President's Column - Shadow Government: The Real Cost Of Doing Business

Consevatatives complain about the size of government, how it has become bloated and intrusive. They pontificate, moralize and rant about how many government bureaucrats spend countless billions of dollars on useless government programs that impose needless burdens on the American public. Of course the American public of which they are referring is business, usually big business. These same defenders of freedom have no problem with government interfering in people’s personal lives such as not banning abortion or same sex marriage.

The government programs they don’t like are the Social programs, such as Medicare, Social Security, and any benefits for the poor or middle class citizens. Tax breaks for the rich and corporations is good, benefits for the lower classes is bad and budget busting. These smaller government gurus would have you believe that having federal employees doing the work is a tax burden but having private industry, despite the exorbitant costs, doing the work stimulates growth and bolsters the economy. But the myth of cost saving by contracting out is a subject for another time; this commentary is about the real size of the federal “government “and why they don’t want you to know it.

The gurus of smaller government and less intrusion in the workplace have attained Mecca in this Administration; contractors have taken over the work of the federal government in epic proportions. Contractors are running the majority of programs in the Defense Industry; this is in addition to those who make the equipment and armament for the military. I previously reported that 48,000 private soldiers working for 181 military firms are deployed in Iraq alone. Plus thousands of civilians provide the food and laundry and other services for our fighting troops in those skirmishes in the Middle East.

But that just barely scrapes the top of the scab, there are presently 1,872,000 federal civil servants (that’s your everyday government bureaucrat) and there are 7,634,000 contract jobs and additional 2,892,000 grant jobs. That totals 10,526,000 non-federal employees as opposed to 1,872,000 feds. The fact is that there are five contractor employees for every one federal employee. This is an increase of 2,498,000of non- federal employee jobs since 2002. Then the numbers were 5,168000 contract positions and 2,860, 000 grant positions.

The statistics and information is derived from the research conducted by Paul Light, a New York University professor and principal investigator of the Organization Performance Initiative, who defines "shadow government" as “"private industry contractors working on behalf of the federal government." He projects that the number of contractors in the shadow government will climb to 10 to 12 million within 10 years. He states that his calculations are only rough estimates of government size because “contractor and grantees do not keep count of their employees.”

It is virtually impossible to obtain an accurate number from the federal government, even though one would think they are necessary for budget purposes each year. This Administration hides the true figures because; as in previous administrations they want to project a leaner more efficient government. But those in smaller government camp do know and are silent because they want to retain the right to rail against “big government” and government intrusion.

We simple civil servants will have to endure these slings and arrows because not many are on our side. It has been that way since the first bureaucrat was issued a quill pen and black ink, the red ink can later, But take heart, fellow feds , you can be like the Winking Parrott and say with pride, “YOU KNOW!”

President's Column - Wal-Mart Always a Bad Deal, Always!

Wal-Mart may be the world’s largest employers; certainly it’s the largest in the United States. Wal-Mart reports there are 1.8 million workers worldwide with 1.3 million in the United States at 6,500 stores in 15 countries. Its tentacles of influence are felt at every level of government in the U. S. and all of the 14 countries. Wal-Mart negotiates at all levels of government; contributes to all political parties and engages in public service campaigns to elicit support in obtaining zoning waivers and tax breaks for its operations.

Any discussion about Wal-Mart business practices and employment record engenders strong emotions and hard feelings. Any announcement of a new Wal-Mart or a Sam’s Club brings out the protesters. These protesters range from unions, small business owners and public-spirited citizens. Emotions are strong and heartfelt; the unions protesting the poor wages and lack of benefits; the small businesses owners fear they will be driven out of existence by the low prices; and the citizens because Wal-Mart and similar stores create urban sprawl and harm small towns. This has occurred everywhere Wal-Mart has opened a store. Local businesses that became suppliers of Wal-Mart have also not fared well either, many have gone bankrupt because of Wal-Mart’s increasing demand for lower and lower costs.

Wal-Mart is neither a good employer nor a good citizen. The poor wages with little or no benefits force the employees seek public assistance and this becomes a drain on the taxpayers of that city or state. During the new employee orientation they are given instructions on how to file for partial unemployment checks and other public assistance due to the lack of benefits or healthcare. In some states a large percentage of Wal-Mart employees are collecting partial unemployment and are on Public Assistance or medical assistance in the local hospitals. Wal-Mart’ website claims that the average salary for its employees is $10.15 and some limited benefits. But this is usually the aggregate salaries of all employees and then averaged out.

In virtually every town that Wal-Mart has established a store, Super Store or Sam’s Club small business are driven out by the competition and even those businesses who do get to sell to WAL MART suffered because of the hard nose buying techniques and the continuous driving down the price of product that will be paid. It amounts to price fixing and a Monopoly, business is conducted on Wal-Mart’s terms, simply take it or leave it. Barry C. Lynn wrote in a recent article in HARPERS that four of Wal-Mart’s top 10 suppliers have been forced into bankruptcy because of these practices.

So the saga of Wal-Mart has become a contrast of good and evil and poses the question, “Can we afford the downside of dealing with Wal-Mart?” The only good being the low prices that helps the low income customers, fight inflation, and have caused Wal-Mart to grow and provided over one million jobs. The bad being the low wages with lousy benefits, forcing out the mom and pop stores and destroying the downtown areas. Not to mention that this company and its policies have a negative impact on overseas suppliers, who are paying slave wages with poor working conditions, no benefits and the possible utilization of child labor.

Wal-Mart is rapidly becoming one of the most sued corporations. Recently, Wal-Mart was found guilty in the Pennsylvania courts for forcing employees to work through rest breaks and off the clock. This lawsuit will cost Wal-Mart $62 million in damages to 187,000 hourly current and former employees. Lead plaintiff Dolores Hummel, who worked at a Sam’s Club in Reading PA from 1992-2002 charged in her lawsuit that she had to work through her breaks and quitting time to meet work demands in the bakery. She said she worked eight to 12 hours of unpaid hours a month.

Wal-Mart is facing a slew of similar suites around the country. The company settled a Colorado case for $50 million and is appealing a $172 million award handed down last year by a California jury.

“One of Wal-Mart’s undisclosed secrets for its profitability is its creation and implementation of a system that encourages off-the- clock work for its hourly employees”, Hummel said in her suit which was filed in 2002.

So in my humble opinion, it is all works out as more bad than good. And the slogan should be “WAL-MAT Always a Bad Deal, Always.”

President's Column - MCBUSHISM 2006

Americans haven’t this afraid to speak out since the 1950s when the “Red Scare” was in vogue and McCarthyism ran amok. For those of you not around in those dark days, Senator Joe McCarthy from Wisconsin and others of his ilk, saw communists and fellow travelers behind every bush and around every corner. Politicians, intellectuals, movie stars, members of the military and a lot of federal employees were under constant scrutiny for their activities and private conversations. Any who dared question either the motive or method became an immediate suspect. It was an era of looking over your shoulder, whispering in small groups and being careful with whom you were seen. Friends, neighbors and co-workers were encouraged to report any suspicious conversations or actions. Those who were questioned named others and just being questioned was equivalent to being guilty. The infamous Black List was created and woe to anyone who made that list. Careers and lives were ruined without evidence or trial .

And in the words of the Immortal Bard, Yogi Berra, “It’s déjà vu over again.” There is that same atmosphere of name calling and questioning of loyalty and patriotism in the post September 11 times. The Bush Administration tends to operate in secrecy and is quick to harangue or challenge anyone who questions either their motives or policies. To question is to be critical, to be critical is to be disloyal and being disloyal is tantamount to being unpatriotic. A good American, patriotic and true to flag and country must just buy off on how the war of terrorism is conducted, no matter how it destroys the freedoms that we are trying to protect.; must agree that the “black market operations” that cause high profits and excessive waste are good for the country; and must agree that to criticize provides “aid and comfort” to the terrorists.

This atmosphere of silence and blind obedience is seeping into the federal government. Agencies are warning employees not to be critical of how the agency is conducting business and to maintain the image of the federal government. There is a fear among federal employees that any criticism, which might just be the normal “water cooler bitching,” could result in the loss of the job and depending on the type of criticism even a worse fate. The Supreme Court has recently ruled that Whistle Blowers have no First Amendment Rights.

Federal employees complaining about their job is the American way, time tested and true. I am sure that the first employees in the George Washington Administration complained about not having enough quill pens and ink and too much work. Feds have always groused about the working conditions, bad bosses and the political appointees who came in with an agenda but little knowledge of how the work should be accomplished. It seems silly and counterproductive to be worrying about how the agency is perceived instead of what is accomplished, but these
days , the Bush appointees seem to be more interested in maintaining discipline than accomplishing the mission.

I keep expecting to see the old Second World War Posters, “LOOSE LIPS SINK SHIPS” etc. and I wonder when we will be asked to sign the “Loyalty Test“ forms swearing that we are good Americans and loyal federal workers. Maybe an award system will be developed for reporting disloyal co-workers, which could be more lucrative than the awards system in place now for doing the work. The American public has been asked to turn in any one they suspect of being a Terrorist or fellow traveler and what’s good for Middle American is good for all of us.

Maybe this type of Americanism comes around every 50 years or so, just to make us appreciate the freedoms we enjoy and to be sorely tested to fight for them. Now seems the time to speak out and up, to say that we want to keep our freedoms. American citizens, federal employees included need to live free under a strong viable strong constitution. To give up liberties for a little safety renders us undeserving of both. As Edward Abbey once said, “A PATRIOT MUST BE READY TO PROTECT HIS COUNTRY AGAINST HIS GOVERNMENT”

Tribute to Marty Berger, Labor Leader

June 19, 2006

On Sunday, June 16, 2006, a light went out in the House of Labor. At 76, Martin “Marty” Berger lost his valiant fight against cancer. He fought a good fight against bad odds, but Marty was a fighter all his life and always battled the odds. He worked as an organizer for the International Ladies Garment Workers (ILGWU) and the United Needle International Trade Employees (UNITE/HERE) for most of his life and then after his “retirement” on behalf of his beloved Pennsylvania Association of Retired Persons (PARA).

Marty was a kind, gentle man who fought fiercely for the union. He may have been slight of build, but was one of the toughest men I ever met. Marty would aggressively argue for the rights of workers and retirees. He didn’t loose many arguments and never gave up. There is a Sicilian proverb that best describes him, “Forte e Gentile,” which means “strong and gentle.”

His life is the history of the Labor Movement, and his work a testimony to courage and devotion to the cause. Marty had many causes, but they all encompassed his belief in the dignity of man and his love of the union. Whether he was organizing in the South in the early days or fighting for an issue for Retired Americans the last few years, he never gave up or gave in.

Marty organized thousands of workers in his long career and because of him they achieved better living standards, higher pay, and dignity and respect on the job. He spent the last few years working for the rights of retired union members and all seniors to live out their golden years with dignity and security. Through his leadership, PARA represented 250,000 senior activist and union retirees in Pennsylvania. Through his leadership, PARA has grown to include 145 affiliated organizations. PARA is the state affiliate of the Alliance for Retired Americans, a national grassroots organization representing 3 million retirees. Marty will always be the heart of PARA.

We will miss him dearly and think fondly of him for the rest of our days. There may never be a monument built for him or building named after him, but we celebrate his life every time we walk one more picket line, sign up one more union member; lobby in the State House or the halls of Congress for workers and seniors rights, or work at the polls to elect labor-friendly candidates. We will continue the work he did all of his life, organizing workers and demanding dignity for all retirees.

We are all better for knowing this bright light of the labor movement. We all became taller by standing on his shoulders. He made us just a little bit better by being our friend and our mentor. His light will shine in our hearts.

As Winston Churchill put it, “We make a living by what we get, but we make a life by what we give.” Marty Berger made a life!

He is survived by his wife Helen, a son and 3 stepchildren. Donations can be sent in memory of Marty to his favorite charity: Jewish Family and Children Services, 133 Coulter Avenue, Ardmore, PA 19003.

Speech at Secretary’s 2006 Awards Ceremony - Philadelphia

Honorable Deputy Secretary Law, Honored guests, Awards Honorees and my fellow Department of Labor employees. It is our annual gathering to honor those of us who have achieved above and beyond, and it is my annual duty to honor them and all of you who do the Department’s business. You, who work hard to accomplish the Department’s mission with devotion, diligence and dedication. It has always been difficult to accomplish that mission but these days it’s nearly impossible due to a shortage of boots on the ground. But yet the impossible is what you do everyday. You get the job done! You get the job done!

It is my honor to let you know that your service does not go unnoticed or unappreciated. While the powers to be might not acknowledge you, the working men and women of America know what you do and appreciate it. While they don’t know you name they are well aware of how they benefit by what you do. You are the dedicated federal workers who enforce the 80 plus Department of Labor laws and training programs each and everyday.

You protect their pensions and wages; enforce the safety laws that protects the workers in the factories and mines; provide the equal opportunity and fairness in the workplace; train the new employees and retrain the older ones; try the cases in courts; assure that all the programs operate fairly as Congress mandated them to be accomplished and make sure that there are free and fair union elections, and many of you provide the administrative and support services that makes it all work. The American workers know what you do and appreciate it. You get the job done! You get the job done!

I have often pondered on the why you think it’s important to accomplish the mission of the Department until a member of mine who, as she was retiring, sent me this story, which I have adopted it as the Mantra for Local 644. I relate this to you as the rationale of why you strive so hard to do such a great in spite of the almost overwhelming odds and the apparent lack of appreciation.

A man was walking along the beach at the South Jersey Shore one day, and he spied another man walking towards him, who stopped every few steps, bent down picked up an object and threw it into the ocean.
When he got closer, the second man inquired.
"What are you doing?"
"As you can see, it's low tide and the star fish that washed ashore are stranded and will die, I'm just throwing them back to the sea."
"Surely you can see that there are hundreds of starfish on this beach, and hundreds of beaches on this shore, so there are literally thousands of starfish you will not be able to save. It’s a daunting task and you are not making any difference at all."
The first man smiled, bent down and picked up a starfish and threw and said quietly, "Made a difference to that one!"

That’s what you do everyday, make a difference if only for one of America’s workers. You know your mission, you do it well and they appreciate it. You get the job done! You get the job done!

I wish that I could tell you that we will be hiring more people, finally having the number of people we really need to do the work, but you know better. We’ve had to do more with less for many years now and I ‘m afraid it’s going to get much worse. We are besieged with competitive outsourcing. You know what competitive outsourcing is, that’s the wonderful program where we replace a federal employee with a contract employee, who is paid little more than minimum wage with no benefits that does not create a job but merely changes the name on the unemployment check.

This program does little for the local economy; the contractor, usually from out of town, is the only one who makes good money and it winds up costing the government more money. But the good news is that given a fair level field we will win most competitions. Because you are here do the efficient and excellent work that you it will demonstrate you can do it better and accomplish the Department’s business, that work will remain in house. You get the job done! You get the job done!

In the past two years, we have won 14 out 15 competitions and I am sure we will win the one ongoing now. We will win because of the good work of our staffs which will demonstrate the efficiency and cost effectives of DOL employees. You get the job done! You get the job!

Contracting out is not an effective process and does not result in cost savings. It was enacted so that the government would not be doing the business of the private sector not to replace the mission of the government with the private sector. For instance the government should not be building build airplanes. It was never meant to take over the enforcement of government laws and regulations. It is ineffective and in efficient and costs the American taxpayers millions of unnecessary dollars. It didn’t work during the Carter Administration; the Reagan and Bush I administrations, didn’t work in the Clinton Administration and doesn’t work now. We have lost jobs, hired contract employees and kept on trucking.

Though downsized, outsourced and overworked, DOL is the only federal agency that achieved green in all of the Presidential Management Initiatives, the only federal agency to get to green and still accomplish the basic mission of the Department - the Only Federal agency that can make that claim. We are one of the smallest federal agencies but our impact and effect touches more lives than any other federal agency. You, through hard work and diligence accomplished everything that asked of you, achieved every initiative and worked on behalf of the American worker. You are the best. You get the job done! You get the job done!

So never let those dour devotees of dread, darkness, despair and doom get you down? You’ve been downsized; demoralized; discouraged and disrespected but you responded by being eager, enthusiastic; efficient and have exceeded. You’ve been outsourced; obstructed; offended and overused, but you prepared, perspired, prospered and prevailed. You get the job done! You get the job done!

You’ve been bedeviled, beset, belittled and betrayed. You’ve reacted with calmness, clarity, candor, character and class. No matter the Administration, the Policy or the Politics, you have always accomplished the Department’s business. The American workers know it; the AFL-CIO knows it and appreciates what you do. You get the job done! You get the job done!

And so as the motto of the NCFLL says, and please feel free to adopt it because it shouts to the rooftops the great job you accomplish each and everyday. “WHERE AMERICA WORKS, WE’RE WORKING FOR YOU!” You are there for the American worker everyday. You get the job done! You get the job done!

God bless you. God Bless the Department of Labor and God Bless America!

Thank you.