December 8, 2009

New Study, National Ad Campaign Reminds Congress Health Care is Everybody

WASHINGTON, DC – A new study released by the United Food and Commercial Workers International Union (UFCW) examines the Senate health care reform bill, and finds that a provision meant to hold corporations accountable actually encourages companies to duck their fair share of the costs of health care reform.

The report examines the Senate bill by looking at its impact on America’s largest and most irresponsible private employer – Walmart. As written, the employer responsibility provision—“Free Rider”—would provide no overall health care cost savings because it would:

• Incentivize the hiring of a largely part-time workforce, and encourage reducing workers’ hours as a way to eliminate company responsibility for health care costs.
• Force low-income Walmart employees into high-deductible, company-provided insurance.
• Make few, if any, Walmart employees eligible for tax credits to purchase better insurance through the health insurance exchange.
• Continue Walmart’s dependence on federal and state subsidies for Medicaid for its employees, and encourage Walmart to have even more employees dependent on Medicaid.
• Provide little or no incentive for Walmart to provide better care to its workers.

These findings have galvanized a broad coalition of working families and their supporters to call on Senators to fix the flawed provision of the bill to ensure that President Barack Obama achieves his goal of quality, affordable health care for every American. Concerned organizations that have signed on to a comprehensive ad campaign include the Communications Workers of America, the International Brotherhood of Teamsters, the United Auto Workers, the United Farm Workers, USAction, and the United Steelworkers. Beginning with full page ads in Capitol Hill publications and a national Web presence, the group will roll out print ads across the country over the next few weeks.

The findings of this report put a bright light on just how critical employer responsibility is to health care reform. With much of America’s job growth expected to be in retail over the next few years, it is clear that not including strong employer responsibility provisions will result in a part-time workforce dependent on already overburdened state programs for health care.

The complete report can be viewed online at www.fixthebill.org

November 5, 2009

SENATE FREE RIDER PROVISION GIVES NATION

UFCW Releases Briefing Paper Detailing How Free Rider Provision Would Incentivize Irresponsible Walmart Employment Practices and Diminish Shared Responsibility for Health Care Reform 

Washington, DC—The United Food and Commercial Workers International Union (UFCW) released a briefing paper, today, examining the impact of the Senate’s Free Rider provision on the nation’s largest private employer – retail giant Walmart.   The provision would have the unintended consequences of:

• Providing little or no incentive for Walmart to provide better care to its workers;
• Continuing Walmart workers’ dependence on federal and state subsidies for Medicaid and Medicare, and encourage Walmart to have even more workers dependent on Medicaid and Medicare;
• Making few, if any, Walmart workers eligible for tax credits to purchase better insurance through the health insurance exchange;
• Forcing low-income Walmart workers into high-deductible company-provided insurance;
• Incentivizing the hiring of a largely part-time workforce, and encourage reducing workers’ hours as a way to reduce health care costs.

The Free Rider provision currently would require that, if an employer with more than 50 employees has employees who receive a subsidy (i.e., tax credit) for insurance through an exchange, the employer has to pay a penalty that is the lesser of: The average national tax credit for insurance through exchanges multiplied by the number of full-time employees receiving the tax credit; or $750 times the total number of full-time employees of the company.

But if an employer has only part-time employees receiving tax credits for insurance purchased through an exchange, the employer pays no penalty. Employers also pay no penalty for workers who are on Medicaid or Medicare. And if employers offer bare bones, but high deductible, high co-pay coverage with low premiums, workers would be forced to accept this coverage, purchase coverage through an exchange without receiving tax credits, or pay a penalty for being uninsured—with the employer facing no penalty under the current free rider provision.

Walmart’s employment practices, including limited hours and pay that force many onto public assistance, as well as its cafeteria of health care plans that range from unaffordable premiums to unaffordable deductibles and co-pays for low end premiums would virtually exempt its workers from receiving tax credits for purchasing coverage through an exchange, and, consequently, exempt the company from any free rider penalty.

“A Free Rider provision that would have zero impact on Walmart is a problem,” said UFCW Executive Vice President Pat O’Neill. “The company employs 1.4 million workers in our country, and nearly 700,000 of those employees already get their health care insurance from public assistance, in the emergency room, or a spouse who has a responsible employer. President Obama laid down the principle that health care is a shared responsibility. If the country’s largest employer has no responsibility under the Senate Free Rider provision, then other employers will follow the Walmart example.”

Go to www.wakeupwalmart.com for a complete copy of the UFCW Free Rider Briefing Paper.

 

November 3, 2009

Walmart to Finally Pay Some Workers

WASHINGTON, DC – Today Walmart announced it will pay $85 million dollars to hundreds of thousands of current and former Walmart workers for not compensating them for the work they performed. This lawsuit settlement is the latest in a string of multi-million dollar payouts by Walmart as it attempts to distance itself from a track record of poor employment practices and violations of workplace laws.

“It shouldn’t take the average worker years in court and expensive lawyers to get paid,” said Pat O’Neill, Executive Vice President of the United Food and Commercial Workers International Union, “Walmart should be a good corporate citizen instead.”

Walmart has been involved in around 90 class action wage and hour lawsuits across the United States – including cases where the payout including penalties could have totaled as much as $2 billion.

“Walmart’s workers aren’t asking for a bailout – just to be paid for the work they’ve done,” said O’Neill, “and this case proves that Walmart can’t even do that.”

April 14, 2009

CHANGE TO WIN AND AFL-CIO UNVEIL UNIFIED IMMIGRATION REFORM FRAMEWORK

United labor movement shows importance of
addressing issue during 111^th Congress

 WASHINGTON – Joseph T. Hansen, International President of the United Food and Commercial Workers International Union (UFCW) and chair of the Change to Win Immigration Task Force, and John Sweeney, International President of the AFL-CIO, today unveiled a unified framework for comprehensive immigration reform legislation.

The joint announcement and proposal is a critical sign of support for the Administration and Congress to address immigration reform – and to ensure that it remains a priority on the legislative calendar. It is also an important sign that immigration reform is an important part of economic recovery.

“We need an immigration system that works for America’s workers,” said President Hansen. “For too long, our nation’s immigration system has fueled discrimination and exploitation of workers. It has driven down wages and working conditions. And it has failed to live up to our nation’s values. We now have an opportunity to change course. This framework is a roadmap toward real reform—reform that addresses the needs of our nation’s workers, families and communities. This framework is about moving America forward. We are a nation that respects hard work, family and the pursuit of the American Dream. Our immigration system must hold true to these principles.”

“”Our nation’s broken immigration system isn’t working for anybody –not immigrant workers who are routinely exploited by companies and not U.S. born workers whose living standards are being undermined by the creation of a new “”underclass.””  As a part of broad-based economic recovery, we need a comprehensive solution — and soon.  The development of a unified labor position, a position centered on workers’ rights, puts us on the path to a legislative solution,”” said President Sweeney.  “The labor movement will speak in one voice to address this pressing issue with Congress and the White House to create a system that protects all workers — those who work in our shadow economy and those who have full rights.”

Sweeney and Hansen also were joined by Eliseo Medina, Executive Vice President of the Service Employees International Union (SEIU), and Arturo Rodriquez, President of the United Farm Workers (UFW), in making the announcement. Both Medina and Rodriguez have been national leaders on immigration reform and played a key role in the formation of the immigration framework.

“As we face the most serious recession since the Great Depression—as healthcare costs skyrocket, income disparity grows, and the middle class continues to shrink—the American public wants fundamental reform of economic and social policies that have benefited the few at the expense of the working majority,” said Medina “Immigration reform is no exception. Today’s unified agreement is a major step forward that will, combined with the continued leadership of President Obama, Vice President Biden and bipartisan leadership in Congress, profoundly improve the future of all workers and build a stronger American economy for our children and grandchildren.”

“Today’s unity statement is a recognition of the dire need to have immigration laws that work and work for all workers,” said President Rodriguez.  “Too many workers – both U.S. and immigrant are exploited by the current system and that needs to change.  The United Farm Workers, Change to Win and the AFL-CIO came together because we can no longer be delayed.”

President Obama recently reiterated his support for immigration reform and stated that real reform cannot be completed in a piecemeal fashion

The Unity Framework, which was developed in consultation with Former Secretary of Labor Ray Marshall and the Economic Policy Institute, provides a comprehensive plan for addressing immigration reform.

“”Immigration reform is a core issue for the labor movement,”” said Ray Marshall, former Secretary of Labor.  “”I am pleased to have assisted the unions in coming together to support an approach framed around protecting workers rights.””

The labor proposal adheres to the Administration’s goals by creating a framework that deals with the critical components of reform and does it through interconnected initiatives. The proposal calls for:  (1) an independent commission to assess and manage future flows, based on labor market shortages that are determined on the basis of actual need; (2) a secure and effective worker authorization mechanism; (3) rational operational control of the border; (4) adjustment of status for the current undocumented population; and (5) improvement, not expansion, of temporary worker programs, limited to temporary or seasonal, not permanent, jobs.

In the coming weeks, representatives from labor will be meeting with key Congressional and Administration staff to discuss the framework and how best to move the issue forward. The groups have also briefed key activists and advocates about the framework and will be working closely with these vital allies in the coming months.

Framework for Comprehensive Immigration Reform

Immigration reform is a component of a shared prosperity agenda that focuses on improving productivity and quality; limiting wage competition; strengthening labor standards, especially the right of workers to organize and bargain collectively; and providing social safety nets and high quality lifelong education and training for workers and their families.  To achieve this goal, immigration reform must fully protect U. S. workers, reduce the exploitation of immigrant workers, and reduce the employers’ incentive to hire undocumented workers rather than U.S. workers.  The most effective way to do that is for all workers—immigrant and native-born—to have full and complete access to the protection of labor, health and safety and other laws.  Comprehensive immigration reform must complement a strong, well-resourced and effective labor standards enforcement initiative that prioritizes workers’ rights and workplace protections. This approach will ensure that immigration does not depress wages and working conditions or encourage marginal low-wage industries that depend heavily on substandard wages, benefits, and working conditions.

This approach to immigration reform has five major interconnected pieces:  (1) an independent commission to assess and manage future flows, based on labor market shortages that are determined on the basis of actual need; (2) a secure and effective worker authorization mechanism; (3) rational operational control of the border; (4) adjustment of status for the current undocumented population; and (5) improvement, not expansion, of temporary worker programs, limited to temporary or seasonal, not permanent, jobs.

Family reunification is an important goal of immigration policy and it is the national interest for it to remain that way.  First, families strongly influence individual and national welfare.  Families have historically facilitated the assimilation of immigrants into American life.  Second, the failure to allow family reunification creates strong pressures for unauthorized immigration, as happened with IRCA’s amnesty provisions.  Third, families are the most basic learning institutions, teaching children values as well as skills to succeed in school, society, and at work.  Finally, families are important economic units that provide valuable sources of entrepreneurship, job training, support for members who are unemployed and information and networking for better labor market information.

The long-term solution to uncontrolled immigration is to stop promoting failed globalization policies and encourage just and humane economic integration, which will eliminate the enormous social and economic inequalities at both national and international levels.  U.S. immigration policy should consider the effects of immigration reforms on immigrant source countries, especially Mexico.  It is in our national interest for Mexico to be a prosperous and democratic country able to provide good jobs for most of its adult population, thereby ameliorating strong pressures for emigration.   Much of the emigration from Mexico in recent years resulted from the disruption caused by NAFTA, which displaced millions of Mexicans from subsistence agriculture and enterprises that could not compete in a global market.  Thus, an essential component of the long term solution is a fair trade and globalization model that uplifts all workers, promotes the creation of free trade unions around the world, ensures the enforcement of labor rights, and guarantees all workers core labor protections.

1.  Future Flow

One of the great failures of our current employment-based immigration system is that the level of legal work-based immigration is set arbitrarily by Congress as a product of political compromise —without regard to real labor market needs—and it is rarely updated to reflect changing circumstances or conditions.  This failure has allowed unscrupulous employers to manipulate the system to the detriment of workers and reputable employers alike.  The system for allocating employment visas—both temporary and permanent—should be depoliticized and placed in the hands of an independent commission that can assess labor market needs on an ongoing basis and—based on a methodology approved by Congress–determine the number of foreign workers to be admitted for employment purposes, based on labor market needs.  In designing the new system, and establishing the methodology to be used for assessing labor shortages, the Commission will be required to examine the impact of immigration on the economy, wages, the workforce and business.

2. Worker authorization mechanism

The current system of regulating the employment of unauthorized workers is defunct, ineffective and has failed to curtail illegal immigration.  A secure and effective worker authorization mechanism is one that determines employment authorization accurately while providing maximum protection for workers, contains sufficient due process and privacy protections, and prevents discrimination.  The verification process must be taken out of the hands of employers, and the mechanism must rely on secure identification methodology.  Employers who fail to properly use the system properly must face strict liability including significant fines and penalties regardless of the immigration status of their workers.

3. Rational Operational Control of the Border

A new immigration system must include rational control of our borders.  Border security is clearly very important, but not sufficient, since 40 to 45 percent of unauthorized immigrants did not cross the border unlawfully, but overstayed visas.  Border controls therefore must be supplemented by effective work authorization and other components of this framework.  An “enforcement-only” policy will not work.  Practical border controls balance border enforcement with the other components of this framework and with the reality that over 30 million valid visitors cross our borders each year.  Enforcement therefore should respect the dignity and rights of our visitors, as well as residents in border communities.  In addition, enforcement authorities must understand that they need cooperation from communities along the border. Border enforcement is likely to be most effective when it focuses on criminal elements and engages immigrants and border community residents in the enforcement effort.  Similarly, border enforcement is most effective when it is left to trained professional border patrol agents and not vigilantes or local law enforcement officials—who require cooperation from immigrants to enforce state and local laws.

4. Adjustment of Status for the Current Undocumented Population

Immigration reform must include adjustment of status for the current undocumented population.  Rounding up and deporting the 12 million or more immigrants who are unlawfully present in the U.S. may make for a good sound bite, but it is not a realistic solution.  And if these immigrants are not given adequate incentive to “come out of the shadows” to adjust their status, we will continue to have a large pool of unauthorized workers whom employers will continue to exploit in order to drive down wages and other standards, to the detriment of all workers.   Having access to a large undocumented workforce has allowed employers to create an underground economy, without the basic protections afforded to U.S. citizens and lawful permanent residents, and where employers often misclassify workers as independent contractors, thus evading payroll taxes, which deprives federal, state, and local governments of additional revenue.  An inclusive, practical and swift adjustment of status program will raise labor standards for all workers.  The adjustment process must be rational, reasonable and accessible and it must be designed to ensure that it will not encourage future illegal immigration.

5. Improvement, not Expansion, of Temporary Worker Programs

The United States must improve the administration of existing temporary worker programs, but should not adopt a new “indentured” or “guest worker” initiative.  Our country has long recognized that it is not good policy for a democracy to admit large numbers of workers with limited civil and employment rights.