Tuesday, November 28, 2006
President's Column - Shadow Government: The Real Cost Of Doing Business
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!”
Monday, October 30, 2006
President's Column - Wal-Mart Always a Bad Deal, Always!
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.”
Tuesday, September 26, 2006
President's Column - MCBUSHISM 2006
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”
Monday, June 19, 2006
Tribute to Marty Berger, Labor Leader
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.
Wednesday, June 14, 2006
Speech at Secretary’s 2006 Awards Ceremony - Philadelphia
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.
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!"
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.
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.
Wednesday, October 05, 2005
President's Column - The Continuing Looting of Katrina Victims
In an area where unemployment is at an all time high and with no work to be found, the President proudly announced that the towns will be rebuilt and the “victims” would help in the process. Jobs for all! But at what price?
This reconstruction is federally funded and therefore under the federal “Prevailing Wage Rate”, but the President signed an Executive Order waiving that law. In addition, to pile on the downtrodden, the Office of Federal Contract Compliance Programs (OFFCCP) has waived any requirement for these “no-bid” contractors to have an affirmative action plan. Most of these contractors have had to be in compliance for other federally funded construction in the past, but waiving the requirement that mandates them to have fair hiring practices. To add insult to injury less than 10% of the work will be given to local contractors.
The irony is that the prevailing wage rate for the New Orleans area is around $9.00 per hour and similar around the rest of the stricken areas, which is barely over the poverty level at best. The continuing irony is that less than. A recent study by the Congressional Research Service says that suspension of Davis-Bacon Act wage rules would not necessarily ensure federal contracts hold reconstruction costs in this area. Conservatives and liberals in Congress have been pushing competing measure regarding this issue. Conservatives are pushing legislation that would automatically suspend the wage-protection law in areas designated by the president as disaster areas, while liberals are supporting several bills that would revoke Bush’s suspension of the law. In the Congressional Research Report poses the question,” Perhaps the most frequently asked question concerning the Davis-Bacon act is: would the federal government (and the taxpayer) save money if the Davis-Bacon Act were repealed or modified to narrow its scope? The short answer is: No one really knows. Conversely, might Davis Bacon result in savings to the federal government in its purchase of construction? That too, would seem to be an open question,”CRS argues in “Davis-Bacon Suspension and Its legislative Aftermath.”
According to CRS, drawing conclusions about the law’s effects on contracting costs is impossible because “the state of current research would probably be insufficient to justify just an assertion.”
But the more pointed question is why give contracts to “friends” without competitive bidding, and then to skimp on the wages paid to the workers? It would be much better to give the bulk of the work to the local contractors, make them pay at least the prevailing wage rate. The money would stay in the area and bolster the economy.
The best way for the Bush Administration to rebuild these areas would be to stop the looting of taxpayer dollars, provide the victims of the tragedy a way to help them get out of poverty with dignity and fair wages.
Saturday, October 01, 2005
President's Column - Lessons Learned in Disaster
As we sit, our eyes glued to the television, unable to stop watching the human tragedy and suffering caused by Katrina , further complicated by the shear weight of incompetent bureaucracy , you can learn some valuable things about the federal government and federal employees. A short four years after the tragedy of 9-11, our country faces another enormous blow and one which may almost be impossible to survive.
What you can learn, once again, is about the indomitable spirit of the American people. But it is being sorely tested. The death toll is expected to be in thousands, one of the single most devastating death tolls in our nation's history. It could possibly be twice that of all our disasters both natural and war combined for a single incident or event. But the spirit came through, how people helped each other, when the bureaucracy failed. How thousands of people volunteered to go to those states that were hit, just to be left languishing until somebody made a decision. But they volunteered and they helped and they fought.
The spirit of the people in those ravaged areas who fought for life though the tears and the horror, just to be ignored, disenfranchised and left by those who were in charge. But they hung on and helped others. Despite the pictures of "looting" by the blacks and "finding food" for the whites in the same disaster area., the spirit of those people who did not have the means to escape but had the will to survive, and did survive until they were placed in areas of relief, that offered little or none.
Prominent among them were the federal employees who lost everything, some still not accounted for, whose homes and families may be lost. Among them are the hundreds of federal employees who immediately volunteered to go and help either as volunteer firefighters, EMTs, National Guardsman or just private citizens. It was not from the lack of volunteerism that help was late; it was because "somebody" had to make a decision. A decision that took almost 4 days to make… too little, too late!
And for those federal employees who went there because of their duty, it was evident that the delay was not because of any union contract or union work rule. The folks on top couldn't get together. The rationale for this Administration wanting to eliminate or severely curtail union contracts and civil service rights was it would delay any mobilization of federal workforce to face any disaster whether from terrorists or natural disaster. All of this has been delayed by the unions or the courts and so existing contracts are mostly still in effect. And it did not delay the mobilization for a second. Every federal employee, union or otherwise was available, prepared and anxious to go where it was necessary and it was as it always had been, the lack of leadership to make the decision.
Millions have been spent on Homeland Security since 9 11 and plans have been drawn, field exercises have been conducted, analyzed and re-analyzed and re-thought for the past four years... and the first time out of the chute, it failed... not from the lack of planning, not from the constrictions of union contracts but by the shear incompetence of the leadership.
While I could gloat and be content that this proved what our unions were trying to convey to the Congress and Administration was proven to be dead wrong, I can't. I am sickened by the devastation and the loss of lives.
I take little comfort in the fact that federal employees, as well as the thousands of other people were right and our "government" got it all wrong. People should not have had to pay with their lives and others with the loss of all they possess to prove a point that federal workers as well as all Americans will rise to the occasion and not let anything get in the way to help others and survive in spite of the incompetent bureaucracy.
Saturday, July 30, 2005
President’s Column - It’s All a Matter of Priorities
Federal Contractors are required to operate under the laws of the land, enforced by the various agencies of the U.S. Government. Agencies that regulate wages, overtime and safety laws, in addition these contractors have to pay all state, local and federal taxes and other fees that might apply. Some of the agencies are the Department of Labor’s Wage and Hour Division; OSHA, OFCCP, the Equal Opportunity Commission and Immigration. Non-compliance with these varied and many agencies should result in the loss of the federal contract. In fact, companies with these types of violations should not be given federal contracts until the issues are resolved.
Yet, many of the contractors are repeat violators of most of the federal, state and local laws and still secure lucrative federal contracts. Even if such “monitoring” is being accomplished for compliance, which is doubtful, it appears to be forgiven and the same violators secure contracts over and over.
A Government Accountability Office (GAO) report has uncovered that more than 33,000 civilian contractors, many of which continue to win new contracts from the federal government – owe more than $3.3 billion in back taxes.
The report, Financial Management: Thousands of Civilian Agency Contractors Abuse the Federal Tax System with Little Consequence (GAO-5-637), investigated 50 civilian agency contractors more closely and found that all of them had “abusive and potentially criminal activity “auditors stated. It reported that businesses failed to forward the payroll taxes they collected from their employees to the IRS, which is a felony.
In one case, a contractor repeatedly opened new business and closed old ones that carried large tax debts for more than 20 years. Federal agencies paid that contractor $1 million in fiscal 2004, despite the fact that he owed almost $9000, 000 in taxes. In another case, a waste collection agency that contracts with the Veteran Affairs Department owes almost $13 million in taxes and the owner has property worth more than $2 million.
GAO auditors said the Treasury Department’s Financial Management Service (FMS), which dispenses and collects money for the government---mismanaged data related to tax collection and in some cases was not even aware of problems until GAO pointed them out. In fiscal 2004, FMS paid $3.8 billion to contractors without recording their proper name, the report stated.
The report recommended withholding payments to contractors if their payment file lacks a proper name. FMS disagreed, saying that withholding might delay payments to contractors who are paying their taxes. The GAO report said that the fact that these contractors have not paid taxes reduces their operating costs, which gives them an unfair competitive advantage against those who are paying their taxes.
There are no statistics that show how many of these same contractors violate the provisions of the Department of Labor’s Service Contract Act, the Davis Bacon Act and other wage and safety laws. Little oversight is accomplished, unless an employee complaint is filed. Other federal agencies such as EEOC and OFCCP and ICE operate similarly. But it appears that laws are being broken or at least bent to the same advantage by these contractors.
DOL’s OFCCP is one of the agencies charged with checking out potential federal contractors for compliance with the discriminatory and immigration laws and do very little of that at present. All Department of Labor agencies are supposed to check for illegal immigrants while conducting their investigations. Checking the INS I-9s against the names on the payroll lists, but has not happened much of late.
With all of this fraud, waste, abuse, non-payment of over $3.3 billion in taxes and potential violations of safety regulations, wage laws, potential discrimination and illegal immigrants, the Administration has by an Executive Order, charged OFCCP to go out and check whether federal contractors have posted and explained the Beck Poster. This is the Poster based on a Court Decision letting employees know that unless the company is a union shop, there is no requirement to join a union.
See, it’s all a matter of priorities! Collecting taxes isn't as important that keeping the union out of the workplace!
Tuesday, February 01, 2005
President’s Column - Contracting Out Just Doesn't Make Sense or Save Dollars
I have demonstrated regarding the cost of contacting out a GS-4 administrative position, costing the Department of Labor $21.95 per hour. The contract employee only received a little more than $8.00 per hour with no benefits. The Department of Labor still had to supervise the employee and provide the equipment that was utilized to provide the service. With that scenario DOL could have hired two GS-4s with benefits for less money than then the cost of the contract.
This process added nothing to the local economy, even if the "work" remained in the community. Without benefits, an underpaid contract employee might easily become a burden on the local economy. Uninsured or underinsured workers cost the taxpayer millions of dollars each year in the cost of providing public assistance and cost of health care coverage for those who are not insured.
Speaking briefly regarding the economic impact of contracting out to low-paying federal contractors, it is part of phenomenon that some like to call "Wal-Martizing." That is to keep wages low so that they are forced to shop at places like Wal-Mart and are forced to apply for public assistance becoming a drain on the taxpayer and on and on and on. It seems to be a reprise of the early 1900s to keep workers poor!
But back to the main theme of whether contracting our makes sense. No matter the logic you apply to the process, it comes up short. Politicians extol the virtues of less government, but if someone is being paid with taxpayer’s money, performing the work that government is mandated to do. That’s not smaller government it is just shifting the money to, in most cases, a large contractor who might or not might not perform as efficiently. But this has become the right wing mantra and the public buys into it. They have somehow convinced the faithful and others that outsourcing is a way to save taxpayers money and make government smaller. When in reality the cost to the government is larger and it is merely a money-making proposition for the federal contractors and the politicians who get the campaign support from them. The taxpayer is the only loser in the process.
But the thing that puzzles me most is that Congress wants to contract out the work. If they belief is that the laws passed or regulations enacted are wrong, or that government agencies do not operate efficiently and it imposes undue hardship of employers, why not change the law or eliminate the regulations. Having a contractor perform the work still imposes the same regulations on companies it just pays someone else more money to do it. It provides neither efficiency to the process nor or less imposition on the companies.
One of the issues pointed out GSA Audit is that the contractor who received the original contract under the GSA regulations had in some cases sub-contracted the work out to other contractors who were not part of the original bid and may not provide the same level of efficiency nor security. So if the General Service Administration Inspector General’s audit is correct, it has cost the taxpayers billions of dollars in waste, abuse and even worse outright fraud!
Saturday, November 20, 2004
Correspondence - Companies Sue Union Retirees to Cut Promised Health Benefits
2nd and Chestnut Streets
Philadelphia, PA. 19106
215 597 5183
215 597 5172
November 19, 20004
Ann L. Combs
Assistant Secretary
U. S. DOL EBSA
Room S 2524
200 Constitution Avenue NW
Washington, D.C. 20210
Dear Madam Secretary:
I have read a very disturbing article in the Wall Street Journal from November 10, 2004 entitled "Companies Sue Union Retirees to Cut Promised Health Benefits." This on its face is distressing but the quote from an unnamed Department of Labor spokesperson is absolutely ludicrous.
This quote was in reference to whether the retires can seek help from the Department and I assume it means EBSA. The quote is contained in this paragraph. "The retirees, by contrast, find themselves in a bind-unsure of their recourse and facing, as they age, the court system’s typical long waits for legal resolution. The U. S. Department of Labor is of little help. Retired workers 'aren't our constituents anymore', says a spokeswoman for the department."
Is this now the policy of the Department of Labor? If it is, what is the function of EBSA if not to monitor the Health and retirement funds of American workers? I find the quote to be outrageous!
I am also a vice president of the Pennsylvania State AFL-CIO and while I do not speak on behalf of the Department, I do find myself having to respond on behalf of my membership to the occasional complaint or questions asked by other unions in the state.
I am requesting that you repudiate the statement and provide clarification as to the function of EBSA in current times. This statement in the context of this article does a disservice to the hard working men and women of our agency and places a stain on the fine work of this agency for decades past.
If you have any questions, please contact me at the above address. I am attaching a copy of the article for your files.
Sincerely,
Jim Weyrauch
Executive Vice President
Sunday, July 04, 2004
President's Column - Contracting Out
Congress then debated, cajoled and created a new federal agency, The Transportation Safety Administration. An agency was set up, a Director was appointed and the hiring process began. The screening process of the new federal employees was accomplished by contractors (possibly the same contractor who screened the non-federal employees previously) and the TSA was set up at all of the airports.
Airline passengers were x-rayed, screened, searched and “wanded” by the new federal employees. For the most part, there were few incidents of the screening not working, but this seemed to be more of equipment malfunction than employee error. The only “glitch” seemed to be that these federal employees wanted to be protected by the union and wanted to have the same protection under the Civil Service Reform as the other federal employees. This triggered a rash of “union busting” not seen since the early 1930s. Court cases, firings and a very hostile work environment, but the work went on almost flawlessly.
Now, Congress has authorized the Administration the use of “Contract screeners”. This is to give back to the same or similar private contractors the position of screening airport passengers, if the airport wants to use them. No one has declared that the federal system doesn’t work or that the private contractors can do a better or safer job. Just that airports can make the decision.
Then take the IRS, Congressional hearings were held because of the terrible methods of collecting the taxes with far-reaching and serious changes in providing a “gentler government” to the taxpayer. So now, with the gentler IRS tax scofflaws are rampant and Congress has now authorized private sector tax collectors to get the unpaid taxes from the beleaguered tax payer. A footnote, many of the defense contractors have a combined unpaid tax bill of 6 billion dollars. They are patriotic enough to get the work, but not patriotic enough to pay their share of taxes.
So, I can’t figure it out, in the two agencies mentioned, the work is being contracted out because the federal workers did exactly want Congress and the Administrating wanted them to do, efficiently and to the letter of the regulations. No mention of whether the contracting out will save money or is a worth-while endeavor, just seems to be contacting out for the sake of contracting out.
Friday, June 04, 2004
Speech at Secretary’s 2004 Awards Ceremony - Philadelphia
But I come to speak about those of us who are not receiving an award this year but deserve recognition just as well. Those of us who are what I like to call Everyday Heroes. Some of us do extraordinary things, like Sgt Brian Murphy, Shop Steward at the MSHA Pittsburgh Health Technology Center who just returned from serving a year in Iraq. My Everyday Hero!
Henry Welcome, the Baltimore OFCCP office shop steward who collects money, clothing, toiletries and anything else that is useful and helps to support two orphanages, three hospitals, one nursing home and the 24,000 Children of the Street in his native land of Honduras and in his spare time acts as an interpreter for Hispanic Immigrants in his neighborhood. My Everyday Hero!
We will be conducting a clothing drive for Henry’s kids in the Philadelphia area and we hope that you all will be as generous with this as you have in the past for other worthwhile charities.
And of course our beloved union sister Dahlia Tyson, who just lost her long and valiant fight against cancer. Dahlia, who for years provided care inspiration to others by how well she lived her life and taught us all on how to have dignity and purpose at the end. Dahlia, who even in her final days still found time to provide comfort and cheer to those who were having their own struggle with cancer, My Everyday Hero!
We will be raising money to send to Cancer Research in her name and anyone wishing to contribute can send the check or cash to Local 644 Charities and mark it for the Dahlia Tyson Fund.
And there are others, lots of others, all of you and the rest of the 1800 DOL employees in the Philadelphia region. . You, who make the Department of Labor work, who in some capacity or other aid in the completion of the mission of promoting the welfare of the American Worker. You, who by doing your job as efficiently and effectively made it possible for today’s honorees have that little extra that secured their Award.
It never ceases to amaze me how well we do our jobs, despite the changes in administrations and policy, despite the slings and arrows of those who don’t like big government. And they, the anti-government people, have been in every Administration since President Carter. I admire President Carter as a great American and Ex-President, but he ran on changing government, as have all the administrations including the present one. This has been the mantra of the past 14 congresses since and the myriad of Secretaries and Assistant Secretaries we have had to endure. They all had the plan, the policy and the vision. But the mission has never changed and we stayed the course and did our jobs effectively, but not quietly. I say not quietly because Local 644 and the NCFLL have always been there to be your voice to set the record straight.
All of these people run on about making government smaller, but because of outsourcing the number of people being paid by the federal government has grown. It is estimated that there is anywhere from 13 to 17 million people doing government work and being paid with government money of that number, only 2 million of them are us. The rest are contractors, and we can not estimate the correct number because Congress won’t pass the The Reporting, Accounting and Cost Act or TRAC. When outsourcing competition is handled fairly, government workers, the real government workers win the competition 89% of the time. So I am always amazed how well you do your jobs, work in your communities and help your fellow man. You, who helped Local 644 Charities raise and distribute over $30,000 to needy folks and worthwhile causes. Who, gave generously to the Children’s with Aids project for years, providing over 600 Easter Baskets each. My Everyday Heroes!
You work hard for your government and your country and neither this administration nor this Congress should eliminate the fairness and respect you deserve for a job well done. The proper culmination of this event should be that each of you contacts your Congressional representative and telling him or her that fact!
I take great pride in telling everyone that I am a federal worker, I work for the U.S. Department of Labor and we do a great job! Look around you and see the great people you get to work with everyday. You! You are my Everyday Heroes!
Thank you!
Thursday, March 27, 2003
President's Column - DeLay and Big Business
Well, we are at war and our family members and friends are in "harm's way.” Federal employees can expect even bigger assaults on their rights, benefits and jobs - all in the name of Homeland Security or the War on Iraq. 170,000 of us have already lost our collective bargaining rights, and maybe our Civil Service Rights. We are contracted out and those of us who remain will probably be asked to take pay cut. Sacrifices always start at the lowest level.
The Majority Leader of the House, Representative Tom DeLay, sent out a fund raising letter for the National Right to Work Foundation. In it he blasted the American Labor Movement, its leaders and members, for being unpatriotic and "trying to expand their power" at the expense of homeland security and troops overseas.” His letter blasted unions for having strikes for working conditions, wages and other issues at Defense Plants and harangued on how Democratic Senators attempted to "hand over operational control of the Homeland Security Department to Big Labor Bosses.
While their may have been strikes at defense plants, no vital war materials were at risk. What he failed to mention was how Defense Contractors, and related industries, were overcharging the federal government - making millions of dollars, while employing tax dodging tactics in foreign countries. His harangue over the Homeland Security Department was not factually correct because all AFGE wanted was to maintain the collective bargaining rights of those employees, enjoyed in their former agencies, going into the new department. Collective Bargaining Rights have been enjoyed for many years throughout the declared and non-declared wars without problems either to homeland defense or to the troops in the field.
The truth is that a long and illustrious list of union members, including members of Local 644, have served their country in war and peace since the first World War. The further truth is that private industry has exploited all the war efforts since the Civil War, maybe even the Revolutionary War, and overcharged the Federal government to the tune of hundreds of billions of dollars. So why is it unpatriotic to fight for decent wages and working conditions during a "war", but not for contractors to overcharge the government for needed war materials?
A union representative from Local 644 who flew 130 combat missions in Vietnam asked me if Representative DeLay had served in the military, and if he did, was he in combat? I don't know and I would not ask. I would say to Rep. DeLay, "shame on you for besmirching the good name of the thousands of union members and leaders who served their country and are now serving in the reserves who have been called to duty.
Local 644 joins with the millions of other union members who support our troops, no matter how we might feel about the mission. Union members and federal employees have sacrificed and served both in war and peace and will continue to do so for as long as it takes.
I am outraged at Representative DeLay's letter and the sentiment behind it and believe he owes the labor movement an apology. He has every right to raise money to fight unions, but not to call us unpatriotic for defending our rights. He may favor Big Business instead of small labor, but that does not give him the right to criticize our patriotism!
Wednesday, January 01, 2003
President's Column - Congress to pay off the Corporate America
This is tax dodging at its best, and not a bit patriotic. The U.S. Treasury estimates that we lose $70 to 400 billion each year from American Corporations taking advantage of offshore tax shelters. And these resources are needed to pay for the government and to pay for homeland security. For example, Tyco, formerly of New Hampshire, now of avoids paying $400 million a year in U. S. taxes by setting up a shell headquarters offshore but was awarded $182 million in lucrative defense and homeland security related contracts in 2001 alone. If Tyco had paid its tax bill, Congress could have easily paid for 400 explosive detection systems, which are badly needed to protect U. S. travelers at airports around the nation.
Ingersoll Rand, formerly of New Jersey, now also in Bermuda earned as much last year in U.S. defense and homeland security contracts as it avoids in U. S. taxes by renting a mailbox. These taxes could have easily funded the proposed Cyberspace Warning Intelligence Network estimated to cost $30 million, or could buy 400,000 gas masks for American citizens.
Another amendment that eases the burden on American corporations is the one endorsed and enacted by the new Senate Majority Leader Bill Frist. It exempts the Eli Lilly company from lawsuits by parents who believe the company's vaccines may have caused their children's autism. How the defense of collective bargaining rights for Federal workers was considered unpatriotic, yet corporate tax dodging is not, escapes my comprehension. These amendments are in the new bill, the agency is not up and running, about 55,000 federal workers may have lost their collective bargaining rights and the country is no safer now than September 10, 2001. All this was done in the name of patriotism and for a secure homeland.
Monday, December 02, 2002
President's Column - An administration that wants to gut all of the labor laws
The Labor Department is the only government agency entrusted with the laws governing the conditions and safety of America workers. The Fair Labor Standards Act, enacted in 1938, was to be a safety and health law to force companies to work employees on an 8 hour day. The FLSA has been turned into a law that governs how much overtime pay is paid to workers for working as many hours as the workers in 1938 or more. The average worker now works 60 hours or more a week.
Secretary Chao has a task force meeting with business interests on how to extend the FLSA to cover overtime only after 160 hours per month. Which would mean that employers could and would work employees as many hours per day or weeks they wished, without the penalty of paying overtime until those hours exceed the 160 hours per month, and would only be required to pay over time if the employees are not exempt for some other reason.
While this an affront to the Labor movement who have fought for the 8 hour day for over a hundred years, it could seriously affect the health of the workers. Countless studies have proven that long work hours over an extended period of time cause long-range health problems and accidents do happen. So it is more than just cheating of these employees, it could seriously affects their health.
In regard to the issue of "monitoring the unions," the Office of Labor Management Standards has been doing this since the passage of the Landrum Griffin Act. OLMS does it effectively, and does protects the union members. But I what of the corporate fraud that has gone on and cheated thousands of non-union workers of their pensions? This agency should be fully funded and ramped up for those frauds yet to surface.
There is the strong appearance that this Administration wants to gut all of the labor laws. This is predictable given the all effort the Labor Movement did in the 2000 and 2002 Elections to defeat the foes of worker protection. But why gut all the laws that protect the millions of workers not protected by labor contracts. After all, there are only 19 million workers in organized labor and millions of others. I understand anti-labor, but why anti-worker?
Monday, November 11, 2002
President's Column - Veterans Day 2002
Paul Wellstone, killed in a tragic airplane crash in October, was the representative in Washington, D.C. for grassroots economic and social justice. He was from Minnesota but everyone, no matter what state they lived, could count on Paul Wellstone to be their voice for justice and the conscience of the Senate. His life was devoted to making things better for those who were downtrodden, poor and he became that spokesman and leader. His was the lone voice in the Congress for progressive ideas and ideals. He learned to negotiate without compromising his ideals and principles. Both sides of the aisles respected him. While most did not agree with his politics, they all respected him as a man of principles.
Tony Mazzocchi was a progressive labor leader. Born in Brooklyn of Italian immigrants, his father a garment worker and an active union member. Tony's mother died of cancer was he was six and the family home had to be sold to pay the medical bills. An event that was the impetus for his avid support of a national health plan. His influence was felt in many movements, he was tireless worker for safety and health with the Oil, Chemical and Atomic worker. He, along with the United Steelworkers, was most responsible for passage of the OSHA Act.
Tony was a combat veteran at the Battle of Bulge and saw the horrors of the concentration camps; he was witness of man's inhumanity. In 1991 he co-founded the Labor Party Associates, with the idea that Labor should have its own party and not be tied to the parties that took workers for granted. His was a life-long struggle for equal rights, human rights and the dignity of the working man. He lost his valiant fight to pancreatic cancer on October 5, 2002. His statement at the 2002 Labor Party convention, " I am both afflicted with an incurable disease and blessed with an incurable optimism, It's been a god run."
I had the pleasure of meeting both of these heroes and working with them in a small way. It was both an honor and a privilege to be on the same planet with them. They shared vision and hope that life could be and should be better for all working people everywhere. Both had principles, neither took the easy way, only the right way...May their light shine forever to guide the rest of us in our daily struggle to make things better. Having known them makes me want to work a little harder and a little longer to carry on their work.
Thursday, October 10, 2002
President's Column - Downsizing the Treasury Department's Bureau of Public Debt
BPD told the National Treasury Union (NTEU) that is planning to substantially reduce the approximately 115 employees in its Savings Bond Marketing Office (SBMO) so that it can force customers to use the Internet to purchase savings bonds. This would reduce the bargaining unit to some 40 employees, and the number of staffed offices would be reduced to four.
SBMO employees are located in small one or two persons offices around the country, working with schools and community based organizations, and acting as liaisons with corporations and other employers in setting up and operating payroll savings bond programs. "For sixty years, the savings bond program has been the first step in savings for a great many Americans," said Colleen M. Kelley, President of NTEU, " and has been their introduction and gateway to other forms of savings and investing. This is a penny-wise and very foolish idea, and it should be dropped immediately."
"Ending SBMO's participation in various community partnership and cooperative programs, Kelly added, " Would significantly hurt efforts improve the financial knowledge and exposure to savings and disadvantaged Americans."
BPD is a key part of the national financial management system, both raising money for governmental functions and keeping strict track of the debt. It raises funds by selling hundreds of millions of dollars worth of debt instruments to the major securities dealers and financial institutions that rare regular customers at Treasury auctions-and by selling savings bonds to individuals.
Treasury's own calculation show that for every $1 billion borrowed through Series EE and Series I savings bonds, $17 million is saved in comparison to costs associated with marketable securities.
Approximately:
- 55 million Americans hold more than $190 billion worth of bonds
- 11 million people buy bonds each year.
- 40,00 employers offer the payroll savings plan to their employees
- 6 million employees buy bonds through the payroll savings where they work.
- $17 million is saved by the Treasury for every $1 billion of bonds sold, when comparing costs associated with marketable securities.
The Savings Bond program was instituted prior to World War II as a means to establish a unifying financial partnership with the American people through voluntary savings and to more constructively manage the public debt.
$8.6 billion worth of bonds were sold during the first nine months of FY 2002; this figure includes $5.9 billion of I bond sales and $2.7 billion of EE bonds sales. Series EE Bond sales include purchase of the "Patriot Bond". More than $2.13 billion worth of Patriot Bonds have been purchased since they were introduced on December 11, 2001.
With this history of accomplishment and the impressive numbers, you would think that this agency would be the centerpiece of the federal government, instead of being on the "chopping block;" but the Bush Administration seems to be in a "slash and burn" mode. If it's the government, it needs to be downsized, contracted out or eliminated, whether it's a good idea or not...
This is a program that works, is efficient and makes money for the federal government and more than justifies its existence.
Tuesday, September 17, 2002
President's Column - The gift that keeps on giving
This cost, if paid, would be passed on to the taxpayer. The "foreign sales corporations" systems lets companies with a foreign presence, such as Boeing CO. and Microsoft Corp., to exempt between 15 percent and 30 percent of their export income from U.S. taxes. By doing that, the price of their goods are lowered and more competitive than foreign rivals.
Last year, the WTO ruled that it constituted an illegal subsidy. The tax break, coupled with a second benefit, not challenged by the European Union, is expected to save u. S. companies an estimated $4.8 billion this year. An WTO arbitrator ruled that the European Union was entitled to impose as much as $4 billion a year in trade sanctions, to make up for European business lost because of the U. S. law. Washington had claimed the figure should be less than $1 billion.
A question would arise - Does the United States make the same such claims for foreign corporations that operate in America? The irony of this corporate giveaway is that it appears that the American taxpayers pays for the original tax break and then would have to pay the European union monies for the lost business in their market by the companies which gave the tax breaks to and for. This is truly a gift that keeps on giving, and giving ... and giving...
Wednesday, September 11, 2002
President's Column - September 11th Anniversary
One year ago, today, all of us remember where we were when the Terrorist captured four airplanes and attacked American. We watched in horror as two planes hit the World Trade Towers and one other hit the Pentagon. While most of us could only watch in horror, in New York, hundreds of others ran for the Towers, they came by ambulance, pick-up trucks, fire trucks and running. Brave men and women headed to the holocaust in an attempt to save the thousands of people trapped in the burning and collapsing buildings. They ran up the stairs, clawing their way through thick smoke a fiery inferno and many lost their lives.
That dark day, one year ago, I lost 634 union brothers and sisters, for all of the rescue workers, police, firefighters and EMTs were all union members. Every rescue worker who ran for the Towers and the 634 who died in that attempt were from organized labor. Of that number 343 were unionized firefighters, 70 of who were through with their regular shifts and were technically off duty.
Hundreds of union construction workers left their paying jobs, ran to Ground Zero and immediately started the rescue and recovery work, working long 15 to 20 hours shifts for days. None of these union members asked who was going to pay or what were the benefits. The union contracts they all enjoyed never got in the way of the work that needed to be done.
So while today, we commemorate the 3000 American citizens that died on 9-11, I have a special place in my heart for the 634 sisters and brothers that were killed in the line of duty. Politicians praised them during the year and great oratory will happen all over the country today. Yet, isn't it ironical that in the Senate there is a heated debate as to whether federal employees of the newly created Department of Homeland Security should enjoy union rights, even 50,000 currently do prior to any transfer. The debates are going because the Administration believed union rights would get in the way of national security.
No one believed that of my 634 union sisters and brothers that gave their lives that fateful day one year ago. To suggest that now tarnishes their memory. I am sure they are in that "better place, singing "Solidarity forever with those other brave union members who died in struggles for human and union rights. And leading the group is that great union leader Mother Jones, who said, "Mourn the dead, but fight like hell for the living"
So I ask the Administration and the Congress - If you really want to preserve the memory of those brave first responders who gave their lives in service to their fellow man, don't give them phony praise, but let them know that you wish to preserve the right of workers to live in a country where union rights or for all… public or private sector.
Tuesday, September 10, 2002
Press Conference
Federal mine inspectors, members of AFGE and state inspectors, members of ASCME, all members of the mine rescue teams were ready to go into the Quecreek mine and bring up any injured miners that day, or to recover the bodies at great risk to their own bodies. These unionized federal inspectors are ready at a moment's notice to go anywhere in the world to lend their expertise and bravery to any mine disaster, building collapse or earthquake, which they have accomplished many times.
Hundreds of AFGE OSHA inspectors and MSHA mine rescue members volunteered and worked at Ground Zero, starting within hours of the planes hitting the Towers. Assisting in making the workplace as safe as possible during those harrowing hours and days of the attempts to save the living and sadly to recover bodies of the victims.
At that site, even as Towers were burning and collapsing, hundreds of union firemen, police, EMTs and construction crews were attempting to save lives. Every emergency worker that died that day was a member of organized labor. With their union card in their back pocket and union contract in their breast pocket they ran up the steps of the Towers to save lives and lost their own. President Bush praised their sacrifice on the days and months following 9/11 but on the eve of the anniversary of that sacrifice, presidential union busting tarnishes their memory.
Who can forget the pictures of the Pentagon burning, the vivid picture of Congress running out of the Capitol to save the government, while at the Pentagon, brave military personnel and unionized government employees running to the building to save government workers.
Today, as we are here, the Vice President is in an undisclosed location. But we know where our union members are. They are at every government building, State County or federal. At every American monument, guarding our borders, our prisons, our national parks and our way of life. Do we care about national security? You bet we do, that’s what we do everyday.
Unionized federal employees - from border patrol agents and transit police to civilian workers in the Department of Defense - work hard every day to protect the freedoms Americans hold dear. All we ask is that we live in a country that protects our union rights as well.