Unionizing Burgerville: workers of the world unite…then quit.

Time passes. Things change.

That’s certainly been the case at Burgerville, where workers at the company’s restaurant at 3504 SE 92nd Ave. in Portland voted 18-4 in April 2018 to form a union.

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Over the next 12 months, employees at four more Burgerville sites followed suit:

May 13, 2018: 19119 SE McLoughlin Blvd. site – 17 yes, 5 no

Dec. 11, 2018: 1122 SE Hawthorne Blvd. site –  13 yes; 9 no

April 3, 2019: 8218 NE Glisan St. site – 15 yes, 9 no

April 4-5, 2019: 1135 NE Martin Luther King Jr Blvd. site – 14 yes, 7 no

Adding it all up, 111 Burgerville employees at a total of five locations have voted on whether to form a union.

Burgerville says it hasn’t kept track of which specific employees participated in the union votes, so it can’t quantify how many of the 111 voters are still employed by the company. It has determined, however, that of the 142 employees who were working in the five unionized locations during their respective votes, only 94 of them, or 66%, are still employed at Burgerville.

Furthermore, the lead organizers of the unionizing effort at three of the five restaurants no longer work at Burgerville. Two resigned their positions less than one month following their locations’ votes and a third organizer just resigned.

The fast-food industry is currently grappling with record employee turnover. According to MIT Technology Review, the turnover rate in the fast-food industry is 150%. In other words, the typical fast food restaurant is seeing its entire workforce, plus half of its new hires, replaced in 12 months.

Burgerville is doing better, perhaps because of its expansive benefits, including health insurance, vacation pay and financial wellness training. Still, the annual turnover rate across its 42 restaurants in 2018 was 83% (up from 71% in 2017), according to the company.

What all this means is:

  • Three of the five union organizers are no longer working at Burgerville.
  • A significant share of all the Burgerville employees who voted in the five union elections since April 2018 are likely not still working at the company.
  • It is highly likely that few of the 142 employees who were working at the five unionized locations during their respective votes will still be employed at Burgerville 12 months from now.
  • Few of the employees at the five Burgerville locations 12 months from now will have participated in the original votes to unionize.

Why, then, should the employees at the five locations one year from now be forced to be members of a union?

Unfortunately, future employees at the five Burgerville  restaurants probably won’t be given an opportunity to vote on whether to be represented by a union and, if so, which one.

One option to address this situation could be automatic representation elections whenever employee turnover by a bargaining unit over time exceeds a certain percentage. A bill introduced in Congress in 2017 (H.R. 2763 – Employee Rights Act) proposed 50 percent be the trigger.

Another possible solution, suggested by both Samuel Estreicher, a Professor of Law at New York University School of Law, and Michael Oswalt, an Associate Professor of Law at the Northern Illinois University College of Law, is regularly scheduled union representation elections the same way we regularly schedule political elections.

Estreicher, who called his proposal “easy in, easy out,” suggested that every two or three years the employees in a unit, after an initial minimal required showing of interest, would have an opportunity to vote in a secret ballot whether they wish to continue the union’s representation, select another organization, or have no union representation at all.

Oswalt argued that regularly scheduled union representation elections would be better than the simple continuation of the status quo.

“…workplace culture would slowly shift, creating an atmosphere where workers would feel internal pressure to, at the very least, think about the ramifications of selecting or not selecting a bargaining agent,” Oswalt wrote.

That would  be a good thing for Burgerville workers.

 

 

 

 

 

 

 

 

 

 

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Union Members Can Stop Subsidizing Liberal Candidates and Causes

 

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A question to conservative Oregon union members (I know you’re out there): Why are you contributing to union political funds when most of the money ends up supporting liberal Democratic candidates?

About 18% of the electorate across the country was from union households in the Nov. 8, 2016 presidential election. Donald Trump captured 43% of those union-household voters.

In Oregon, 14.8 percent of the wage and salary workforce belonged to a union in 2015. It’s not clear how they voted, but it’s likely, based upon national patterns, that a decent share voted Republican.

Still, Oregon’s unions overwhelming endorsed Democrats. For example, all but two of the AFL-CIO’s 2016 Legislative endorsements in Oregon were for Democrats (one was an independent, one a Republican), as were all the statewide candidate endorsements.

Similarly, in the 2016 election, political contributions from Oregon’s unions went overwhelmingly to Democrats. For example, SEIU’s PAC, Citizen Action for Political Education (CAPE), spent $2,001,758.89 on the 2016 election. Of that, $706,750.00 went to Defend Oregon (the group pushing Measure 97), $205,000 to the Committee to Elect Brad Avakian, $180,000 to the Kate Brown Committee, and $37,380 to The Real Mike Nearman Committee (created to defeat Republican Mike Nearman).

So why don’t more union members who disagree with their union’s political stances decline to contribute to their union’s PAC and opt out of supporting the union’s political activities. It’s not that hard to do. All a union member has to do is become an “agency fee payer”, sometimes also called a “Fair Share Payer” or “Non-member.”

Oregon allows public employees who are part of a collective bargaining unit to refuse membership in the union that represents that unit. But because the union still has to negotiate on their behalf, these nonmembers must contribute to cover costs which cover collective bargaining, contract administration and grievance adjustment, but not costs associated with political activities.

This worker right was established in 2012 when the U.S. Supreme Court decided that while employees can be required to pay dues for the direct benefits they get from the union, they can’t be forced to give money to unions for political activities.

According to Steve Buckstein,  Founder and Senior Policy Analyst at Cascade Policy Institute, even before the 2012 Court decision, a telephone company employee named Harry Beck spent over two decades fighting for the right to opt out of paying the political portion of his union dues to the Communications Workers of America. In 1988, the U.S. Supreme Court ruled in his favor in Beck v. CWA and created what are now known as Beck rights. Harry is now retired and lives in Oregon. You can watch him tell his story here: https://www.youtube.com/watch?v=a29L3ouJ6tw.

Political spending by unions can be substantial…and influential.

In a Sept. 2015 report to individuals who pay Fair Share fees, the liberal-leaning Oregon Education Association (OEA) said 22.9 percent of its total expenses were nonchargeable for Fair Share fee payers and the liberal-leaning National Education Association (NEA) said a whopping 62.71 percent of its total expenses were nonchargeable for Fair Share fee payers.

This means that if annual OEA dues were $600, they could have been reduced to $462.60 and if annual NEA dues were $185, they could have been reduced to $68.99.

Think of it. Workers, rather than union bosses, deciding for themselves how, or whether, they want to spend their money on political causes.

 

Hear that sucking sound? That’s Oregon tax Initiative Petition 28

Democrats and their union allies want to suck more money out of Oregon businesses than we thought.

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Oregon’s Legislative Revenue Office predicted today (May 23, 2016) that Initiative Petition 28, if approved in November, would generate $6.1 billion in new revenue by the 2017-19 biennium. That’s almost $1 billion more than the $5.3 billion initially predicted.

Talk about greed!

The Revenue Office’s report also estimated that 38,220 private sector jobs would be lost by 2022 if the initiative passed. Meanwhile, in an odd twist, the public sector would add 17,700 jobs.

Talk about an absurd outcome!

And Gov. Kate Brown’s thoughtful response?  “I greatly appreciate the analysis provided by the Legislative Revenue Office, which helps inform our understanding of the impacts of IP-28,” Brown said. “As I have said previously, the problem I remain focused on is how to improve our graduation rate and fund essential services while sustaining economic growth and protecting Oregon jobs. I will begin discussions with my legislative colleagues about a way forward that, should the measure pass, would safeguard new revenue for education while sustaining economic growth and protecting Oregon jobs.”

Whew! Makes you wonder if the governor is being paid by the word.

Initiative Petition 28 is being promoted by A Better Oregon, a campaign organization operating under the umbrella of Portland-based Our Oregon, a coalition of unions and progressive groups.

The measure would raise the corporate minimum tax on Oregon sales of more than $25 million a year from the current minimum of $50,000 to $30,001 plus 2.5 percent of the excess over $25 million. The tax would be based solely on sales, not profit.

Corporate taxes during the 2017-2019 biennium under the current system are projected to reach about $1.1 billion.

In other words, the passage of Initiative petition 28 would increase corporate tax collections per biennium by almost 600 percent in one fell swoop.

Rep. Mitch Greenlick (D-Portland), when endorsing the measure, said it would eliminate much of the constant need to choose between funding critical budget concerns each legislative session. “If that passes, we’ll have a lot of money to pay for stuff,” Greenlick said.

Otherwise, Greenlick said, most of the additional revenue in the economic forecast for the 2017-2019 budget would go to cover increased PERS liabilities and the state’s increased share of Medicaid funding, leaving little additional revenue for new stuff.

“This measure will make sure that large and out-of-state corporations do their part to fund the schools and services that will make Oregon thrive,” Our Oregon says.

As long ago as I can remember advocates for higher taxes in Oregon have been making “out-of-state corporations” the bogeyman, the malignant beast that’s doing Oregonians wrong and needs to pay.

But as attractive a target as these corporations are, they’re not fools. They will find a way to avoid paying the taxes or they’ll pass on the added taxes to Oregon consumers.

Then we’d all pay.

The liberal coalition behind Initiative petition 28, recalling their success in a tax increase battle in 2010, may be figuring they have a sure thing again with another measure targeting big business, but hopefully Oregonians in their wisdom will see this proposal is a reach too far.

 

 

Our Oregon: shooting Oregon in the foot – Dems and unions want more money to spend on more “stuff”

 

Tax big business. “Yeah.. that’s the ticket! Yeah, you betcha!,” SNL’s Tommy Flanagan would say.

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A Better Oregon, a campaign organization operating under the umbrella of Portland-based Our Oregon, a coalition of unions and progressive groups, agrees.

A Better Oregon is promoting Initiative Petition 28 for the November 2016 ballot. The measure would raise the corporate minimum tax on Oregon sales of more than $25 million a year from the current minimum of $50,000 to $30,001 plus 2.5 percent of the excess over $25 million. The tax would be based solely on sales, not profit.

The Legislative Revenue Office estimates the corporate tax measure would raise $5.3 billion during the 2017-2019 biennium. Corporate taxes during that biennium under the current system are projected to reach about $1.1 billion.

In other words, the measure would increase corporate tax collections per biennium by a whopping 400 percent in one fell swoop.

Rep. Mitch Greenlick (D-Portland), when endorsing the measure, said it would eliminate much of the constant need to choose between funding critical budget concerns each legislative session. “If that passes, we’ll have a lot of money to pay for stuff,” Greenlick said.

Otherwise, Greenlick said, most of the additional revenue in the economic forecast for the 2017-2019 budget would go to cover increased PERS liabilities and the state’s increased share of Medicaid funding, leaving little additional revenue for new stuff.

But not to worry, says Ben Unger, executive director of Our Oregon. The extra money won’t come out of your pocket. It will come mostly from large out-of-state corporations.

About 1,000 corporations doing business in Oregon, mostly multi-state corporations, would be affected by the higher taxes.

“This measure will make sure that large and out-of-state corporations do their part to fund the schools and services that will make Oregon thrive,” Our Oregon says on its website.

As long ago as I can remember advocates for higher taxes in Oregon have been making “out-of-state corporations” the bogeyman, the malignant beast that’s doing Oregonians wrong and needs to pay.

But as attractive a target as these corporations are, they’re not fools. They will find a way to avoid paying the taxes or they’ll pass on the added taxes to Oregon consumers as a stealth sales tax.

Moving a company’s headquarters to another state with a more congenial tax environment, as GE is doing with its recently announced shift from Connecticut to Massachusetts, won’t solve the problem, but there are always run-arounds.

Maybe some businesses will change their ownership form to get sales in Oregon under the $25 million trigger. Others may institute some special, higher regional pricing.

Some creative companies may become benefit corporations. Our Oregon thought it was being clever and supportive of the “good guys” when it inserted a provision in its initiative to exclude benefit companies under ORS 60.754 from the higher taxes. But this opened a loophole ripe for exploitation.

The liberal coalition behind Initiative petition 28, recalling their success in a tax increase battle in 2010, may be figuring they have a sure thing again with another measure targeting big business, but hopefully Oregonians in their wisdom will see this  proposal is a reach too far.

 

 

The fatuous fight for $15

mcdonalds

Hold the burgers, hold the fries! MAKE OUR WAGES SUPER SIZE!!! ‪#fightfor15

 

New York’s Gov. Andrew Cuomo announced earlier this month that he would set a $15 minimum wage for all state workers on his own and without legislative action.

Cuomo’s move will give raises to about 10,000 state workers, adding $20.3 million annually to state spending by the time the increase is fully phased in.

What the heck. No skin off his nose. The state doesn’t have to make a profit. Take it out of taxpayers’ pockets.

That seems to be the attitude of a lot of folks these days. Wages have been stagnant for years for most people and inequality is the topic de jour. Let’s give a whole bunch of people a raise.

But whatever people say to pollsters about their support for higher minimum wages, that doesn’t necessarily translate into a willingness to pay the higher prices for goods and services that often result.

Furthermore, a sweeping across-the-board $15 an hour mandate that might be bearable for a business in Portland also might be devastating for a small business in Astoria, Echo or Pendleton.

The Economic Policy Institute, a left-leaning policy organization with ties to the organized labor movement, says, “All workers deserve a wage sufficient to support themselves and their family.”

The problem is that the minimum wage was never intended to be enough to support a family and that even a $15 minimum wage would still be a long way from achieving that goal.

In Oregon, for example, a family of four needs to earn about $64,000 for a reasonably comfortable living. A $15 an hour wage in a full-time 40-hr week would translate into an annual income of just $31,200.

It’s not even clear that raising the minimum hourly wage to $15 would be a clear victory for all the poor. It would certainly raise the wages of many workers, but it would also likely lead to the elimination of many jobs traditionally open to unskilled minimum-wage earners. In addition, most of the benefits of an increase to $15 an hour would not go to people actually living in poverty.

In fact, about 50 percent of current minimum-wage workers are under 25, and about 25 percent are teenagers. The unemployment rates of both groups are already higher than the 5 percent national unemployment rate.

People without a job are much more likely to be living in poverty than those who are employed. Furthermore, many of those earning less than $15 an hour today are not the primary breadwinners in families. That being the case, a better way to address poverty would be to work harder to position the unemployed for the workforce and to target income supplements on low-income families through such programs as the Earned Income Tax Credit.

When I see a plaintive story about Suzie, a fast food worker who protests that she’s been working at the counter for 4 years and hasn’t seen any substantial raises, my first thought isn’t, “Well, double Suzie’s pay, youInstead, I think, “How can you justify a big jump in pay to someone who has been performing the same low-skill job for 4 years, with no increase in her expertise and no increase in her productivity that enhances the company’s bottom line?” That may sound brutal, but it’s how things work at every single successful company. It can’t be otherwise.

Supporters of the $15 an hour minimum wage also err when they say it won’t cost much. A $15 an hour minimum wage would not happen in isolation. There would be a cascading effect on other workers, thus a greater cost impact on the employer.

If you raise the hourly pay of the McDonald’s crew from $9.25 to $15 an hour, a 62 percent increase, can you leave the shift manager’s pay at $10.20 an hour, and so on up the ladder?

At some point a franchise owner will say, “enough!” McDonalds has tested automated self-service kiosks that have been shown to reduce customer wait times and generate higher sales than ordering from workers at the counter asking, “Do you want fries with that?” That may be the future if we go down the $15 road?

 

 

 

 

 

 

 

Merkley’s money: pick your poison

I got a friendly personal note from Senator Jeff Merkley the other day. Well, it was addressed to me and had his signature, so I think it was personal.

Anyway, he told me that if I’m “fed up with special interests always getting their way in Washington” he needs my help because “the special interests that are used to calling the shots are hell-bent on defeating me in 2014.” And in a kind of ironic twist, he said he needs lots of money because every supporter he adds today will be “a rejection of the big money politics that’s created a government by and for the powerful.”

This is the same man who has raised nearly $8 million from the special interests that he embraces, particularly unions, lawyers and law firms, and real estate interests. In the DC game, it’s more a matter of picking your poison than staying pure.

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During 2009 -2014, principal contributors to Merkley’s campaign have been:

 

Industry    Total raised       From Individuals From PACS
lawyers/law firms $337,313 $259,615 $77,698
Leadership PACs $166,500 0 $166,500
Real estate interests $146,868 $74,358 $72,510
Building trade unions $117,000 0 $117,000

 

The lawyer/law firm contributors include the American Association for Justice, also known as the Association of Trial Lawyers of America ($26,000) and the Boston-based law firm, Thornton & Naumes ($25,000). Thornton & Naumes is a heavy hitter in the contributions game, having contributed $326,250 so far during the 2014 election cycle. That made it the top contributor to 23 members of Congress, all but one a Democrat.

The trial lawyers have been long-time big-time money machine for the Democratic Party. Already losing tort-reform battles in states run by Republican governors and legislatures, and threatened by the GOP-led House, the trial lawyers are deathly afraid of having to deal with a GOP-led Senate, too, so they’re manning the barricades and handing out cash..

Another special interest heavily invested in Merkley is the real estate industry, blamed by some for exacerbating the housing collapse by promoting easy-credit policies.

Then there are the unions. Now there’s a special interest.   Unions making big contributions to Merkley in the 2014 election cycle include:

  • International Brotherhood of Electrical Workers, $30,000
  • Communications Workers of America, $25,000
  • National Electrical Contractors Assn., $25,000
  • International Association of Fire Fighters, $23,500
  • Operating Engineers Union, $20,000
  • Teamsters Union, $20,000
  • Painters & Allied Trades Union, $18,000
  • International Longshoremen’s Association, $18,000
  • International Association of State/County/Municipal Employees, $16,500.

In 2013, the union membership rate–the percent of wage and salary workers who were members of unions–was 11.3 percent, according to the federal Bureau of Labor Statistics. The number of wage and salary workers belonging to unions, was 14.5 million.

The strongest union representation in 2013 was with public-sector workers, which had a union membership rate (35.3 percent) more than five times higher than that of private-sector workers (6.7 percent). This reflects a fairly steady decline in union membership over the years. Thirty years ago, for example, the union membership rate was 20.1 percent, and there were 17.7 million union workers.

Unions in the United States are waging an aggressive effort to maintain their membership and to support union-friendly government policies. And Merkley’s on board.

 

 

 

 

 

 

 

 

Merkley’s money: what a difference a term makes

HandsOut

Things are different now.

When Democrat Jeff Merkley first ran for the U.S. Senate in 2008, he raised a total of $6,512,231.

Now that he’s a Senator, he’s already reported raising $6,286,013 for his reelection and the 2014 race, in theory, hasn’t even begun. The Republicans haven’t even chosen who will run against him.

That means Merkley’s total haul is likely to go much higher as individuals, special interests and Democratic Party funds ramp up their donations to keep him in office.

The two parties are in a no-holds-barred struggle for control of the Senate, where pollsters and analysts think the Republicans have a shot at taking control with a good showing in the November 2014 elections. Merkley isn’t often mentioned as being in a high-risk race, but then former Senator Gordon Smith wasn’t thought to be vulnerable early on either.

With 5 years as a U.S. Senator now behind him, the sources of Merkley’s donations are shifting. A smaller share is coming from individual contributors and twice as much from political action committees (PACs). Also, more unions are stepping up as big contributors, his big donors have less of an Oregon focus and Merkley isn’t having to dig into his own pocket.

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According to the Center for Responsive Politics, contributions to Merkley’s campaign committee for his 2008 campaign and for his 2014 campaign as of Dec. 31, 2013 break down as follows:

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For his 2008 Senate race, Merkley’s largest 10 contributors (individuals and PACs) to his campaign committee were:

JStreetPAC $78,180
Council for a Livable World $55,889
State of Oregon employees $35,050
Oregon Health & Science University $33,964
Moveon.org $26,731
Stoel, Rives et al $23,323
League of Conservation Voters $21,500
Intel Corporation $17,920
Newmark Knight Frank $17,300
Intl. Brotherhood of Electrical Workers $17,200

The largest contributor to his 2008 campaign, Washington, D.C-based JStreetPAC, makes contributions to candidates who support a two-state solution for Israel and Palestine and robust American military aid to Israel. “I am and will continue to be a staunch supporter of the special relationship between the U.S. and Israel,” Merkley said during his 2008 campaign.“I will always seek to ensure its strength and foster its growth.”

The second largest contributor to his 2008 campaign, Council for a Livable World, is a Washington, D.C.-based non-profit advocacy organization dedicated to reducing the danger of nuclear weapons. Merkley subsequently voted in 2010 for a new Strategic Arms Reduction Treaty (START) with Russia and in February 2014, Merkley and Senator Edward J. Markey (D-Mass.) introduced legislation that would cut $100 billion over the next decade from the U.S. nuclear weapons budget.

The bill, S. 2070, would shut down all U.S. missile defense activities, reduce from 12 to eight the number of SSBN(X) ballistic-missile submarines that are set to replace the retiring Ohio-class fleet and limit to eight the number of Ohio-class submarines that can currently be fielded. The bill has been referred to the Senate Committee on Armed Services where its languishing.

The largest 10 contributors (individuals and PACs) to Merkley’s campaign committee for his 2014 race as of the end of 2013 are significantly different, with much less of an Oregon focus:

Votesane PAC $31,250
Thornton & Naumes $25,000
Intel Corporation $22,050
Honeywell Intl. $20,000
Operating Engineers Union $20,000
Intl. Association of Firefighters $18,500
Blue Cross/Blue Shield $17,100
League of Conservation Voters $15,314
American Crystal Sugar $15,000
Communications Workers of America $15,000

Votesane PAC, a non-partisan channel for political donations, has funneled $1.6 million to candidates in the 2014 election cycle, with almost all of it going to Democrats.

The only union showing up in Merkley’s list of top 10 contributors for his 2008 race was the International Brotherhood of Electrical Workers at $17,200. Three unions show up as his biggest contributors for the 2014 race so far with a total of $53,500.

Also making their debut as major Merkley contributors are individuals from Thornton & Naumes, a Boston, Mass. law firm with class action expertise that has represented people claiming they were victims of asbestos and toxic exposure, defective products, financial fraud, and personal injury accidents.. Law firms and lawyers have been the top contributors to Merkley’s 2014 campaign as of Dec. 31, 2013, donating a total of $296,363.

This only reveals, of course, donations up the end of 2013. Expect a lot of shifts as the campaign progresses.

Merkley has already spent $3,045,241, or almost half, of the funds he’s raised since 2008. Recently, the largest single amount has gone to Mandate Media,a Portland-based internet strategy,services,and advertising firm specializing in progressive political candidates and advocacy organizations. Mandate is also associated with BlueOregon, a widely distributed progressive e-newsletter.

The top 5 recipients of the campaign’s recent expenditures were:

Mandate Media $200,485
CHS Mailing $141,305
Kauffman Group $125,163
Linemark Printing $ 71,639
Benenson Strategy Group $ 47,000

It’s important to recognize that much of the money now being spent on campaigns is so-called independent expenditures, spending by groups and individuals who claim they are not coordinating their activities with a candidate’s campaign committee.

In Merkley’s 2008 race, for example, according to FindTheBest, the following outside groups spent about $675,000 in support of his candidacy:

Committee Amount

Service Employees International
Union Committee on Political Education
(SEIU Cope) $430,238
League of Conservation Voters Inc. $145,317
Democratic Senatorial Committee $ 47,746
League of Conservation Voters
Action Fund $ 40,862
Moveon.org Political Action $ 7,026

It’s likely that similarly large amounts of independent expenditures will occur in the 2014 race.

Data sources: The Center for Responsive Politics (http://www.opensecrets.org), a non-profit, non-partisan research group based in Washington, D.C.; FindTheBest (www.findthebest.com; http://bit.ly/1nYKKSA),a network of for-profit websites connected to help consumers and businesses make informed decisions.

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