. I don’t doubt of course that advocating for gun control would irritate a good number of union members for which gun identification is more meaningful than class identification, but cutting back on the opportunities for gun violence is the right thing for working Americans.

Reconstruction and the National Park Service

[ 25 ] August 28, 2015 |

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Ku Klux Klan member, Tennessee, 1868

This is a good piece summarizing the one area of U.S. history that the National Park Service has done a terrible job commemorating, which is, not surprisingly, Reconstruction. The NPS does a really commendable job of remembering the American past, especially given its increasingly limited resources spread out over increasing numbers of parks. But Reconstruction is a major gap. The first reason is obvious–that for so long the popular historical interpretation of the period was one most popularly told in Birth of a Nation. But this open white supremacy was always challenged by African-Americans and in recent decades the popular memory has shifted. Except among conservative white people, which still means memory of the period is extremely charged. The NPS is moving toward some new sites that would remember the brief, aborted attempt to create something like a racial democracy in the post-Civil War period. What has to happen now that did not happen in 2003 when the last time an effort to create a Reconstruction site took place is to not allow the Confederate heritage organizations to have a seat at the table. This is the equivalent of allowing Neo-Nazi organizations to have a role in deciding on official historical remembrance of the Holocaust.

I do believe we will see, at the very least, Obama simply name a Reconstruction-era National Monument before he leaves office. A congressional bill would be preferable because it would show that there is a broader understanding of what Reconstruction is really about but given the rise of radical white supremacist Republicanism in the last decade, this feels unlikely to me. Moreover, I am concerned that the NPS is still bringing representatives of the Sons of Confederate Veterans into meetings. Why? They should be excluded entirely. They are never going to agree and don’t have a legitimate viewpoint to begin with.

Scabbing in the New Gilded Age

[ 114 ] August 28, 2015 |

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Probably the most underreported story in American labor right now is what’s going on steel. There are more unionized steel jobs in the U.S. than you’d think and a lot of those union contracts are expiring on September 1. That means a lot of labor strife, with companies seeking to destroy their unions. One of the most egregious cases of union-busting right now is Allegheny Technologies Inc (ATI), which has locked out its workers in order to force enormous contract concessions for the workers to keep their jobs.*

ATI still wants to run. They just want to bring American labor down to Bangladeshi working levels. No, seriously. ATI is actually advertising on Craig’s List for scabs. What would the working conditions be like?

Must be able to lift up to 50 lbs. and work in a standing position for entire shift (12 hours/day) in a high heat/temperature manufacturing environment. Workweek is 84 hours/week.

Previous experience in a metal manufacturing or processing facility is required. All positions require working for unknown duration and are temporary. THIS IS A LABOR DISPUTE SITUATION – EMPLOYEES WILL BE TRANSPORTED ACROSS A PICKET LINE.

They are paying a lot of money for this, which would last precisely as long as the lockout goes on. But 84 hour work weeks? That’s 12 hours a day, 7 days a week, of hard hard work. And given this is Pittsburgh with its still powerful union culture, I’d guess that if they do get workers, and they probably will given the wages and poor choices for working-class people, they will be coming from outside the region by and large.

There are 2000 USW members out of work right now thanks to a company that wants to repeal decades of union victories. There is going to be a large rally in Pittsburgh to support the workers on September 1 at noon. There will rallies the same day for locked out steelworkers in Illinois, Massachusetts, and Connecticut. I plan on being in Pittsburgh for this. Hope you can support these workers if you are near one of the four locations.

*Let’s face it–the reason this is so underreported is that while the United Steelworkers is a really good union, their communications strategy with the general public is significantly behind a lot of other large internationals. Get with the social media USW! I should be knowing about this stuff as it is happening. I found out about it on Tuesday and only because I was with labor people in Pittsburgh. Even in the labor media, there’s been very little coverage.

This Day in Labor History: August 28, 1963

[ 15 ] August 28, 2015 |

On August 28, 1963, the March on Washington for Jobs and Freedom took place in Washington, DC. This famous event is of course most often remembered for Martin Luther King’s “I Have a Dream” speech, or more specifically the 3 lines of it that conservatives have decided justify their own positions. But even among liberals and civil rights activists what is often forgotten or downplayed in the memory of this event is the central role economic issues played in it. Most of the economic agenda of the 1960s civil rights movement in fact is barely remembered. That’s a huge problem because not only were African-Americans fighting for the opportunity for economic advancement as well as to end segregation and for the vote but also because it presents an incomplete history which takes away part of the reason this movement so challenged American life.

First, it’s worth noting that the original idea for the March on Washington came from a union. In 1941, Brotherhood of Sleeping Car Porters president A. Philip Randolph called for a march on Washington to protest hiring discrimination in defense plants as the nation was gearing up for World War II. Like most issues concerning minorities, FDR didn’t really care but he didn’t want the bad publicity so he caved and ordered the end of hiring discrimination on government defense contracts. This opened up a lot of jobs to African-Americans during World War II and helped build the black middle class that would do much to push forward the freedom struggle after the war.

Randolph was still active in the movement in 1963, although more as a senior figure than a major player. But he, Bayard Rustin, and others revived the idea of the march to push John F. Kennedy to do something on civil rights, which he had been frustratingly reluctant to do. Rustin was hired to organize the event. Rustin had been a communist in the past and that greatly worried anti-communists like the NAACP’s Roy Wilkins (who did not even want to make a statement about the death of W.E.B. DuBois at the March because he hated him for his communism but who did when he realized Randolph would do it and it would be favorable), but he had played a role in the planning for the 1941 march and he had Randolph’s trust. Of course Strom Thurmond used Rustin’s role to paint the entire march as a communist front and J. Edgar Hoover rejected a report showing no significant communist infiltration into the civil rights movement, but this was just standard fare from the white supremacist American power structure.

The NAACP and most importantly Martin Luther King’s Southern Christian Leadership Conference agreed to the idea while the Student Nonviolent Coordinating Committee were happy to use the opportunity to take on Kennedy publicly and directly for his inaction. The civil rights movement was a diverse movement with a lot of different groups and aims. That meant some careful alliance building was needed. But the different groups did come up with specific goals to fight for which included not only the passage of civil rights legislation, but a $2 minimum wage ($15.60 today), federal employment law banning discrimination in public or private hiring, and the expansion of the Fair Labor Standards Act to include agricultural workers, domestic workers, and the rest of the workers excluded when the law passed in 1938.

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During the March itself, Bayard Rustin read all these demands on live television, which may be the only time a list of labor demands has received that kind of coverage. A. Philip Randolph led off the speeches by saying, “We are the advanced guard of a massive moral revolution for jobs and freedom” and that “the sanctity of private property takes second place to the sanctity of a human personality” in arguing for housing reform.

Playing a key role in the March on Washington was United Auto Workers president Walter Reuther. Organized labor often has a bad reputation on civil rights during this era, mostly for a good reason. Reuther is an important exception. This doesn’t mean he could instantly turn UAW locals into beacons of racial harmony. Turns out that racial solidarity has a lot more power with a lot more people than class solidarity and UAW officials found that out the hard way when they tried to push civil rights on the shop floor. But that’s an issue for another entry in this series. Reuther provided key labor support for the event. The AFL-CIO paid for a lot of the infrastructure of making this event happen, including the buses to get people to Washington and the UAW paid for the sound system that would blast King’s speech into history. This all happened over the opposition of George Meany, who did not care much about civil rights before this and who opposed an official federation endorsement of the march. But the AFL-CIO did officially support the Kennedy civil rights bill. It is said that Meany however was so moved by Randolph’s speech at the March that he created the A. Philip Randolph Institute to promote African-Americans in the labor movement.

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Reuther stated in his speech, “And the job question is crucial because we will not solve education or housing or public accommodations as long as millions of American Negroes are treated as second-class economic citizens and denied jobs.” Reuther knew that he had a friend in King because even as a lot of internationals and locals resisted the civil rights movement, King consistently supported the progressive causes of labor and frequently spoke to labor audiences. And of course as King went on, he became more and more focused on economic justice as a centerpiece of the larger freedom struggle, to the point of dying while supporting the Memphis sanitation workers strike in 1968.

While it’s difficult to measure the precise impact of the march on the political process so soon before Kennedy’s death, we can pretty clearly say it led to the inclusion of the Fair Employment Practices clause into what became the Civil Rights Act of 1964.

Also please notice how little a role Martin Luther King has played in this post. The March on Washington was not all about MLK, although that in no ways diminishes his importance to the movement or the “I Have a Dream” speech. But it was a lot more than one man giving one speech.

This is the 156th post in this series. Previous posts are archived here.

How to Save New Orleans

[ 33 ] August 27, 2015 |

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This is kind of disturbing. A decade after Hurricane Katrina, three separate engineering teams have concluded that the only way to save New Orleans from future hurricane damage by building up the Mississippi Delta around the city is to let the end of the Delta die. And maybe that’s true. The declining sediment load thanks to agriculture combining with the engineering choices already made on the river plus rising sea levels probably does mean that hard choices are going to have to be made. Of course even if scientists, engineers, and urban planners had consensus that this was the best answer, it doesn’t mean the politics would allow it to happen, with the status quo having an endless amount of money behind it.

The Union Edge

[ 29 ] August 27, 2015 |

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Above: Pittsburgh, 1940

I was on The Union Edge on Tuesday, the great labor radio program out of Pittsburgh, talking about Out of Sight and other labor-related matters. You can listen to it here.

My Pittsburgh visit was also highlighted by not only meeting wjts, but not getting into fisticuffs with him over condiment choices. I was proud of myself.

Joint Employers

[ 28 ] August 27, 2015 |

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In a major victory against the obscuring of employers in order to disempower workers, the National Labor Relations Board has ruled that corporations who use contractors and franchises are the joint employers of those workers. This is an enormously important decision because employers like the fast food industry (the case is actually about a waste management company but fast food is the most famous user of this method) argue that if workers were to join unions, they would have to negotiate with each individual restaurant instead of with McDonald’s. The big companies control almost everything about the work, but used these obscuring methods as a way to shield themselves from liability. The NLRB just stripped a lot of that way and undermined some of the reasons for subcontracting and franchising.

In the case, the N.L.R.B. held that a company called Browning-Ferris Industries of California was a joint employer of workers hired by a contractor to help staff the company’s recycling center. But the ruling could apply well beyond companies that rely on contractors and staffing agencies, extending to companies with large numbers of franchisees.

“The decision today could be one of the more significant by the N.L.R.B. in the last 35 years,” said Marshall Babson, a lawyer who helped write the brief for the U.S. Chamber of Commerce in the case and who was a Democratic appointee to the labor board in Ronald Reagan’s presidency. “ Depending on how the board applies its new ‘indirect test,’ it will likely ensnare an ever-widening circle of employers and bargaining relationships.”

Beyond Browning-Ferris, the ruling may have a significant immediate effect on a case the labor board is litigating against McDonald’s and several of its franchisees. In that case, the N.L.R.B.’s general counsel, who essentially acts as a prosecutor, asserts that the company is a joint employer along with a number of franchisees, making it potentially liable for numerous reported violations of workers’ rights, like retaliating against those who have tried to organize unions.

Thursday’s N.L.R.B. ruling, by enshrining a broader joint-employer definition into doctrine, makes it more likely to apply in the McDonald’s case as well, though experts point out that joint employer designations are typically very dependent on the circumstances of each case.

Business representatives said the ruling could make it much harder to operate franchises in the future, undermining a popular path for many entrepreneurs.

“This will clearly jeopardize small employers and the future viability of the franchise model,” said Steve Caldeira, president of the International Franchise Association, an industry group. “If I’m an existing and/or aspiring franchisee, why would I want to expand my business and/or get into franchising if I don’t have the ability to run the day-to-day operations of the business?”

The industry pretending that the franchisee controls the business is hilarious given how much control the company holds over the entire operation.

Some credit goes to the Teamsters here who brought the case before the NLRB and this demonstrates how important it could be to unionization efforts:

The Browning Ferris case grew out of an organizing effort by the Teamsters. The union sought to have the waste management company named as a joint employer for workers employed by the staffing firm Leadpoint Business Services, a subcontractor for Browning Ferris. If Browning Ferris were deemed a joint employer, it would have to join Leadpoint in bargaining with the Teamsters. Such a determination could also make it easier for the Teamsters to organize workers at other staffing agencies that do work for Browning Ferris.

A regional director for the NLRB ruled that Browning Ferris did not exert enough control over Leadpoint workers to be considered a joint employer under current standards, but the Teamsters appealed that ruling to the federal board. Thursday’s ruling will change those standards for future cases.

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