At least 117 bills introduced in 2013 fuel a "race to the bottom" in
wages, benefits, and worker rights and resemble "model" bills from the
American Legislative Exchange Council (ALEC), according to a new
analysis by the Center for Media and Democracy (CMD), publishers of
ALECexposed.org.
A
silent protester cries while wearing a sticker over her mouth
signifying the loss in wages from the "Right to Work" law in Lansing,
Mich., Wednesday, Dec. 12, 2012. Michigan became the 24th state with a
right-to-work law after Gov. Rick Snyder signed the bill. As working Americans speak out for higher wages,
better benefits, and respect in the workplace, a coordinated, nationwide
campaign to silence them is mounting -- and ALEC is at the heart of it.
ALEC corporations, right-wing think tanks, and monied interests like
the
Koch brothers
are pushing legislation throughout the country designed to drive down
wages; limit health care, pensions, and other benefits; and cripple
working families' participation in the political and legislative
process.
ALEC has pushed an anti-worker agenda since at least 1979, when it
began striking out against "forced unionism" and for a "right to work,"
says a
1998 ALEC document.
This "right to work" agenda does not create jobs or job security, but
it does tilt the playing field against workers to give corporations more
profits -- and CEOs more power -- in the workplace and in the political
arena.
Emboldened ALEC Goes on the Offense
Shortly after the 2010 election in which repugicans stole control of
26 state houses, ALEC welcomed hundreds of new members at its annual
States and Nation Policy Summit in Washington, D.C. December 1-3. On the
agenda:
how to crush unions -- key funders of the Democratic Party. Wisconsin
Senator Majority leader and ALEC state chair Scott Fitzgerald said of
the meeting, "I was surprised about how much momentum there was in and
around that discussion, like nothing I have ever seen before."
On February 11, 2011, ALEC legislators and Wisconsin Governor
Scott Walker
(a former state legislator and ALEC alum) sent shock waves through the
state by introducing a "Budget Repair Bill" (Act 10) that effectively
eliminated collective bargaining for 380,000 school teachers, snow plow
drivers, prison guards, nurses, bus drivers, and more. A key aspect of
the law, which prohibits government employers from using payroll
deduction of union dues, reflects ALEC's so-called "paycheck protection"
bills and the "
Public Employer Payroll Deduction Policy Act."
Wisconsin Capitol 2011 protestsThe
move generated massive protests, an 18-day occupation of the Capitol,
and an attempted recall. Video of Walker talking to a billionaire
campaign contributor surfaced in which he explained that the goal was to
"
divide and conquer" -- first going after public sector workers, then private sector. Another governor with
deep ties to ALEC,
Governor John Kasich of Ohio, and his ALEC legislators followed
Wisconsin's lead when they attempted to strip some 350,000 workers of
their collective bargaining rights, but the Ohioans succeeded in
overturning the law by statewide referendum in November 2011.
ALEC's mallet of choice for private-sector workers is so-called
"Right to Work" legislation. These laws were utilitized in Southern
states before and after WWII to supresss wages and keep out unions like
the CIO, which supported an end to Jim Crow laws and racial segregation.
In the decades that followed, they made little headway in northern
states. In 2012, however, Governor Mitch Daniels of Indiana rammed a
"Right to Work" bill through the legislature. Next was the battle royale
in Michigan. Governor Rick Snyder pushed "Right to Work" through a lame
duck session in December 2012 right before a new, more worker-friendly
legislature was sworn in.
As CMD reported, it contained verbatim language from the ALEC bill.
Wisconsin Capitol protestor 2011In every instance, ALEC and the Kochs were there to cheer the radical policies on.
Koch Industries has
long been an ALEC funder, serving on ALEC's corporate "Private Enterprise" board, but the Kochs also exercise their power through
Americans for Prosperity,
a David Koch founded and funded political action group that spent
millions on TV defending ALEC legislators and Scott Walker against
recall and providing fake, astroturf support for the bills in Ohio and
Michigan. It's not the first time the Koch family has come to the aid of
union-busting bills. The Institute for Southern Studies
points out that in 1958, Kansas passed a right-to-work law "with the support of Texas-born energy businessman
Fred Koch, who viewed unions as vessels for communism and [racial] integration."
Other high-profile ALEC fights include battles over "paycheck
protection" in Alabama, Arizona, Florida, and Missouri. In 2012,
Californians battled an ALEC-style "paycheck protection" bill,
disguised as campaign finance reform.
Prop 32 was defeated at the polls in November 2012, but not until
millions had been spent on both sides. Opponents were right to be
worried. New numbers from the
Milwaukee Journal Sentinel
show that Wisconsin's Act 10, which crippled unions' ability to
negotiate for better pay and benefits, cut union membership in half and
forced workers to pay thousands more in benefits.
While ALEC and its supporters frame their actions as fiscally
responsible and pro-worker, it is clear that this is a deeply political
agenda. An
analysis by the Economic Policy Institute
(EPI) shows that, on the whole, these types of bills don't create new
rights for employees but "significantly tilt the political playing field
by enabling unlimited corporate political spending while restricting
political spending of organized workers." Fox News reporter Shepard
Smith
put it even more bluntly.
He noted that of the top 10 political donors in the United States, only
three donated to Democrats -- all unions. "Bust the unions, and it's
over" for the Democrats, he said.
ALEC's Attack on Wages, Benefits, and Unions Harms All Workers
ALEC's wage suppression agenda also targets non-union workers in the
low-wage sectors that are forming the core of the U.S. economy. In an
issue brief called "
The Politics of Wage Suppression: Inside ALEC's Legislative Campaign Against Low-Paid Workers,"
the National Employment Law Project counted 67 bills sponsored or
co-sponsored by ALEC politicians in 2011-12 that eroded wages and labor
standards.
Gordon Lafer, a political economist at the University of Oregon's
Labor Education and Research Center and a research associate at the
Economic Policy Institute (EPI), told CMD, "ALEC's efforts against the
minimum wage, prevailing and living wage, paid sick leave, etc. are an
across the board attempt both to worsen any kind of labor standard and
also to undermine any institutional or legal basis through which workers
exercise some control over the workplace in the labor market."
As Lafer notes, the fate of union workers and non-union workers are
inextricably linked: "Unions help raise standards for non-union workers.
In places with unionized workers, that increases the pressure on
employers of non-unionized workers to reach and meet similar standards."
To cite just one example, ALEC's "Right to Work" law alone depresses
wages for both union and non-union workers by an average of
$1,500 a year, according to an EPI study.
But you won't see these statistics at ALEC. In an annual propagandistic ritual, ALEC "scholars" rank
states' economic outlook based on how well states are following ALEC policy prescriptions. While Wisconsin under Scott Walker has consistently
ranked amongst the worst in the country in job growth and economic performance even by groups like the U.S. Chamber of Commerce, in ALEC's world, Walker's state is
15th in economic outlook.
ALEC Bills Attack Working Families
ALEC specializes in bill names that only a master propagandist would love:
- ALEC's so-called "Right to Work Act" bill (introduced in 15 states
in 2013) does nothing to create jobs or job security, but it does shred
the fabric of unions by preventing them from requiring each employee
who benefits from the terms of a contract to pay his or her share of the
costs of administering it. While unions can exist in "Right to Work"
states, they are in a much weaker position. When a state can't pass a
proposal as radical as "Right to Work," ALEC has provided dozens of
other options.
- ALEC's so-called "Paycheck Protection" bill (introduced in six states
in 2013) requires that unions establish separate segregated funds for
political activities, and prohibits the collection of union dues for
those activities without the express authorization of the employee. The "Public Employee Paycheck Protection Act" (introduced in four states in 2013) forces employees to approve union payroll deductions each year. The "Political Funding Reform Act" (introduced in five states in 2013) prohibits payroll deductions for any funds that might be used for political purposes. The more extreme "Public Employer Payroll Deduction Policy Act" (introduced in five states
in 2013) prohibits deduction of all union dues. All these bills are
attempts to dismantle unions in the guise of worker freedom. For federal
electoral spending, unions already have segregated funding
requirements. At the state level, the U.S. Supreme Court long ago gave
protections to any worker who does not want their union dues to go to
politics. Unions have had opt-out systems in place for decades.
- Multiple bills attacking prevailing wage, living wages, and minimum wages have been introduced across the country (in at least 14 states).
ALEC is on record as being against these measures that not only put an
upward pressure on wages in a region but also set a very low floor (a
full-time worker earning minimum wage earns $15,080
a year, which is not much for a family of four to live on) below which
not even the Koch brothers are allowed to pay. Experts at the National Employment Law Project say
that ALEC's "wage suppression agenda" serves as a significant
counterforce to fights across the nation at the state and local level
for better wages and workplace standards.
- ALEC advances privatization and
outsourcing of public services to workers with fewer credentials, lower
salaries and fewer benefits, with model bills such as the Council On Efficient Government Act(introduced in four states),
which establishes a committee to assess how for-profit corporations can
capture taxpayer dollars by operating public services.
- Michigan's Mackinac Center -- an ALEC member and a member of the network of right-wing state-based think tanks the State Policy Network
that works closely with ALEC -- brought three new bills limiting
workers' rights to ALEC's Commerce, Insurance, and Economic Development
Task Force in 2012: "The Election Accountability for Municipal Employee Union Representatives Act"
(introduced in Idaho) would require public sector employees to vote on
unionization every three to five years (a majority of all eligible
members -- not just voting members -- would be required to maintain
union representation); "The Decertification Elections Act" (introduced in Arizona) would make it easier for both public and private employees to decertify their union; and "The Financial Accountability for Public Employee Unions Act"
(introduced in Montana; passed Michigan in 2012) would require public
sector unions to publish audits of their financial activities.
- Ten states introduced
proposals to dramatically alter pensions for teachers and other public
employees by moving towards the elimination of defined benefit pension
plans (which guarantee a certain level of benefits), to be replaced by
defined contribution plans (which leave the payout to market forces).
These bills reflect the principles in the ALEC "Public Employees' Portable Retirement Option (PRO) Act" and the ALEC "Statement of Principles on State and Local Government Pension and Other Post Employment Benefits Plans."
These proposals are backed by big Wall Street firms, which earn money
by extracting millions of dollars in fees and administration costs from
privately-managed retirement plans. It is worth noting that ALEC also
supports the privatization of Social Security, with its "Resolution Urging Congress To Modernize the Social Security System With Personal Retirement Accounts (PRA's)" (introduced in Arizona this year).
ALEC Corporations Reap the Rewards
All ALEC firms benefit from ALEC's efforts to advance a low-road for
wages and working conditions in America, but some firms have special
culpability for this agenda:
- Software company SAP America, the American Bail Coalition, Pfizer Inc. and the pharmaceutical trade association PhRMA, Exxon Mobil Corporation, Energy Future Holdings, and the coal company Peabody Energy, the alcohol giant Diageo North America, Inc., AT&T, State Farm Insurance, and UPS are on ALEC's corporate "Private Enterprise" board. Anheuser-Busch, LoanMax, Cracker Barrel Old Country Store, Texas Roadhouse, FedEx, John Deere, and Visa are on the commerce task force (more corporations and groups on this task force can be found here).
Although ALEC doesn't make public the roll call for each vote, it is
clear that the majority of these firms have backed this agenda with
their votes and with their funding and continued support for ALEC. At least 49 corporations have decided to take another path, responding to consumer pressure to cut ties with the organization.
- Koch Industries, a representative of the lobbying arm of Koch Industries has served on ALEC's governing "Private Enterprise" board for many years, funding and approving ALEC's race-to-the-bottom agenda on worker rights. Safety violations
at some of Koch plants have lead to fines and other penalties from the
Occupational Safety and Health Administration (OSHA), and in some cases workers have died.
- Cintra, based in Spain, and Macquarie and TransUrban,
both Australian corporations (together, the world's largest developers
of privatized infrastructure, particularly toll roads), are members of
the ALEC Commerce, Insurance, and Economic Development Task Force,
which approves bills limiting worker rights. Cintra and Macquarie have
teamed up to cut multi-billion dollar deals to take control of highways
in places like Indiana and Illinois, basically granting companies a
monopoly to help state government raise quick revenue in the short term,
but in the long-term saddling consumers with high fees and the state
with lost revenue.
- Tobacco companies Altria (formerly Philip Morris) and Reynolds American both sit on ALEC's corporate "Private Enterprise" board. According to the Farm Labor Organizing Committee of the AFL-CIO, Reynolds American's and Altria's human rights abuses of workers at the bottom of its supply chain
have included sub-minimum wages, child labor, heat stroke, pesticide
and nicotine poisoning, green tobacco sickness, lack of water and breaks
during work, and worker fatalities.
Average Americans Pay the Price
Eleven states
have introduced bills in 2013 to override or prevent local paid sick
leave ordinances. At least eight of these were sponsored by ALEC
members, and this is no accident. Although ALEC has not adopted such a
bill as an official "model," ALEC member the
National Restaurant Association (NRA) brought a bill to override local paid sick leave ordinances to ALEC in 2011, as
CMD has reported.
The commerce task force's Labor and Business Regulation Subcommittee
took up "paid family medical leave" as the sole topic of discussion at
the ALEC 2011 Annual Meeting in Louisiana. Subcommittee meeting
attendees were given complete copies of Wisconsin's
2011 Senate Bill 23 (now Wisconsin Act 16). They were also handed a
target list and map
of state and local paid sick leave policies prepared by the NRA. Since
then, Louisiana enacted a similar law in 2012, and 2013 has seen the
introduction of a spate of similar bills, with Mississippi, Kansas,
Tennessee, and Florida signing the measures into law.
Flora AnayaForty
percent of American workers have no access to paid sick leave. Family
Values @ Work, a non-profit network of 21 state coalitions working for
family-friendly workplace polices, has documented some of the impact on
workers and the economy in its brochure,
"Sick and Fired."
Among other facts, it notes that 23 percent of workers have been fired
or threatened with dismissal after taking time to care for themselves or
their family members.
Wisconsin Act 16 overrode Milwaukee's popular paid sick leave
ordinance that was passed in November 2008 by referendum with nearly 70
percent of the popular vote. In 2011, while the Capitol was surrounded
by protesters and Democratic Senators were out of state, the Wisconsin
Legislature moved to override the measure.
Ellen Bravo, head of Family Values @ Work told CMD, "People were
elated when they won the right to paid sick days in Milwaukee, and
outraged when that right was stolen from them by the state legislature
in that incredibly underhanded way."
Flora Anaya worked at Palermo's Pizza in Milwaukee for five years.
She and her co-workers decided to take action against the company
because of its harsh paid sick day policy. Anaya told CMD:
Getting any type of day off for being sick was extremely
hard. Palermo's sick day policy was absolutely inhumane. If you missed
three days within six months, you would lose your job, even if you
brought a doctor's excuse. And if you were one minute late to work, it
was treated as an absence for the entire day.
In 2009, I was pregnant and in pain. One day it was so bad, I asked
for permission to leave to go to the emergency room. I told one
supervisor, but that supervisor didn't relay it to my line supervisor,
and they stopped me from leaving. This happened all the time, to so many
of us.
Conclusion
ALEC has been a historic force in suppressing wages and workers'
rights and continues to exert its influence in states across the country
in 2013. Where is the bottom in ALEC's race to the bottom for America's
workers?
Charles Koch made the agenda of the Koch's, ALEC and their allies very clear in a
recent interview with the
Wichita Eagle.
He laid out his vision of "economic freedom" for America. Key to this
freedom for the Koch's is the repeal of the "avalanche of regulations"
that creates a "culture of dependency" in the United States.
Top of the list of burdensome regulations needing repeal? "The minimum wage,"opines Koch.
Koch's "economic freedom" and ALEC's legislative agenda may not leave much of an economy for the rest of us.
Harold Schaitberger, General President of the International
Association of Fire Fighters, put it best when he told CMD, "The sole
purpose of ALEC has been to develop the most anti-middle class,
pro-corporation policies, legislation, and agenda in history. They've
been waiting for just the right moment to reverse the progress of the
American middle class and drive everyone to the bottom, to the lowest
wages, the weakest benefits, no job security, and no retirement to speak
of. We may not have the billions of dollars of the Koch brothers. But
we have each other and we must stick together and fight ALEC's cynical
and un-American agenda."
View the full list of 2013 ALEC worker rights bills here and below.