Subject: Labor Relations INK April 2022

April 28, 2022

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Why the NLRB Should Require “Captive Audience” Meetings

Labor Relations Insight by Phil Wilson

 

The NLRB General Counsel is on the warpath against so-called “captive audience” meetings (what the rest of the world calls a work meeting). The claim is that employees should not have to listen to an employer speak about unions. This includes not just group meetings but even one-on-one conversations. The NLRA specifically provides the right for an employer to engage in this speech, and that right has been repeatedly upheld by the Supreme Court. Nevertheless, here we are.

 

There are numerous problems with the General Counsel’s proposed argument, and apparently the strategy is to give the Supreme Court another chance to uphold employer free speech. I’m not going to litigate the case here other than to repeat what the Supreme Court ruled in NLRB v. Gissel Packing: companies have a protected right under the First Amendment, as implemented under Section 8(c) of the Act, to express views and opposition to unionization directly to employees. Even though Gissel ultimately found the employer committed unfair labor practices, it was based on what the employer actually said in the meetings (and elsewhere) not the mere fact that they conducted mandatory meetings.

 

The Supreme Court, while finding that unfair labor practices occurred during the meetings, did not discuss any concerns with the meetings themselves. They also said employers are free to communicate any “general views about unionism” or any “specific views about a particular union” so long as there is no threat of reprisal or force or promise of benefit.

 

Another question that has not been raised (but should be) is whether these speeches are political speech, which is granted a higher level of protection than commercial speech. Unions are among the most politically active organizations in the country and are vocally supported by politicians up to and including “the most pro-union President ever.” An important topic in these meetings is the fact that unions often contribute to political causes and politicians that don’t share the views of the employees they represent.

 

Putting aside the question of whether these meetings are protected, the more important question is why aren’t these meetings required by law? Employees today are voting in unions at a pace not seen in years. But they are also doing it based on a massive amount of misinformation and outright lies. The media (social and otherwise) and armchair “experts” with no actual experience tout all the amazing things unions will do, especially for young workers like the Starbucks partners who have organized in over 250 stores across the country.

 

When you read why these workers are organizing and what they expect to get during bargaining it makes me sad. Their logic is reasonable enough. Newer workers have experienced the two worst economic crises since the Great Depression. These idealistic and energetic young workers ask how can we make work better, more equitable, and just for everyone? How do we fix an economic system that rewards the top earners while leaving frontline workers struggling to get by? How do we make work meaningful, rewarding, and a place where we can bring our full selves to work? These are all great questions.

 

The problem is that unions do not provide the answers to these questions. Their claims, to the contrary, are provably false. Many union workers make less than similarly situated non-union ones. That’s before paying union dues, which further expands the gap (and shrinks any advantage unions claim). Much of the critiques of work, while true, are not even required subjects of bargaining and even the ones that are don’t often make it into labor contracts. Most of the time union contracts restrict and take away many of the things younger workers value most, like flexibility and advancement based on skill and performance versus seniority.

 

The promise that makes me cringe most is “you are the union.” This lie has been swallowed hook, line, and sinker by Starbucks partners (and pretty much everywhere else) and at some point soon, I have a feeling unions are going to regret how unclear the realities of bargaining have been explained. As soon as these new union members actually prepare for bargaining and realize how few of them are at the table, and how little input they actually have in the process, their heads will explode. They’ll be disappointed to find out that they don’t get to express their grievances to “corporate,” but instead to a negotiation expert.

 

These employees will be really alarmed when they are told by the negotiation experts assigned from their union (not the organizers who sold them a bill of goods) that the first contract is always the hardest and doesn’t include all the stuff they thought they’d be getting. They will be told not to talk at the table because the company will see that as division on the union side and try to take advantage. They’ll learn about non-mandatory subjects of bargaining, which cover many of their most important issues. Finally, they’ll discover that the give and take of bargaining is not an all-win, no-lose situation.

 

This is why mandatory meetings should be required. Unions have their point of view about all of these subjects and will violently disagree with them. Fine. Unions have more access to employees today than they ever have. Maybe there should be a debate instead of interruptions at home or outside of work. But employees deserve to hear both sides before they make this important decision. They should really understand how the process works, from experts who actually know how it works. They should be pointed to factual information (much of this is available directly from the NLRB and other neutral sources) that discusses the realities of bargaining. If after that discussion employees think this is the best way to fix what they think is wrong at work they should vote for representation, but ONLY after they’ve had that chance.

 

I know this is all a pipe dream under the current administration. It’s the nature of our system. Instead, we’re probably headed to a massive number of elections stalled by legal appeals where employers are forced to defend their free speech rights. That’s a shame for everyone and does nothing to further the purposes of the Act.

NLRB Plans To Undermine Captive Audience Meetings

by Greg Kittinger


NLRB General Counsel Jennifer Abruzzo is taking it to the streets to launch her assault on US businesses. In this YouTube video hosted by A More Perfect Union, Abruzzo challenges the legality of captive audience meetings, and in her April 7th Memorandum announced her intent to overturn 75 years of precedent, saying that such meetings “inherently involve an unlawful threat.”

 

The 5th Circuit Court of Appeals may have set a new precedent at the NLRB, as it ruled in favor of President Biden’s firing of NLRB General Counsel Peter Robb on inauguration day. We may have to get used to GCs getting the axe every time the administration in Washington changes parties.

When Union Corruption Life Imitates Art 

by Kimberly Ricci


The same song and dance of corruption inevitably infects the union life. That’s not exactly news, but in Chicago, the subject felt as extreme as a movie when a Teamsters boss accepted $325,000 in cash payments from a local film studio from 2014 to 2017. John Coli, who helmed a local with over 10,000 members, also bragged, “I wouldn’t talk” even if someone threatened to “cut my fingers off.” Of course, Coli later cut a deal with the Feds, who then secured Coli’s guilty plea while he helped them nab a state senator who defrauded Teamsters members of over $240,000. That’s not all, though. Coli threatened to pepper the film studio with strikes if he didn’t get paid.

 

Also in Chicago, one group of firefighters aims to shut down corruption within the SEIU, which had attempted to turn union and non-union workers against each other. As a result, their SEIU local’s bosses received pink slips while speculation swirled about the union maneuvering to shut down a decertification effort. However, 80% of those firefighters made their opposition known while voting to boot the SEIU.

 

In Detroit, the UAW’s corruption troubles refuse to stop after yet another union official got busted for embezzling over $2 million in Stellantis-employed member dues. He reportedly spent that cash on guns, gambling, and child support, which puts a whole new spin on the meaning of Detroit’s “Big Three,” for sure.

Union Shenanigans Are Morphing While Starbucks and Apple Buckle Down

by Kimberly Ricci


We recently told you how union organizing drives are stepping outside the box and abandoning old-guard ways in favor of new strategies to ensnare workers in industries that are not traditionally plagued by union activity. To that point, workers at a thrift store admitted that they organized after being inspired by a nearby Starbucks, and now, even climbing gyms aren’t immune to unionizing. Employees at the Virginia-based Movement Climbing voted to join the SEIU, likely as part of the new union pattern of aiming at “progressive” employers.

 

Make no mistake, that arsenal of strategies leads to some strange places.

 

Over on the TikTok social media platform, a group of digital activists (known as Gen-Z for Change) have apparently labeled themselves as the “progressive movement’s TikTok army.” The group admitted to targeting Starbucks with scripts that generated an onslaught of 40,000 fake job applications to replace a handful of organizing workers, who the coffee house giant allegedly fired for union support. The group also claims that over 100,000 TikTokers are ready to answer calls for action.

 

In other Starbucks-related organizing news:

  • The Starbucks dismissals also attracted an NLRB lawsuit, through which the Feds aim to force the company into rehiring three Phoenix employees, who the board maintains were let go through “illegal conduct” by Starbucks.

  • Starbucks made its own complaints with the NLRB. Those include allegations that organizers of Starbucks Workers United physically intimidated employees (who didn’t wish to join the drive) and endangered customers while picketing.

  • After 20 Starbucks stores unionized (and that includes 4 unanimous votes for unionizing in one week), that streak ended with a loss at a Virginia location. Returning (interim) CEO Howard Schultz urged other Starbucks locations to follow suit while he pledged to prove that he can address employee concerns in an ultimately more productive way than a union.

  • To that end, Schultz is reportedly considering offering better benefits exclusively to nonunion employees, meaning that a two-tiered system would be created, and the benefits in question would not be available to any Starbucks worker who votes for unionization.

  • Could Schultz pull off such a plan? The legal waters look nebulous at best, and Schultz has reportedly cited federal law while considering this route. Expect this to be a future point of contention if it materializes. 

 

Another giant (in the Silicon Valley tech-retail realm) might face a Starbucks-like trickle of union activity. Apple Store workers confirmed months of whispers:

  • Retail workers at an Atlanta Apple Store became the first outlet to file for a union election with May 5 as a proposed on-site election day. They aim to be known as the Apple Workers Union under the Communication Workers of America (CWA), who previously launched an aggressive CODE-CWA (Coalition to Organize Digital Employees) mission to organize tech employees.

  • Apple’s Atlanta union organizers nodded toward an Amazon Alabama warehouse (where the company actually won two elections, and the union hasn’t been voted in) as their inspiration for seeking representation. 

  • Workers at a second Apple store (at Grand Central Terminal store in New York City) began organizing, although they haven’t gained enough signatures yet to file with the NLRB for an election with the Workers United arm of the SEIU. One of their key demands, which matches the Atlanta workers’ demands: a $30 minimum wage.

 

The ongoing Amazon organizing drives saw development, too:

  • The e-commerce behemoth filed to appeal the JFK8 Staten Island vote, which landed in favor of becoming the company’s first unionized warehouse. Within that appeal, Amazon accused the NLRB of voter suppression and cited alleged bribery tactics by union organizers.

  • A second vote in Bessemer, Alabama showed preliminary results that pointed toward an Amazon victory over the Retail, Wholesale and Department Store Union. The union is objecting to the vote as this saga continues.

More Union Infiltration of the Mass Media and Hollywood

by Kimberly Ricci


The Communication Workers of America and their CODE-CWA initiative do forcefully target tech workers, but in the media realm and in Hollywood, keep your eyes on other unions. The Animation Guild of the International Alliance of Theatrical Stage Employees (IATSE) recently unionized production workers on Hulu’s Solar Opposites series. The Guild made it known that they have pinpointed further targets as well.

 

In the media realm, Condé Nast editorial, video, and production employees from several publications (including GQ, Vanity Fair, Architectural Digest, and Vogue) wish to collectively bargain (and ask for voluntary company recognition) as the Condé Nast Union under NewsGuild. The union began pursuing Condé workers years ago and saw a first infiltration of the global mass media company at The New Yorker in 2018. 

Score Board

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Are The United Auto Workers Grinding Toward an Inevitable Halt?

by Kimberly Ricci


As we recently noted, no number of watchdogs and lawsuits can stop the union corruption hits, and that reality is about to hit home for the UAW. The deep-pocketed union can’t possibly maintain that status with dwindling membership that peaked 40 years ago and fell about 6% in the past year alone. This factoid has met bizarre opposition from UAW President Ray Curry, who acknowledged the grim statistic but insisted that the union is “on solid footing” while pointing the finger at “delayed” due processing and payroll figures at the end of 2021. 

 

Curry may be in denial, which doesn’t bode well for upcoming UAW bargaining for new agreements with GM, Ford, and Stellantis. The Detroit Three is moving toward EV horizons (and encouraged by President Biden favoring companies with unionized workforces). Still, the UAW is struggling to shed their ongoing corruption scandal and federal probe, which continues to rack up expenses for the union while they also attempt to transition to their new method of directly electing leaders.

 

Meanwhile, the UAW’s focus (on new recruits) certainly shifted – probably because their membership declined from a high of 1.3 million members to about 372,000 – from the auto industry to university workers and grad students. Auto plant union membership continues to decline, due to a greater market share belonging to union-free automakers like Toyota, Honda, Subaru, Volvo, Volkswagen, and Tesla. 

 

Speaking of the latter, Tesla CEO Elon Musk recently threw down the gauntlet and dared the UAW to attempt organizing his employees. He also swung at the UAW for “fighting for the right to embezzle money from autoworkers." Ray Curry, for his part, responded to Musk by demanding that Tesla admit to labor violations. However, Musk countered by pointing out UAW’s many instances of fraud.

 

Checkmate by Musk? Perhaps, and more UAW pains on the way while Stellantis Jeep jobs in Illinois are evaporating as the company lays off workers and claims that it’s the only way to be more “sustainable” as a company.

The Jig Might Be Up for Concrete-Scheming Teamsters

by Kimberly Ricci


The Seattle area concrete-mixer strikes (wrought by a Teamster local, starting five months ago) will finally come to an end with a huge construction backlog waiting in the wings. The return, so far, is slow-going with hundreds of drivers slowly making their way back to work after the flow of concrete began nonetheless, with some replacement and “ghost” drivers stepping up and some union members crossing the picket lines.

 

As of now, (still) no deal exists between the Teamsters and those affected companies, although striking workers (and those laid off as a result of the strikes) expressed relief at going back to work. Residents will surely express the same emotion to see transit and stormwater-related projects fire back up while negotiations carry on.

 

It’s no wonder that construction firms voiced opposition toward Biden’s pro-union agenda at the North America’s Building Trades Unions (NABTU) legislative conference. At that event, Biden promoted “project labor agreements” that would essentially order construction contractors and subcontractors to enter into these agreements “with one or more appropriate labor organizations” if they wish to participate within contracts that receive federal funding for infrastructure work. 

The Private Sector Is Driving Up Their Minimum Wage, But Chaos Still Lurks

by Kimberly Ricci


Very early during the pandemic, competition for workers pushed companies to raise wages to attract workers, and that trend shows little sign of slowing. Verizon joined the crowd in pushing its own minimum wage up to the retail milestone of $20 per hour nationwide (both for new and existing workers) while also adding sign-on bonuses in some markets. (However, union organizers at Apple asked for $30 per hour, so expect turmoil there if that drive persists.)

 

Likewise, keep your eyes on the aviation industry, where staffing issues among flight crews attracted plenty of attention over the past year. Yet on the ground, the SEIU is reaching out to workers (at airports across the U.S.), who are now pushing for organizing rights and higher contractor pay for those with janitorial and security duties, along with baggage handlers, wheelchair attendants, and more. 

Down South, Old-Guard Unions Must Go; but Up North, a Different Approach


by Kimberly Ricci

Notoriously corrupt unions keep getting the boot in Mexico. We recently told you about how GM plant workers ousted the Confederation of Mexican Workers (CTM) after 25 years of intimidation tactics; and workers at Mexico’s Tridonex auto plant also pushed out the CTM while inserting an independent union in its place. This week, workers at Mexico’s Panasonic Automotive Systems factory freed themselves from the CTM, also in favor of an independent union. 

 

These developments follow the Trump-signed U.S.-Mexico-Canada Trade Agreement (USMCA) that reduces tariffs and promotes higher company profits. However, the USMCA doesn’t do anything to ease supply chain woes that are exacerbated by trucking problems involving the U.S-Mexico border. As it stands, existing federal inspection policies contribute to border delays, and unions including the Teamsters (looking out for their own competitive interests) pushed Texas Governor Greg Abbott to keep a rule for additional state inspections in place. Abbott recently reversed that rule, so perhaps a further tweaking of the USMCA could ease supply chain strains, too.

 

Up in the Canadian western province of British Columbia, a whole different story sees the legislature floating a bill of union-friendly regulations including a big one: union certification would be based solely upon 55% signing of union cards without a vote taking place at all. It’s a stunning rebuke of democracy, although notably, a vote would still be required to decertify unions, so the bill’s entire agenda couldn’t be more obvious.

The Gig Economy Might Be the Biggest Winner of Inflation

by Kimberly Ricci


Lawmakers and the NLRB continue to wrestle with gig worker classification (and defining what that means for companies), but the number of people flocking to gig work is not slowing down. In fact, there’s quite the opposite effect, according to the second annual Branch x Marqeta Gig Payments Report, which reveals how current inflation rates are encouraging existing gig workers to amp up their work hours. 


In addition, the so-called “Great Resignation” contributed to boosting the overall number of U.S. gig workers to 23.9 million (which is almost double the rate of 2017) as workers increasingly shun full-time work in favor of more flexibility. Gig economy businesses could, of course, benefit from the larger pool of talent that is only expected to grow larger over the next five years.


About Labor Relations INK


Labor Relations INK is published weekly and is edited by Labor Relations Institute, Inc. Feel free to pass this newsletter on to anyone you think might enjoy it. New subscribers can sign up by visiting here.


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Contributing editors for this issue: Phillip Wilson, Greg Kittinger, and Kimberly Ricci 


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About Labor Relations Institute

LRI exists to help our clients thrive and become extraordinary workplaces. We improve the lives of working people by strengthening relationships with their leaders and each other. For over 41 years LRI has led the labor and employee relations industry, driven by our core values and our proven process, the LRI Way.

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